Bloodbath! Consolidation or Further Fall? Share Market Today

Here are some of the major updates that could move the markets today:

Stocks

Teclos issued a notice for holding the 5G spectrum auction-related pre-bid conference on June 20. The pre-bid conference is the first major event in the detailed auction timetable that is mentioned in the bid document.

Wipro signed an alliance agreement with Eros Investments. Eros Investments has signed an alliance agreement with Wipro, to evolve and scale the artificial intelligence (AI) and machine learning (ML).

LIC has raised its stake in pharma major Dr Reddy's Laboratories to over 5 per cent by way of open market stock purchases during September 2021 to June this year, at an estimated cost of Rs 1,556 crore.

Grasim Industries  announced the appointment of Pavan Jain as its next Chief Financial Officer with effect from August 15, 2022. His appointment comes in the wake of incumbent Ashish Adukia's plan to pursue career opportunities outside the Aditya Birla Group.

Mirae Asset Mutual Fund bought additional 6.5 lakh shares in Nuvoco Vistas Corporation. 

What to Expect? 

NIFTY opened with a gap-up at 15,843 and started falling heavily. There was no stop to the fall. All the major levels were broken. NIFTY closed the day at 15,360, down by 332 points or 2.11%.

BANK NIFTY opened with a gap-up at 33,677 and fell heavily. There was support at 33,120 for a while but the index continued to fall. BNF closed at 32,617, down by 722 points or 2.17%.

IT moved down by 2.4%.

The US markets fell heavily reacting to recession fears. The European markets also fell.

The Asian markets are trading much lower. The U.S. Futures and the European futures are trading higher.

SGX NIFTY is trading at 15,330 indicating a flat to gap-down opening.

NIFTY has supports at 15,315, 15,250 and 15,175. We can expect resistances at 15,460, 15,580 and 15,630.

BANK NIFTY has supports at 32,500, 32,170 and 32,000. Resistances are at 32,870, 33,000 and 33,120.

OI Build-up is not relevant.

INDIA VIX spiked to 22.9.

Foreign Institutional Investors net sold shares worth Rs 3,300 crores. Domestic Institutional Investors net bought shares worth Rs 1,900 crores. 

We had discussed yesterday that the reaction to the Fed event happens only the day after the event. See what happened to the US markets yesterday. Our markets foresaw the fall and fell heavily! The rate hike and fear of inflation has brought our markets to the low.

NIFTY is at 52-week low and has broken the consolidation zone of 2021. Let us see if there will be a further fall. It is better that aspiring investors wait for a while before they jump into buying as there is a chance for further fall.

VIX did not rise as it usually spikes when the market falls this heavily. 

Volatility is at its peak despite lower VIX with a single five minutes candle in the noon turning from red to green with a wide range of nearly 100 points. 

The only positive news is that the crude oil prices have dropped below 120. But this will not be as significant since there are bigger worries for the markets right now.

I will be closely watching 15,250 on the downside.

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