Dear Trader…
Indian equity benchmarks extended their decline into second straight day and ended over half percent lower on Tuesday, as investors remained cautious ahead of crucial macroeconomic data announcements -- industrial production for February and inflation rate for March -- post trading hours. Key gauges made gap-down opening and stayed in red for whole day, as a private report stated that India's retail inflation likely sped up to a 16-month high of 6.35% in March, well above the Reserve Bank of India's upper tolerance band for a third straight month, in part due to a sustained rise in food prices.
Domestic sentiments remained negative in afternoon deals, amid report stating that a sharp rise in prices of essential commodities over the past few months coupled with the latest burden of steep hike in fuel rates have made life difficult for almost every section of the society across the country, with people finding it hard to manage their household budget. Adding more worries among traders, the World Trade Organization projected that Russia's war in Ukraine could almost halve world trade growth this year and drag down global GDP growth too.
Nifty futures opened at 17600.10 points against the previous close of 17723.95 and opened at a low of 17482.00 points. Nifty Future closed with an average movement of 152.20 points and a decline of around 162.65 points and 17561.30 points...!!
On the NSE, the midcap 100 index will decline 1.92% and smallcap 100 index is closing decline 1.58%. Speaking of various sectoral indices, the NSE saw gains in only PVT Bank, Bank and Financial Service stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, April gold opened at Rs.52375, fell from a high of Rs.52879 points to a low of Rs.52375 with a rise of 689 points, a trend of around Rs.52868 and March Silver opened at Rs.67890, fell from a high of Rs.68551 points to a low of Rs.67583, with a rise of 1202 points, a trend of around Rs.68496.
Meanwhile, Reserve Bank of India (RBI) in its latest data has showed that India Inc's direct overseas investment increased 8.5 per cent year-on-year to $3.34 billion in March 2022. The Indian companies had invested $3.1 billion in their overseas fully-owned subsidiaries (WOSs) and joint-ventures (JVs) in the same month a year ago. In the preceding month (February 2022), the outward foreign direct investment was $940.62 million.
As per the data, of the total amount invested in March 2021-22, $1.31 billion was in the form of issuance of guarantee; $1.2 billion as loan and $866.93 million was infused in the form of equity. The RBI said the data is provisional and subject to change, based on the reporting by authorised dealer banks. Major investors who infused capital in their overseas ventures included Tata Communications $690 million in Singapore; Jindal Steel and Power $366 million in Mauritius; Wipro $204.96 million in Cyprus; and Jindal Saw $64.50 million in the United Arab Emirates. All of them invested money in their WOS companies.
Technically, the important key resistances are placed in Nifty future are at 17606 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 17676 – 17737 levels. Immediate support is placed at 17505 – 17474 levels.
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