Markets continued to feel the heat of broad-based selling while Nifty & Bank Nifty remained more or less resilient to weakness in the broader markets.
In fact, Bank Nifty has managed to post gains for the second straight trading session despite the carnage in global equities while the technology and metal sectors have been taking a major beating in the past few days.
For Nifty, major turnaround support is seen around 16123 and we expect the market to recover post LIC listing. With India VIX crossing above the 22% mark, the sentiment has dampened further but outperformance from Bank Nifty is seen as a silver lining for Nifty’s journey towards 19867 in the near term.
For adding aggressive long positions, the ideal condition is to wait for India VIX to close below 18%. Meanwhile, Asia markets trade lower, and data shows U.S. inflation near 40-year highs in April.
Wall Street losses deepened in the last hour of trading, after a stronger than expected inflation reading reinforced the view that the Federal Reserve may be forced to hike rates quicker tipping the economy into a recession.
Nifty 50 Index & Spread of Nifty50-Nifty500 Index
Stocks to watch
Positive Read through
- Alembic Pharma gets final USFDA nod for a generic version of Arformoterol Tartrate inhalation solution
- Vodafone in talks to merge UK operations with CK Hutchison’s Three, reports say
- Ultratech makes a formal bid for Holcim’s India assets
- Tata Group readying a plan for battery companies in India, and abroad to deepen its push to build electric vehicles
- Aditya Birla group’s Novelis will invest $2.5 billion to build a new low-carbon recycling and rolling plant in the USA
- Canara Bank plans to invest about Rs 1,000 crore over the next three years in building a digital banking ecosystem including a super app
- Texmaco Rail & Engineering receives an order for 20,067 wagons worth Rs 6,450 approximately.
- Kalpataru Power bags orders of Rs 2162 crore
Negative Read through
- Hindalco- Novelis EBIDTA per ton falls 15 pct YoY, margin impacted by supply chain issue.
- REC, PFC to arrange short term loans for imported coal-based plants
- PNB- slippages elevated at Rs 10,500 crore, NIM at 2.86 pct vs 2.93 pct QoQ
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