Daily Markets Wrap - March 15, 2022 - HDFC Securities

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

Nifty broke a five day winning streak on March 15 led lower by negative global cues. Nifty opened higher but quickly began to fall. The drop accelerated post 1225 Hrs. At close Nifty was down 1.23% or 208.3 points at 16663.0.

On a day when the volumes on the NSE rose to equal the recent average, Auto index rose the most, while Metals, IT, Power & Oil & Gas indices fell the most. BSE Smallcap and Midcap indices fell 0.68-0.88%.

Asian stocks were in the red on Tuesday as surging COVID-19 cases in China hit the confidence of investors who are already worried about the Ukraine war and the first U.S. interest rate rise in three years that could come this week.

Chinese tech stock rout deepened, slashing billions of dollars from the likes of Alibaba Group Holding and Tencent Holdings in Hong Kong, on heightened concerns about an industry crackdown, Covid-19 outbreaks, and China's position on the Ukraine conflict.Losses spiralled after JPMorgan Chase downgraded 28 Chinese internet stocks including Alibaba, Tencent Holdings and Meituan to underweight, calling them "uninvestable" over the next six to 12 months due to rising geopolitical and macro risks.

Equities in Europe tumbled as a relentless selloff in Chinese stocks buffeted global markets, adding to concerns about the war in Ukraine and imminent Federal Reserve tightening.

Nifty could not fill the downgap made on 24 Feb 2022 and corrected. Advance decline ratio fell sharply suggesting that the local investors too seem to have panicked as the war troubles don't seem to be ending and the US Fed meet outcome is just a day away. This is despite the fact that crude oil prices have dipped after rising towards $128/barrel barely a week back. 16757-16471 could be the band for the Nifty in the near term.

Source : Equity Bulls

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