Weekly Market Update(6/06/2022–10/06/2022) #12

Volatility is expected to stay high with focus on Fed interest rate and CPI inflation data coming this week. Bears to take control of the market reacting to US 40 year high inflation data and industrial output data for April.

Sensex in the past week declined 2.63 percent to 54,303 and NIFTY50 nose dived 2.3 percent to close at 16,202 on Friday. Nifty Midcap 100 fell 0.8 percent and Smallcap 100 lost 1.1 percent.

In addition, RBI also increased repo rate by 50 basis points and revised upwards its inflation projection. The central bank expects inflation to remain above 6 percent for three quarters which will add pressure on bond yields.

FOMC Meeting

Federal Open Market Committee will hold its two-day meeting next week on June 14–15, which is expected to be crucial, especially after the higher-than-expected inflation in May at 40-year high of 8.6 percent, the highest since December 1981.

FII and DII Data

FIIs net sold Rs 12,662 crore worth of shares, whereas DIIs compensated for the outflow by buying Rs 9,611 crore worth of shares.

Market View for the coming week

The breach of 20-day SMA placed at 16,315 strengthens the bearish hold on the market, hinting towards the recent lows of 15,900.

The India VIX, which measures the expected volatility in the market, went up by 2.27 percent to 19.58 levels, favouring the bears.

Support and Resistance levels for Nifty

The key support level for the Nifty is 16,141, followed by 16,081. THe resistance levels to watch out for are 16,293 and 16,385.

Support and Resistance levels for BankNifty

The Nifty Bank witnessed a fall of 1.7 percent to close at 34,484, down 602 points, on June 10. The important pivot level, which will act as crucial support for the index, is placed at 34,303, followed by 34,122. On the upside, key resistance levels are placed at 34,709 and 34,933 levels.

The views represented are only for educational purpose not any stock recommendation, cradletradle is not responsible for any kind of your profit or loss.

Wish you a great trading week ahead!!