Dear Trader…
Indian equity benchmarks extended the losing run to the fourth straight session and ended with heavy losses on Monday, dragged down by heavyweights Infosys and HDFC twins amid a weak trend in Asian markets. Markets began trade on weak note and stayed in red for whole day, as traders remained cautious as the World Bank cut its economic growth forecast for India and the whole South Asian region, citing worsening supply bottlenecks and rising inflation risks caused by the Ukraine crisis. The international lender lowered its growth estimate for India to 8% from 8.7% for the current fiscal year to March, 2023.
Markets extended fall in afternoon deals, as India’s March wholesale price index-based inflation rose to 14.55 per cent as compared to 13.11 per cent in last month. According to the data released by the industry department, the high rate of inflation in March 2022 was primarily due to rise in prices of crude petroleum and natural gas, mineral oils, basic metals, owing to disruption in global supply chain caused by Russia-Ukraine conflict. Traders overlooked the finance ministry’s statement that the focus on capex in the recently announced Budget for the current fiscal year will boost manufacturing and tax revenue collections, thereby keeping India on track to becoming a $5 trillion economy.
Nifty futures opened at 17221.15 points against the previous close of 17519.25 and opened at a low of 17109.95 points. Nifty Future closed with an average movement of 176.75 points and a decline of around 275.30 points and 17243.95 points...!!
On the NSE, the midcap 100 index will decline 1.05% and smallcap 100 index is closing decline 1.25%. Speaking of various sectoral indices, the NSE saw gains in only FMCG, Auto and Metal stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, April gold opened at Rs.53470, fell from a high of Rs.53663 points to a low of Rs.53303 with a rise of 606 points, a trend of around Rs.53598 and March Silver opened at Rs.69499, fell from a high of Rs.70738 points to a low of Rs.69499, with a rise of 1478 points, a trend of around Rs.70510.
Meanwhile, finance ministry has said that the focus on capex in the recently announced Budget for the current fiscal year will boost manufacturing and tax revenue collections, thereby keeping India on track to becoming a $5 trillion economy. Tax revenues in last fiscal year grew by a record 34 per cent to Rs 27.07 lakh crore, which the ministry said is a remarkable testimony to the rapid recovery of the economy following successive waves of COVID-19.
It stated the central government's focus on making India a global economic powerhouse and the host of measures adopted towards this commitment has directly reflected in India's GDP growth in recent years. This has translated into increased revenue collection for the exchequer while keeping India well on the track towards achieving a USD 5 trillion economy.
Technically, the important key resistances are placed in Nifty future are at 17303 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 17337 – 17373 levels. Immediate support is placed at 17170 – 17107 levels.
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