What happened with the Share Market Today

Equity benchmark Index marginally decline on account of weak global markets after the US Fed indicated that its rate hike cycle may be prolonged to cool inflation. However, the domestic market was much more stable compared to other global pares due to encouraging economic data along with impressive quarterly results and FIIs buying interest.

Sensex opened 400 points lower at 60511 (yesterday closing at 60906)  and recovered some losses as the trade progressed. But the index failed to maintain that momentum due to strong domestic cues and buying attributed to banking and select pharma stocks.  Sensex finally closed 70 points or 0.11 percent down at 60,836. Nifty fell 30 points or 0.20 percent to settle the day over 18k at 18,053.

Among the global markets, the overnight US market slipped up to 3% after the US Federal Reserve Chair Jerome Powell said interest rates will need to go higher than previously projected till the inflation target achieve 2%. US Fed hiked 75 basis points to a range of 3.75% to 4%, its highest level since 2008, in line with market expectation Both Asian and European markets slipped half to one percent after Federal Reserve Chair Jerome Powell dashed hopes that relief from the central bank’s monetary tightening campaign was on the horizon.

Banking stocks recorded handsome gains after PSU Banks like Indian and UCO Bank announced impressive Q2 results. PSU Banking major SBI surged 2% to close a record high of Rs585 ahead of quarterly results to be announced on Saturday. PNB (up 5%), Indusind Bank, Bank of Baroda and Federal Bank gained 1-3%

Shipbuilding stocks recorded smart gains in the last few sessions due to a strong order book and the hope for good quarterly results. Cochin Shipyard gained 2% to close a record high of Rs590 and Mazagon Dock gained 3% to close all time high of Rs754.

Technical Outlook:

The nifty index opened negative due to weak global cues but managed to hold its opening zones with support of 17950 and headed towards 18100. It witnessed some consolidation in the second half of the session followed by a pullback move in the last hour. It negated its higher highs formation of the last four sessions and closed with losses of 30 points. It formed a Bullish candle on the daily frame as it closed higher than its opening zones. Now, it has to hold above 18000 zones, for an up move towards 18200 then 18350 zones whereas supports are placed at 17950 and 17888 zones.