Daily Markets Wrap - May 4, 2022 - HDFC Securities

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

Nifty fell sharply on May 04, following an unscheduled sudden announcement by the RBI Governor raising repo rate and CRR. Nifty opened nominally higher, but soon started to fall mildly. The pace of fall started to rise post 1400 Hrs after the RBI announcement. At close, Nifty was down 2.29% or 391.5 points at 16677.6. In the process, Nifty was the worst performing index in the Asian region.

Volumes on the NSE were around the recent average. All sectoral indices ended in the red with Realty, Metals and Telecom being the loss leaders. BSE Midcap index fell 2.6% while the Smallcap index fell 2.1%.

Shares were mostly lower in Asia on Wednesday, with markets in China, Japan and some other markets still closed for holidays. European stock markets edged lower Wednesday after the European Union proposed new sanctions on Russia, including on Moscow's oil, escalating the geopolitical tension, ahead of the conclusion of the Federal Reserve's latest policy-setting meeting.

Nifty fell below the crucial support level of 16824 and now seems headed for 16013 over the next few sessions/weeks, albeit after some intermittent bounces. On upsides, 16824 could now act as a resistance.

Source : Equity Bulls

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