Dear Trader…
Indian equity benchmarks settled lower for a second straight session on Wednesday tracking weakness across global markets against the backdrop of hawkish comments from US Federal Reserve officials and further sanctions against Russia. Key gauges made a gap-down opening and stayed in red for whole day, as traders got anxious with a private report stating that the Reserve Bank of India will delay its first interest rate rise by at least four months to August at the earliest, as the central bank must now start worrying about inflation. Besides, continuous rise in petrol and diesel prices weighed down on the market sentiments.
Traders failed to get any sense of relief with a private survey showed India's services sector expanded at its fastest pace so far this year in March as an easing of COVID-19 restrictions boosted demand, but elevated inflationary pressures clouded business confidence. The S&P Global India Services Purchasing Managers' Index rose to 53.6 in March from 51.8 in February. The index remained above the 50-mark separating growth from contraction for an eighth straight month, input costs rose at the sharpest pace in 11 years.
Nifty futures opened at 17897.00 points against the previous close of 18017.50 and opened at a low of 17837.00 points. Nifty Future closed with an average movement of 127.80 points and a decline of around 157.30 points and 17860.20 points...!!
On the NSE, the midcap 100 index will rise 0.59% and smallcap 100 index is closing rise 0.12%. Speaking of various sectoral indices, the NSE saw gains in only PSU Bank and Metal stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, April gold opened at Rs.51398, fell from a high of Rs.51760 points to a low of Rs.51320 with a rise of 289 points, a trend of around Rs.51660 and March Silver opened at Rs.66178, fell from a high of Rs.66400 points to a low of Rs.65855, with a rise of 36 points, a trend of around Rs.66234.
Meanwhile, Asian Development Bank (ADB) in its flagship Asian Development Outlook (ADO) 2022 has projected a 7% collective growth for South Asian economies in 2022 before picking up to 7.4% in 2023, with the sub-region's largest economy India growing by 7.5% in the current fiscal year (FY23) and 8% in next fiscal year (FY24).
It said the sub-region's growth dynamics are largely driven by India and Pakistan. Pakistan's growth is forecast to moderate to 4% in 2022 on weaker domestic demand from monetary tightening and fiscal consolidation before picking up to 4.5%in 2023. It said developing Asia's economies are predicted to grow by 5.2% this year and 5.3% in 2023, thanks to a robust recovery in domestic demand and continued expansion in exports.
However, it stated uncertainties stemming from the Russian invasion of Ukraine, the continuing coronavirus disease (COVID-19) pandemic, and tightening by the United States Federal Reserve pose risks to the outlook’. Developing Asia comprises 46 member countries of ADB by geographic group: the Caucasus and Central Asia, East Asia, South Asia, Southeast Asia and the Pacific. South Asia comprises Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.
Technically, the important key resistances are placed in Nifty future are at 18033 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 18088 – 18108 levels. Immediate support is placed at 17808 – 17676 levels.
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