Daily Markets Wrap - April 7, 2022 - HDFC Securities

Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty fell for the third consecutive session on April 07 led by overnight losses in the US markets. Nifty opened with a downgap, recovered to make an intra day high at 1240 Hrs and then fell again. At close, Nifty was down 0.94% or 168.1 points at 17639.5.

Volumes on the NSE were higher than recent averages. Among sectors Healthcare led the gainers while Oil & Gas, Metals, Consumer Durables and Power led the losers. BSE Midcap and Smallcap indices fell 0.42-0.75%, thus outperforming the frontline indices.

Asian shares retreated on Thursday, in line with overnight global selloff. European shares on Thursday recovered from a selloff, even though risks from a hawkish Federal Reserve and Washington's new sanctions on Russia kept investors on edge.

Nifty did not take support at the up gap area of 17670-17703 band and breached it. Nervousness spread to the broader markets today as is reflected in the advance decline ratio which fell to below 1:1 after 4 days. Currently the markets are led by the non-institutional players who have begun to aggressively take profits in the face of balance sheet reduction by the US Fed and ahead of the RBI policy meet. Nifty should now take support from 17442-17519 band. Friday's RBI MPC meet may not bring in any positive surprise and hence there seems to be little build-up ahead of it.

Source : Equity Bulls

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