Indian equity benchmarks surged on Tuesday backed by broad-based gains, rising for a second straight day following a six-day sell-off that took away seven percent of their value. However, fears of aggressive rate hikes and their impact on economic growth kept investors cautious.
On the Nifty, the index will need to take out 15,700, which is on the way down. Once the market cracks below that, it will be a significant resistance. The market hit that level intraday and then sold off 50-60 points in the last 15 minutes of trade. So that needs to be taken out quickly and after that, there is a gap which forms between June 10 and June 13 – between Friday and Monday. The gap stands between 15,886 and 16,172, which are the next levels that the market needs to take out for the sustenance of this move. All this depends on the global setup.
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The US markets have rallied significantly last night, it has been a sharp bounce, 2.45 percent on the S&P500, Nasdaq is up 2.51 percent, the Dow Jones is up 2.15 percent and now the oil prices are cracking, they are down around 3-3.5 percent and that is big.
Oil prices on both Brent and on WTI at Friday’s close had posted a bearish outside week. One will need to watch out for that.
European shares began the day in the green, recouping some of the losses after hitting 17-month lows last week, though investors remained on the back foot amid concerns about aggressive hikes in COVID-era interest rates and their impact on economic growth.
The pan-European Stoxx 600 index was up 0.9 percent at the last count.
S&P 500 futures were up 1.8 percent, suggesting a higher opening ahead on Wall Street as investors geared up to return to the market after a long weekend.
Watch the accompanying video of CNBC-TV18’s Prashant Nair for more details.
