Daily Market Commentary 16 May 2022 By Mr. Siddhartha Khemka, Motilal Oswal
Below is the Daily Market Commentary 16 May 2022 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd
Domestic equities witnessed a pause in its selling momentum. Nifty ended its seven days losing streak and opened on positive note. The index traded in a range of ~200 points to finally close with gains of 60 points (+0.4%) at 15,842 levels. Broader market outperformed and closed with gains of more than 1%. Sectorially it was mixed bag. Realty, PSU Bank and Auto were top gainers up more than 2% each, followed by Financial Services, Private Bank, Metals, Oil & Gas and Media. While IT, FMCG, Pharam and Consumer Durables were laggards.
Global markets were mixed as investors digested weak economic data from China, highlighting slowdown in global economic growth. Investors also remained cautious over geopolitical developments as Finland and Sweden moved closer to applying for membership in NATO, as Russia’s invasion in Ukraine forced to reassess their positions.
Nifty has correct by ~8% in last one month and is now in an oversold territory. Even FIIs have aggressively sold over Rs32,000 crores in May so far (9 trading sessions) and may see some slowdown in their selling spree. Markets witnessed some respite today with Nifty managing to sustain above its current support level of 15,700 for the last 3 days. While recovery is still far away, market may remain in consolidation mode for next few sessions. It would later take the direction from the global and domestic cues. On the other hand, Primary market continues to buzz with lot of activity. Three IPO closed last week while three new companies are lined up for this week. In addition, the mega IPO of LIC will be listed on the bourses on May 17. The IPO was oversubscribed 2.95x.
Above views are of the author and not of the website kindly read disclaimer
.jpg)
