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Below is the Weekly Market Quote June 18 By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

Markets plunged sharply lower and lost over 5.5%, pressurised by weak global cues. The bears were in control from the beginning and sentiment further deteriorated after the US Fed announced a 75 bps rate hike. Meanwhile, the easing of domestic inflation failed to comfort the market. Finally, benchmark indices, Sensex and Nifty, settled around the week’s low to close at 51,360.4 and 15,293.5 respectively. All sectors traded in tandem with the trend and ended with sharp cuts wherein metal, IT and energy pack were the top losers. The broader indices underperformed the index and lost in the range of 6-8%.

In absence of any major domestic event, global cues will continue to dictate the trend. Among the events, the US Fed Chair’s speech and China’s decision regarding the loan prime rate will be in focus. Participants will also be eyeing the COVID cases trend and the progress of the monsoon.

The aggressive stance of the US Fed has triggered the fear of recession, which is cascading to markets across the globe. However, easing of global energy supply could change the dynamics ahead. Amid all, participants should follow the trend, which is indicating more pain ahead. After the decisive breakdown of major support around 15,650, Nifty is now inching towards the 14,800-15,000 zone. In case of any rebound, the index would face stiff resistance around 15,550-15,700 levels. Investors, on the other hand, can selectively look for buying opportunities as several quality stocks are now available at a good bargain. 

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