Nifty slides while waiting for US Fed news

Nifty Trader • June 14, 2022

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Index	Price	Change	% Chg
NIFTY 50	15732.10	-42.30	-0.27%
NIFTY BANK	33311.35	-94.50	-0.28%
BSE SENSEX	52693.57	-153.13	-0.29%

Daily closing price, change and % change of benchmark indices.

Nifty slides while waiting for US Fed news

Today, the market began trading on shaky global cues, remained volatile, and oscillated between positive and negative zones. While waiting for US Fed news, the Nifty slides 42 points, or 0.27 percent, to close at 15732.

In economic news, consumer price index (CPI)-based retail inflation fell to 7.04 percent in May, down from 7.79 percent in April.

The wholesale price index (WPI) increased to 15.9% in May, up from 15.1 percent in April. WPI has reached its highest level in the last 30 years.

Nifty recorded an intraday high of 15858 and a low of 15659. It was a day with a lower high and a lower low.

Furthermore, the Nifty is trading below its 20-day, 50-day, and 200-day simple moving averages. Similarly, the Nifty Bank fell 95 points or 0.28 percent.

US Fed effect on Nifty daily price chart — Nifty – Gap down – major hurdle to cross

The advance-decline ratio was 0.72, and the market breadth was negative. Nonetheless, it was better than the previous print of 0.13.

The volatility index, on the other hand, fell 2.13 percent to 21.89. FIIs were net sellers today, as has been the case for several months.

NIFTY – DAILY MARKET ACTION
Advancers – 882
Decliners – 1220
52Wk High – 9
52Wk Low – 139
High Band Hitters – 85
Low Band Hitters – 82
200d SMA – 17258
50d SMA – 16718
20d SMA – 16286

Top Gainers and Losers

NTPC, Bharti Airtel, Divi’s Laboratories, Mahindra & Mahindra, and Cipla were the top gainers on the Nifty 50, gaining between 1.4 and 2.15 percent.

TOP GAINERS
NTPC +2.15%
BHARTIARTL +1.80%
DIVISLAB +1.46%
M&M +1.46%
CIPLA +1.39%

Meanwhile, Bajaj Auto, IndusInd Bank, ONGC, Hindalco, and Tech Mahindra were the top losers on the Nifty 50, losing between 1.8 percent and 4.8 percent. Bajaj auto defers its share buyback proposal.

TOP LOSERS
BAJAJ-AUTO–4.83%
INDUSINDBK-2.32%
ONGC-2.23%
HINDALCO-2.17%
TECHM-1.85%

Sectors & Broader Indices

On the sectoral front, it was a mixed bag. Oil & Gas, Auto, and Financial Services were the day’s biggest losers, while Realty, Metal, and Pharma were the biggest winners.

Similarly, the broader indices were marginally lower. The Nifty Midcap 50 fell 0.14 percent, while the Small-cap 50 fell 0.71 percent.

NIFTY SECTORS – NOTABLE ACTION
REALTY +0.81%
METAL+0.37%
PHARMA +0.22%
OIL & GAS -1.21%
AUTO -0.55
FINANCIAL SERVICES -0.42%

Looking Ahead – Inflation & US Fed

The S&P 500 closed at 4797 on Monday, down 21.8 percent from its high in January, confirming the bear market in US Equities.

Likewise, Indian markets are under pressure as investors are concerned about the possibility of the US Fed’s aggressive policy tightening to combat inflation.

Nifty has broken down the box of 15800-16800 and is charting in the negative territory. Therefore, the bias is negative because of headwinds relating to interest rate hikes by the central banks.

Daily Pivots

Read previous -Daily Insights- here
Inflation spook Bulls
Nifty plays catch-up
Struggle for Direction

S2	S1	R1	R2
15551	15642	15840	15948

Daily Nifty Pivots

The Nifty trading range for tomorrow is 15650 to 15850.

Because of recent weakness or selling, we could see a relief rally later this week, particularly on Wednesday/Thursday, when the US Fed makes its announcement.

Inflation data and the outcome of the US Fed meeting will be market movers in the near term.

This article is only for educational purposes and is not an investment advice.