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Below is the Daily Market Analysis 16 June 2022 By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

Markets tanked on the weekly expiry day and lost over 2%, tracking feeble global cues. Initially, the benchmark opened with an uptick, in reaction to the rate hike by the US Fed, which came in line with the expectation. However, it couldn’t sustain for long and gradually drifted lower as the day progressed. The breakdown of March low i.e. 15,670 levels in Nifty on the weekly expiry day further added to the pressure. Consequently, the Nifty index settled around the day’s low to close at 15,360. All the sectoral indices traded in tandem and ended lower wherein the metal and media stocks were trashed badly. The broader indices too ended with the sharp cuts and lost in the range of 2.5-3.5%.

Markets are skeptical about how the global economies would attain growth amid the aggressive tightening. After the decisive breakdown below 15,650 in Nifty, the next major support zone exists around the 14,800-15,000 zone. We feel it’s prudent to stay light and align the positions accordingly until we see some decisive signal of reversal.

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