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Below is the Daily Market Analysis 04 May  2022 By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

Markets plunged sharply lower and settled with a cut of over 2%. Participants were in a cautious mood from the beginning ahead of the US Fed meeting outcome scheduled tonight. However, the surprise rate hike by the RBI caught the participants completely off-guard and triggered a kick-jerk reaction. Apart from the policy tightening, hawkish commentary on inflation dragged the key indices lower and the Nifty finally settled around the day’s low to close at 16,667 levels. In line with the benchmark, all sectoral indices ended lower wherein consumer durables, realty and metal were the top losers. The broader markets too ended in line with the benchmark.

After the RBI’s surprise move, all eyes are on the US Fed meeting outcome amid the expectation of a 50 bps rate hike. However, we feel their commentary on future rate hikes and inflation would be critical to set the market tone. On the index front, the Nifty has finally breached the consolidation range of 16800-17300 on the downside and now we’re eyeing the 16,400 zone.  We suggest aligning positions accordingly and continuing with the “sell on rise” approach. 

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