Dear
Trader…
Indian equity benchmarks recouped
most of their losses to end flat with a negative bias on Monday, amid heavy
selling in TECK, IT and Capital Goods stocks and weak trend in Asian markets.
Key gauges made negative start and stayed weak for the better part of the day,
as traders got anxious with a private report stating that India’s headline
retail inflation rate is expected to be 7 percent in June, largely unchanged
from 7.04 percent in May, with a sharp pick-up in vegetable prices likely
nullifying the impact of the decline in prices of other food items.
Weak trade continued over the Dalal
Street in late afternoon session with private report stated that after three
consecutive quarters of raising more than $10 billion, the total funding in the
Indian startup ecosystem fell by 40 percent during Q2 CY22 to reach $6.8
billion. The decline can be attributed to a global slowdown, decrease in tech
stock valuations, inflation and geopolitical instability. However, the domestic
markets managed to pare most of losses in final hour of trade, taking support
from RBI Governor Shaktikanta Das exuded confidence that the price situation
will gradually improve in the second half of the current fiscal, and the
central bank would continue to take monetary measures to anchor inflation with
a view to achieving strong and sustainable growth.
Nifty futures opened at 16225.20 points
against the previous close of 16152.00 and opened at a low of 16106.45 points.
Nifty Future closed with an average movement of 146.75 points and a decline of
around 36.20 points and 16189.00 points…!!
On the NSE, the midcap 100 index
will rise 0.94% and smallcap 100 index is closing rise 0.95%. Speaking of
various sectoral indices only IT stocks were seen selling on the NSE, while all
other sectoral indices closed higher.
At the start of intra-day trading, August
gold opened at Rs.50709, fell from a high of Rs.50805 points to a low of Rs.50625
with a decline of 87 points, a trend of around Rs.50692 and September Silver
opened at Rs.57069, fell from a high of Rs.57289 points to a low of Rs.56879,
with a decline of 130 points, a trend of around Rs.57001.
Meanwhile, Former Securities and
Exchange Board of India (SEBI) chief Ajay Tyagi has stressed on the need for
developing a low- and medium-rated corporate bond market. The move that will
help more number of issuers across the rating spectrum to tap into it as an
alternative to bank financing. Apart from the bond market, he focused on two
broad areas — use of technology and ESG investing, which is no longer just a
fad or a buzzword.
Although he said the corporate bond
market has grown in recent years, its success has remained limited to higher
rated papers. As of now, 95 per cent of issuance is concentrated in top 3
rating categories — AAA, AA+ and AA. Similarly, 97 per cent of trading is in
these top three rating categories.
For the development of the bond
market, he suggested that the government and regulators should immediately
implement measures like backstop facility for purchase of debt securities,
credit enhancement mechanism and setting up a Development Financial Institution
(DFI) for debt financing of infrastructure. He stated these measures, which
have been in the pipeline for quite some time, need to be implemented by the government
and regulators without further delay. He also advocated for unifying the
regulatory regime for government securities (G-Secs) and corporate bonds —
both for issuance and trading.
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 15373 – 15404 levels. Immediate support is placed at 16106 – 16060 levels.
Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in
