Dear Trader…
Indian equity benchmarks ended in red on Wednesday in line with tepid global markets as inflation and recession fears continued to hurt sentiment. Markets made gap-down opening as continued selling in FIIs weighted on market sentiments. Foreign institutional investors (FIIs) sold shares worth a net Rs 1,244.44 crore on June 28. Some cautiousness came in with a private report that after a gap, the prices of select varieties of pulses have started rising for the past few days due to a delay in the onset of the southwest monsoon over major growing regions of Madhya Pradesh, Maharashtra, and Gujarat.
However, key gauges trimmed most of their losses in late afternoon deals, as traders took some support as Union Minister Bhanu Pratap Singh Verma emphasised the Micro, Small & Medium Enterprise (MSME) sector's important role in making India a $5-trillion economy and said that the government will remove all the barriers in credit flow to this sector. Some support also came as the GST Council approved changes in tax rates on some goods and services while allowing states to issue an e-way bill for intra-state movement of gold and precious stones.
Nifty futures opened at 15701.10 points against the previous close of 15847.70 and opened at a low of 15678.00 points. Nifty Future closed with an average movement of 174.15 points and a decline of around 82.50 points and 15765.20 points...!!
On the NSE, the midcap 100 index will decline 0.44% and smallcap 100 index is closing decline 0.56%. Speaking of various sectoral indices, the NSE saw gains in only Metal, Realty and Auto stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, August gold opened at Rs.50779, fell from a high of Rs.51015 points to a low of Rs.50640 with a rise of 167 points, a trend of around Rs.50989 and July Silver opened at Rs.59280, fell from a high of Rs.59700 points to a low of Rs.59105, with a rise of 117 points, a trend of around Rs.59656.
Meanwhile, Rating agency ICRA in its latest report titled ‘State Government Finances- Weekly SDL’ has said that market borrowings by 18 state governments/Union Territory (UT) stood at Rs 1,102 billion in Q1 FY2023, nearly 42% lower than the indicated Rs 1,902 billion. On a Y-o-Y basis, the borrowings in Q1 FY2023 were 23.7% lower than Rs 1,446 billion in Q1FY2022.
ICRA said this reflected a comfortable cash flow position of the state governments led by a highly back-ended release of the tax devolution to the states in FY2022 as well as the changes in the borrowing permission for FY2023 granted by the Government of India (GoI) to the state governments.
In the last auction of Q1 FY2023, nine states raised Rs 195 billion through state development loans (SDLs) on June 28, 2022, nearly 4% higher than the indicated amount of Rs 188 billion for the week. Andhra Pradesh (AP) and Telangana together borrowed additional Rs 30 billion and Assam, Haryana and Madhya Pradesh (MP) raised Rs 70 billion SDLs even though they had not indicated to participate in weekly auction.
Technically, the important key resistances are placed in Nifty future are at 15830 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 15909 – 16006 levels. Immediate support is placed at 15707 – 15676 levels.
Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in
