Dear
Trader…
Indian
equity benchmarks ended lower in highly volatile trade on Tuesday due to
selling pressure in metal, utilities, power and realty stocks. The markets
opened on a negative note amid weak global cues and remained volatile through
the day, oscillating between gains and losses. Traders were concerned with a
private report that Indian retail inflation likely surged to an 18-month high
in April, largely driven by rising fuel and food prices and staying well above
the Reserve Bank of India’s upper tolerance limit for a fourth consecutive
month.
However, key
gauges managed to trade in green terrain in afternoon deals, taking support
from Union Finance Minister Nirmala Sitharaman’s statement that with licence
quota raj prevailing during the 70 years of Congress regime, the policy change
brought in by the central government under Prime Minister Narendra Modi has
created new opportunities for the private sector by allowing them to
manufacture products that were normally made by public sector units (PSUs).
However, benchmarks failed to hold on to the green in volatile trade, as
traders are concerned that central banks of key developed economies could
resort to more rate hikes going ahead to temper rising inflation, which could
hurt growth and trigger more foreign fund outflows from emerging markets,
including India.
Nifty
futures opened at 16263.30 points against the previous close of 16298.85 and
opened at a low of 16209.00 points. Nifty Future closed with an average
movement of 201.15 points and a decline of around 76.70 points and 16222.15 points…!!
On the NSE, the
midcap 100 index will decline 1.87% and smallcap 100 index is closing decline 2.24%.
Speaking of various sectoral indices, the NSE saw gains in only PVT Bank, Bank,
Auto and FMCG stocks, while all other sectoral indices closed lower.
At the start
of intra-day trading, June gold opened at Rs.51259, fell from a high of Rs.51386
points to a low of Rs.50943 with a rise of 193 points, a trend of around Rs.51150
and May Silver opened at Rs.62450, fell from a high of Rs.62649 points to a low
of Rs.61163, with a decline of 689 points, a trend of around Rs.61859.
Meanwhile,
Union Finance Minister Nirmala Sitharaman has said with licence quota raj
prevailing during the 70 years of Congress regime, the policy change brought in
by the central government under Prime Minister Narendra Modi has created new
opportunities for the private sector by allowing them to manufacture products
that were normally made by public sector units (PSUs).
She said the
previous regimes had centrally planned schemes with regulation of limited
manufacturing opportunities and the aspirations of core industries were clipped
despite their potential to boost manufacturing in the country.
She said
though good things happened after opening up of the economy in 1991 during
Congress period, the policy change undertaken by the Modi government provided
opportunities to private sector, particularly MSMEs, and added that barring a
few strategic sectors, the sector can work together with PSUs in defence, space
and atomic energy sectors.
Technically, the important key resistances are placed in Nifty future are at 16272 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 16303 – 16373 levels. Immediate support is placed at 16060 – 16006 levels.
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