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Daily Report 16-Dec-22

Indian market was down by 1.25% to 1.4% on major indices, weekly options expiry dominates the fall after 2:15 PM. Weak global cues and reaction to hawkish US Fed outcome added by expiry volatility.

Wall Street was down by 2.25% to 3.23% on major indices as reaction to US Fed, Bank Of England and ECB. Recession fear and rates continue at higher level for long time triggered sell-off.

Wall Street was down by 2.25% to 3.23% on major indices as reaction to US Fed, Bank Of England and ECB.  Recession fear and rates continue at higher level for long time triggered sell-off.

ECB hike rate by 50-bps to 2.50% and signaled more rate hike, ECB President Christine Lagarde guided for 50-bps pace for period of time.

BOE raised rates by 50-bps to 3.5%, BOE says inflation rate may have peaked and believe that interest rate high enough to drain pricing pressure.

VIX @ 13.73: first sign of moving towards 15 – 16 zone.

Approach on Indices: Nifty & Banknifty are trading at critical support level, anther weak closing will open further downside on Nifty below 18421 & Banknifty below 43337For up move to sustain, Indices need to bounce back and close above level mentioned.

Market View: Major scheduled events are over; market rally recently was built on hope of interest rate peaking but no confirmation given by US Fed.  Which we think to be negative.

SGX Nifty @ 18397 down 62.50 points at 8:00 AM

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