Daily Markets Wrap - April 19, 2022 - HDFC Securities

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

Nifty closed lower for the fifth consecutive session on April 19, dragged down by last hour sell-off. Nifty opened flat and remained volatile in a 120 odd point range till about 1440 Hrs. It later sold off and closed near the day's low. At close, Nifty was down 1.25% or 215 points at 16958.7.

Volumes on the NSE were higher than recent average. Among sectors, Oil & Gas was the only gainer. IT, Realty, Power and FMCG indices lost the most. Mid and Smallcap indices fell in line with the Nifty.

Shares were mostly higher in Asia on Tuesday after China's central bank moved to provide more support for its slowing economy. The People's Bank of China conducted a 10 billion yuan ($1.6 billion) reverse repo operation to help add liquidity to the banking system. China's technology stocks slumped as trading resumed in Hong Kong after the long weekend, with continued concern over government regulation and a potential delisting of U.S.-traded shares dampening sentiment.

European stocks opened in the red on Tuesday after the long Easter weekend as the overlapping crises of the war in Ukraine, pandemic and inflation cloud the global economic outlook. Investors already betting on an almost half-point Federal Reserve rate increase next month - are reassessing tightening expectations after St. Louis Fed President James Bullard said that hikes of as much as 75 basis points - while not the base case - shouldn't be ruled out. World Bank chief Economist Carmen Reinhart warned that the global economy is passing through a period of "exceptional uncertainty".

Nifty continued its downtrend and formed a bearish engulfing pattern, though its placement is not bookish. In the process it has filled the upgap made on March 17, 2022. 16816 could be the next support, while 17068 could be a resistance. Going by the high volumes on down days, FPIs seem to be aggressive sellers in the markets and hence if this continues, support levels may get broken one after the other.

Source : Equity Bulls

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