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 43337. For 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