Daily Markets Wrap - June 16, 2022 - HDFC Securities

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

Nifty fell sharply on June 16 extending its losing streak to 5 days after giving up morning gains. Nifty opened gap up but soon after making an intra day high thereafter, it fell continuously to close near the intra day lows. At close, Nifty was down 2.11% or 331.6 points at 15360.2.

Volumes on the NSE were the highest since June 03. Among sectors, Metals, Realty and Telecom led the losses. BSE Smallcap and Midcap indices fell 2.3-2.9%, underperfoming the Nifty.

Global stock markets fell Thursday as fears of a recession grew after the Federal Reserve's biggest rate hike in nearly three decades and the Swiss National Bank raised its policy interest rate for the first time in 15 years in a surprise move on Thursday.

Nifty has breached the crucial support of 15.660-15700 and this level will now act as a resistance. On falls 15315 could give some support, failing which the Nifty could head towards 14340 levels over the next few days/weeks. Rate hike fears have depressed expected valuations of stocks on the one hand, while making debt instruments attractive. Stubbornly high inflation is impacting sentiments while fears of recession (that could bring down inflation) could lead to earnings downgrades.