Dear Trader…
Domestic equity witness high volatility amid mixed global cues. Nifty opened positive but moved between gains and losses throughout the day. The index ended the session with minor loss of 19 points at 16,240 levels. Broader market too ended in red with loss of ~0.3%. Among sectors, except FMCG and Pharma, all other indices ended with negative bias. Realty and PSU bank were top laggards down more than 1%.
Global markets were mixed as rebound in stocks fizzled out after investors turned cautious over the hawkish comments from U.S. Federal Reserve. Also weak economic data globally raised concerns about the economic growth outlook.
Markets struggled to maintain its positive momentum as increase in volatility and absence of follow up buying at higher level led benchmark to close in negative territory. However Nifty was able to hold above key levels of 16,200 zone. We expect market to consolidate for some more session until FIIs selling reduces and India VIX cool downs below 20 levels.
Nifty futures opened at 16309.90 points against the previous close of 16254.95 and opened at a low of 16167.80 points. Nifty Future closed with an average movement of 195.55 points and a decline of around 17.95 points and 16237.00 points...!!
On the NSE, the midcap 100 index will decline 0.22% and smallcap 100 index is closing decline 0.39%. Speaking of various sectoral indices, the NSE saw gains in only FMCG and Pharma stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, June gold opened at Rs.50120, fell from a high of Rs.50225 points to a low of Rs.49863 with a decline of 102 points, a trend of around Rs.50071 and May Silver opened at Rs.60752, fell from a high of Rs.61320 points to a low of Rs.60510, with a rise of 457 points, a trend of around Rs.60699.
Meanwhile, Reserve Bank of India (RBI) in its article has said that improving infrastructure, ensuring low and stable inflation, and maintaining macroeconomic stability is critical for reviving animal spirits and spurring growth. It noted that the Indian economy consolidated its recovery, with most constituents surpassing pre-pandemic levels of activity.
It said heightened global risks stemming from weakening growth, elevated inflation, supply disruptions on account of geopolitical spillovers and financial market volatility stemming from synchronized monetary tightening pose near-term challenges. It also said India faces challenges in building from the scars of the pandemic through larger investments in health and productivity of the human capital.
Further, it said that with an acceleration in the pace of digitalization, the footprint of the unicorn ecosystem in India is expanding, reflecting a rapidly changing economy. In order to achieve a higher growth path on a sustainable basis, it said private investment needs to be encouraged through higher capital expenditure by the government which crowds in private investment.
Technically, the important key resistances are placed in Nifty future are at 16303 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 16373 – 16404 levels. Immediate support is placed at 16060 – 16006 levels.
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