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Below is the Daily Market Commentary 23 June 2022 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Market witnessed increased volatility on account of mixed global cues and weekly expiry. However the positive commentary from RBI minutes overall lifted the investors’ sentiments. Nifty opened positive and swung between gains and losses during the day. However, buying at lower level emerged in second half of the session and index closed with gains of 143 points (+1%) at 15,557 levels. Broader market too ended in green – up more than 1%. Except for Oil & Gas, all sectorial indices ended in green with Auto being top gainer up 4%, followed by IT, Realty and Pharma.

RBI in its minutes highlighted that inflation is expected to come down to 4% in medium term, while revival of economic activity remains steady and is gaining traction.

Global markets were mixed after FED chair Powell’s commentary on curbing of rising inflation which is at 40 year high. However, Oil prices continued to pull back and is down below 110/bbl.

Markets are witnessing headwinds from fear of global recession, monetary tightening, depreciating rupee, and rise in bond yields. On positive side, fall in crude prices and value buying in beaten down counters have helped market to gain some momentum today. While the overall market set up continues to remain ‘Sell on rise’ – intermittent bouts of relief rally can’t be ruled out. Hence we suggest trader to remain cautious of sharp volatility and carry light positions going forward.

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