IGI Logo

Daily market commentary 15 September 2022 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Markets are becoming nervous around the 18k mark and unable to sustain gains made on Wednesday. Nifty opened positive but wiped out its entire gains to close at day’s low with loss of 126 points (+0.7%) at 17,877 levels. Nifty needs to sustain above 17700-17800 zones for the overall setup to remain positive. We expect market to remain in consolidation mode for next few days until the US Fed rate action is over. However intermittent volatility may not be ruled out due to adverse global cues.

While Nifty 50 continues to shy away from its all-time highs, three major indices Nifty Bank, CNX Auto and Nifty next 50 touched their record highs. Tyre stocks displayed strong momentum on the back of fall in key raw material prices including oil and rubber. IT stocks have largely underperformed the broader Indian stock market on fears that a recession in the US will trigger a slowdown in revenue growth and deal wins for Indian outsourcing majors.

Global markets stabilized from recent losses after US reported positive producer price data and value buying at lower levels. However, investors continues to remain cautious amid fear of aggressive rate hike of 75-100bps by US Fed in its upcoming MPC meet.

Above views are of the author and not of the website kindly read disclaimer