Market Commentary

Daily Markets Wrap - June 8, 2022 - HDFC Securities

Posted On : 2022-06-08 22:59:47( TIMEZONE : IST )

Daily Markets Wrap - June 8, 2022 - HDFC Securities

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

Nifty closed lower for the fourth consecutive session on June 08, giving up morning gains achieved post the RBI MPC meet. Nifty opened higher and fell in the morning to make an intra day low at 0955 Hrs. a recovery followed and continued post the MPC meet outcome. After making a lower top at 1220 Hrs, Nifty fell. At close Nifty was down 0.46% or 74.7 points at 16341.7. In the process, Nifty was the worst performer in the Asian region.

Absence of fresh negatives resulted in a relief rally in equity and bond markets post the announcement of MPC meet outcome. However this rally was used by investors/traders to lighten their positions.

Volumes on the NSE remained low like in the previous few sessions. Among sectors, Realty and Metals were the main gainers while Telecom, Oil & Gas and FMCG were the main losers. Midcap and Smallcap indices fell less than the Nifty. Advance decline ratio was minorly in the negative.

Asian markets rallied Wednesday, building on a hearty performance on Wall Street and helped by the reopening in China, though analysts continue to warn of near-term volatility caused by surging inflation, rising interest rates and the Ukraine war. European shares fell on Wednesday as investors braced for the European Central Bank's meeting on Thursday and the U.S. Federal Reserve's next week. Worries that central bank tightening will stifle global growth weighed on markets.

Nifty expanded the high low range compared to the previous day and closed lower. We once again saw buying at lower levels, which suggest that institutional buying dries up at some levels. However a higher close still eludes us. 16293-16506 could be the band for the Nifty in the near term.

Source : Equity Bulls


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