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Below is the Daily Market Commentary 7 June 2022 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Weak Global cues, rising oil prices and caution ahead of the RBI Policy meet outcome tomorrow kept the markets lacklustre. Nifty opened gap down and moved sideways throughout the session to finally close with 153 points (-0.9%) loss at 16,416 levels. Broader market was down more than half a percent. Except for Auto and Oil & Gas, all other sectors ended in red. Consumer Durables, Realty and IT were among top laggards.

On global front, Markets were negative ahead of important macro-economic event. The yen fell to a twenty-year low against the dollar, weighed down by the widening gap between yields in Japan and the US in anticipation of rate hike by US Fed in its upcoming monetary policy. Singapore Gross Refining Margins touched new life time highs of $25.2 per barrel mark, on the back of rising demand for refined products globally. However, this is expected to benefit oil refinery companies.

Market is stuck in a broader range for last one month, which is expected to continue until any clear direction emerges on either side. While declines are bought into – support is missing at higher levels. For now the market direction appears weak with lack of any positive triggers both on the global and domestic front. Although Nifty managed to close above its crucial support levels of 16,400 – it touched an intraday low of 16347 indicating pressure in the index and any close below this can lead to further downside in the near term. The commentary of RBI on Wednesday over various economic factors would provide further cues for the market.

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