Daily Markets Wrap - April 12, 2022 - HDFC Securities

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

Nifty closed lower for the second consecutive session on April 12 in line with other global markets. Nifty opened gap down due to weak global cues and kept falling till it made an intra day low at 1345 Hrs. A small bounce followed and the Nifty closed 0.82% or 144.7 points lower at 17530.3.

Volumes on the NSE were in line with recent averages and Realty, Oil & Gas and Metals indices were loss leaders amongst sectors while Bank index closed marginally in the positive. BSE Smallcap and Midcap indices fell 1.45%.

Asian shares were mostly in negative territory ahead of U.S. inflation data which could foreshadow even more aggressive interest rate hikes from the Federal Reserve. Chinese stocks however bounced back in afternoon trading as foreign investors accelerated purchases and speculation mounted that policy makers will take measures aimed at reviving economic growth. European stock markets traded lower Tuesday, with investors cautious ahead of key central bank meetings, with inflation climbing sharply, while the ongoing Ukraine conflict looks likely to intensify.

The June-September monsoon season is expected to be normal this year, New Delhi-based private forecaster Skymet Weather Services said on Tuesday. Rains are likely to be 98% of the long-term average of 880.6mm, the company says on its website. The occurrence of El Nino is ruled out this year.

Optimism among fund managers over global economic growth has hit an all-time low while concerns of possible stagflation have risen to the highest since August 2008, a monthly survey by investment bank BoFA Securities showed on Tuesday. Asked about their expectations for global growth in the coming months, a net 71% of survey respondents were pessimistic about prospects, the most since the survey records began in the early 1990s.

Nifty after falling gap down has formed a hammer like pattern after a fall, suggesting possibility of an upward reversal. Advance decline ratio fell to much below 1:1 suggesting broad based profit taking in the markets. Nifty could remain in the 17405-17651 band in the near term.

Source : Equity Bulls

Keywords

DailyMarketsWrap HDFCSecurities Sensex Nifty