Last week – review
In our last weekly update, we expected technical bounce from lower level, provided the levels on Nifty @ 15151 & Banknifty @ 32366 are not broken.
Auto stocks outperformed as metal prices continue to decline. US Fed chair Jerome Powell testimony to US Senate and banking committee on 22- 23 June 2022, reiterated its stance to continue to focus to tame inflation even at the cost of growth. Jerome Powell also said with current steps recession looks inevitable. SGX Nifty @ 15859 up 158 points from Friday’s closing.
Approach on Technical: Currently we have considered correction from 16793 to 15183 and level mention are retracement @ 38.2% & 61.8% retracement level on Nifty & Banknifty.
Fundamental Insight
Accenture Plc result on 23-Jun-22 was strong with strong order book. Although stocks are trading around 35% from its recent 52-week high. Indian IT companies are also trading around 30% – 50% from their respective 52 week high.
We see strong possibility of technical bounce in next week and it could also get followed in first week on July ahead of next quarterly result season begins.