Market Commentary

Daily Markets Wrap - June 10, 2022 - HDFC Securities

Posted On : 2022-06-11 13:56:46( TIMEZONE : IST )

Daily Markets Wrap - June 10, 2022 - HDFC Securities

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

Nifty fell for the 5th day out of the past 6 days on June 10 pulled lower by negative global cues. Nifty opened gap down and kept falling through the day with some intermittent bounces which did not cross the morning highs. Nifty closed at close to its intra day low. At close Nifty was down 1.68% or 276.3 points at 16201.8. In the process, Nifty was the worst performer in the Asian region.

Volumes on the NSE continued to be lower in line with the average of the past 3-4 sessions. Among sectors, Oil & Gas, Metals, Banks and IT indices fell the most while Telecom sector ended minorly in the positive. While the Smallcap and Midcap indices fell less than the Nifty, Advance decline ratio ended sharply in the negative.

World stocks hit a two-week low on Friday as rate hike guidance from the European Central Bank and jitters over upcoming U.S. inflation data stoked concerns about global growth.

Fitch Ratings has revised up its outlook on India to stable from negative while affirming the BBB- rating. "The Outlook revision reflects our view that downside risks to medium-term growth have diminished due to India's rapid economic recovery and easing financial sector weaknesses, despite near-term headwinds from the global commodity price shock," Fitch said in a statement on June 10.

After a streak of 3 weekly gains, Nifty ended lower for the week by 2.31%. Bounces remain shortlived as traders and investors keep selling into them. The US Fed meet on June 14-15 will be next big event affecting the sentiments. Nifty has closed below the gap support of 16204. Now 16026 will be the next support while 16356 will be the resistance.

Source : Equity Bulls


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