Daily Report 20-May-22

Indian market ended with around 2.5% on Indices taking cues from Wall Street overnight.  IT stocks led the downfall as JP Morgan downgraded IT stocks.

China cuts prime lending rate by 15 pbs, cut is focus on easing impact of recent COVID-19 related lockdown.

Approach on Indices: Nifty & Banknifty have defended March lows & last week low.  We need to remember Tuesday’s 400 points rally & Yesterday’s 400-point decline and such trend may continue.  Be prepared for 300 – 400 points & high volatility to continue.

SGX Nifty indicates gap-up opening around 16000 level, Indian market may continue to trade in tandem with Global market.  Major risk remains is, Indian market open gap-up or gap-down with very limited opportunity for same day.  In any case if Nifty goes below 15740 – 15780 level – we see significant downside to 15318 & 14800 level.