Daily Report 16-Jun-22

US Fed increase rate by 75 bps, highest hike since November 1994.  US Fed guides rate by 3.4% by 2022, 3.8% by 2023 & 3.4% by 2024.

Fed Chair Powell: Don’t expect move of 75 bps to be common, next rate hike could be 50 bps or 75 bps based on data.

VIX @ 22.15: Increase yesterday in last half hour – going into US Fed event, we expect to cool-off significantly today.

Approach on Indices: SGX Nifty indicates opening around 15800 level & weekly option expiry will play its role after initial opening.  

Market View: went into US Fed event with binary expectation, witness sharp increase in premium in last half hour, will witness premium erosion in opening trade.  US market reaction post Fed meeting have been muted.  Major event is out, expect a relief rally, time to accumulate stocks with recent low as review

Going into US Fed event, we expect 300 points gap-up / gap-down opening but market opening indicates around 100 points gap-up opening.  Market continues to trade in oversold zone, we still remain optimistic and expect Nifty to test 16000 & Banknifty to test 34000 during the day today.