The market ended sharply lower with key indices losing over 2% on the back of a 75 bps rate hike by Fed. In initial hours, the Nifty opened higher around 15849 but due to pressure from metals and technology stocks selling was spread across the counter with the Metal index down more than 5% while the technology index fell more than 3%.
After yesterday’s decline, Nifty has breached March 2022 low convincingly while Bank Nifty is still holding above the same, which is placed at 32000.
The prevalence of positive divergence in RSI in both the Nifty50 Index and Nifty 50 Eq Wt index (which is testing the falling channel) indicate the market is prone to a major reversal but confirmation is required with closing above 15715 with the surge in volume.
The spread of the Nifty 50-Nifty 500 Index has re-tested support of flag pattern and we expect the next leg of up move to be more large-cap centric with outperformance expected from financials and auto.
Nifty50 Index & Nifty50 Eq Wt Index
Stocks to watch
Positive Read through
- Dr. Reddys- LIC increases stake in Dr. Reddys from 3.64 pct to 5.65 pct.
- RITES bags order worth Rs 365 Crore from Container Corporation of India.
- Glenmark Pharma launches asthma drug Indamet.
- Delta Corp in focus- Files DRHP for Deltatech Gaming. OFS for 250 Cr, Fresh Issue at 50 Cr.
- Wipro signs an alliance agreement with Eros Investments.
- Bharti Airtel Adds a net of 820,000 mobile users in April.
- Grasim Industries Names Pavan Jain as Chief Financial Officer, Ashish Adukia to pursue career opportunities outside the group.
- HDFC Says invokes pledge on 8.42 pct stake in Ansal Housing.
- Vakrangee Partners Decathlon for sports products on the platform
- Reliance Industries – Reliance Jio adds a net of 1.68m mobile users in April: TRAI
Negative Read Through
- Vodafone Idea (IDEA): Loses net 1.57m mobile users in April: TRAI
- CBI charge sheet against Hanung Toys, promoters in Rs 2040 Crore bank loan fraud case
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