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Daily market commentary 24 May 2022 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Domestic equities witnessed sharp swings between gains and losses throughout the day. Nifty opened marginally positive and made several failed attempts to move higher and closed with loss of 90 points (-0.6%) at 16,125 levels. Broader market too ended in red with Nifty Midcap100 down -0.7% and Nifty Smallcap 100 down -1.3%. Among sectors Financial Services, Auto and Banking ended flat to positive, while all other sectors ended in red.

Global markets remain weak as investors continued to assess the uncertain global economic outlook and monetary policies.

Equity Markets remained volatile on expected lines. Even India VIX surged by 9.6% to 25.6 levels indicating continuing discomfort among investors. Nifty is now facing strong hurdle around the 16,400 mark. Any bounce around this level is met with stiff resistance along with selling pressure. Market would react to the minutes from the last U.S. Federal Reserve meeting which would be released on Wednesday, and could give insights into their future course of action. We expect volatility to continue this week given uncertain environment as well as monthly F&O expiry on Thursday

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