Daily Markets Wrap - August 29, 2022 - HDFC Securities

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

Nifty ended sharply lower on Aug 29, driven by bearish global cues. Nifty opened gap down and recovered part of the losses in the morning session. After making an intraday high at 1230 Hrs, it corrected a bit. At close, Nifty was down 1.4% or 246 points at 17312.9.

Among sectors, Oil & Gas and FMCG ended marginally higher while IT, Banks, Metals and Realty indices fell the most. Midcap and Smallcap indices fell 0.57-0.8%, outperforming the Nifty though the advance-decline ratio was negative at 0.53:1.

Global stocks fell, treasury yields climbed and global currencies lost ground against the dollar on Monday as investors took fright following hawkish comments from some of the world's most powerful central banks. European Central Bank board member Isabel Schnabel warned over the weekend that central banks must now act forcefully to combat inflation, even if that drags their economies into recession.

The CBOE's volatility index, Wall Street's fear gauge, hit a seven-week high on Monday morning - up 7.4 points at 27.46, on mounting risk of more aggressive rate hikes from the Federal Reserve and European Central Bank.

Nifty has made a lower top in the short-term framework with a downgap. The initial target on the down side is 16922 which is 38.2% retracement of the full rise from the low of 15183 and also 123.6% extension of the earlier fall from the high of 17992. 17487 on the upside could be the resistance in the near term.

Source : Equity Bulls

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