Dear Trader…
Indian equity benchmarks traded under pressure and lost nearly a percent on Tuesday weighed by IT, TECK and Metal stocks amid weakness across global markets. After the weak start, the benchmarks drifted further lower and settled around the day’s low ahead of the industrial growth data for May and retail inflation figures for June to be out later in the day. There are expectations that India's retail inflation likely held steady in June, but well above the Reserve Bank of India's tolerance limit for a sixth month as lower fuel and cooking oil prices offset higher services and food costs.
Benchmarks extended fall in final hour of trade, amid a private report stating that though there are signs of easing commodity prices, the economic outlook for the current financial year 2022-23 remains quite uncertain and will ride completely on the wheels of private consumption and investment demand. Some concern also came as exchange data showed foreign institutional investors (FIIs) remained net sellers on Monday as they offloaded shares worth Rs 170.51 crore. Market participants overlooked Commerce and Industry Minister Piyush Goyal’s statement that the country's exports are likely to register a reasonable level of growth in the current financial year despite the global uncertainties on the trade front.
Nifty futures opened at 16126.55 points against the previous close of 16203.50 and opened at a low of 16026.00 points. Nifty Future closed with an average movement of 123.75 points and a decline of around 173.50 points and 16030.00 points...!!
On the NSE, the midcap 100 index will decline 0.45% and smallcap 100 index is closing decline 0.42%. Speaking of various sectoral indices, the NSE saw gains in only Realty stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, August gold opened at Rs.50680, fell from a high of Rs.50794 points to a low of Rs.50527 with a rise of 32 points, a trend of around Rs.50676 and July Silver opened at Rs. 56777, fell from a high of Rs.56780 points to a low of Rs.56020, with a decline of 625 points, a trend of around Rs.56300.
Meanwhile, Commerce and Industry Minister Piyush Goyal has said that the country's exports are likely to register a reasonable level of growth in the current financial year (FY23) despite the global uncertainties on the trade front. He said there are signs of a global slowdown in international trade and India is keeping a watchful eye on the developments by talking to all the export promotion councils and large exporters, and engaging with the Indian missions abroad.
The minister said ‘in the current global situation, our exports will stand based on price competitiveness and quality…We will calibrate the expectations of exports based on the ground reality.’ He also said ‘the whole world is facing severe challenges, Covid is not yet over…There is a geopolitical situation, which is not conducive, inflation worldwide is (a matter) of concern, petroleum products are still at high prices, food security concerns also are before us, and fertilizer shortages in many parts of the world are reported. In these challenging times, the fact that India prepared itself structurally and strengthened our basic readiness and capability to expand exports….Therefore a reasonable level of growth from last year can still be expected.’
Technically, the important key resistances are placed in Nifty future are at 16106 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 16188 - 16202 levels. Immediate support is placed at 16006 – 15970 levels.
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