What happened with the Share Market Today

Equity benchmark Sensex slipped over 300 points on a highly volatile day ahead of weekly Nifty and Bank expiry today. Weak global market trends following the US Federal Reserve’s interest rate hike and hawkish stance have a negative impact on the market. However, the market bounced back into positive territory in the afternoon sessions and the Nifty recovered nearly 200 points from the intra-day low on account of short covering ahead Nifty and Bank Nifty weekly expiry today and US Future bounced back into positive territory, recovering nearly 400 points from the intra-day low.  Both Asian and European stocks recovered some of their losses following the Federal Reserve’s outsized rate hike, as Japan’s intervention to support the yen sent the dollar lower while the Bank of Japan kept an unchanged interest rate.

Sensex declined 337 points or 0.60 percent to settle at 59,119. During the day, it tanked 624 points or 1 percent to 58,832 and a high of 59457. Nifty went lower by 89 points or 0.50 percent to end at 17,630 while an intra-day high of 17723 and a low of 17532.

US Fed turned more hawkish than anticipated increasing its rate forecast to 4.4 percent by the end of 2022. The indication is that 125 bps more rate hikes can be expected in the next 2 policy meetings scheduled this year. Following this, the US dollar index rose above 111, depreciating INR to beyond 80, a record high. US Fed hiked interest rate by 75bps for a third consecutive time and signaled further aggressive tightening. Overnight, US Dow Jones slipped over 500 points and Dow Future shed by 200 points after the US Fed chairman said that the interest rate will continue to hike till the inflation will cool down to 2% level from 8% currently. US 2-Year bond surged to a 15-year high above 4% which is a concern in the global markets.

Banking stocks witnessed profit booking concern of 10-Year G-Sec Yield surged to a 1-year high at 7.31% ahead of RBI policy meeting will be announced on 30^th September. Axis Bank slipped 2% to close at Rs789. HDFC Bank, Bank of Baroda, Kotak Bank, ICICI Bank, and IndusInd Bank declined 1-2%.

FMCG stocks recorded smart gains in the last two trading sessions on the expectation of improved demand ahead of festival sessions and above-normal monsoon.  FMCG major Hindustan Unilever gained 3% to close at Rs2693. Varun Beverage climbed up by 4% to close at a 52-week high at Rs1171. Marico, Dabur India, Britannia, ITC, Jubliant Food, and Emami gained between 1-3%.

Footwear stocks witnessed a smart rally on the expectation that the demand will improve ahead of the upcoming festival session. Shoemaker, Liberty shoe climbed up by 4% to Rs220. Both Campus and Metro Brand gained 4% each. Tech stocks declined marginally while recovering marginally from the intra-day low. Nasdaq-listed Accenture will announce its quarterly results today. Tech Mahindra, Infosys, and Wipro declined by 1% each. However, Coforge surged 2% to close at 3405. L&T Tech gained 1% to close at Rs3490 while touching an intra-day low of Rs3405.

Metal stocks recovered partially from the intra-day low while the base metal prices on LME (London Metal Exchange) declined sharply. Aluminum price fell to a 1-year low on LME as a concern of global recession will stunt demand for a metal that’s synonymous with growth and expansion. Both Tata Steel and Jindal Steel declined 1% each. Aluminum major Hindalco bounced back into positive territory. It has managed to end positive territory at Rs412 while touching intra-day low of Rs403.

Technical Outlook:
The nifty index opened negative by more than 100 points led by weakness in the Global market. It witnessed a bounce in the opening tick but failed to hold above 17700 zones and again turned in the weakness by drifting towards 17532 marks. It took support near 17550 zones and witnessed a sharp recovery of around 200 points thereafter in the latter part. It went on to touch 17722 zones and finally closed with losses of around 90 points. It formed a small-bodied Bullish candle on a daily scale with a longer lower shadow indicating the tug of war between Bulls and Bears continues. Now, it has to cross and hold above 17667 zones, for an up move towards 17777 and 17850 zones whereas support exists at 17550 and 17442 zones.