Dear Trader…
Indian equity benchmarks gave up their early gains and ended lower by over half percent on Wednesday as investors turned cautious ahead of the key US retail inflation data due later tonight. Benchmark indices made optimistic start and stayed in green in first half of trading session, as traders took encouragement with the government data showed that India's factory output measured by the Index of Industrial Production (IIP) posted a robust growth of 19.6 per cent in May 2022, sharply higher from 7.1 per cent recorded in the previous month. Also, India's retail inflation eased marginally to 7.01 per cent in June from 7.04 per cent in the previous month helped by softening crude and edible oil prices.
However, key gauges entered into negative terrain in the afternoon session, as investor sentiments got hit a with a private report that the country's current account deficit is likely to touch $105 billion or 3 per cent of the GDP this fiscal, mainly due to continuously widening trade deficit. Some concern also came after private report lowered its India gross domestic product growth projection for 2023 by 70 basis points from 5.4% to 4.7% as economic recovery faces several headwinds. Adding to the pessimism, domestic rating agency ICRA in its latest report has said that rising bond yields will force banks to report Mark-To-Market (MTM) losses of up to Rs 13,000 crore on their investment portfolios in the April-June quarter (Q1FY23).
Nifty futures opened at 16097.85 points against the previous close of 16044.25 and opened at a low of 15962.70 points. Nifty Future closed with an average movement of 179.75 points and a decline of around 53.35 points and 16030.00 points...!!
On the NSE, the midcap 100 index will rise 0.16% and smallcap 100 index is closing rise 0.22%. Speaking of various sectoral indices, the NSE saw gains in Pharma, FMCG, Metal, Media, Realty and PSU Bank stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, August gold opened at Rs.50431, fell from a high of Rs.50628 points to a low of Rs.50160 with a decline of 177 points, a trend of around Rs.50280 and July Silver opened at Rs. 56485, fell from a high of Rs.56762 points to a low of Rs.56302, with a rise of 19 points, a trend of around Rs.56485.
Meanwhile, with consumer price inflation remaining high, Finance Minister Nirmala Sitharaman has said the government is watchful of the price situation and will continue the pointed attack on inflation. Retail inflation in June eased to 7.01 per cent in June. The print was lower than 7.04 per cent recorded in May but still higher than RBI's comfort level of 6 per cent.
She stated ‘As the RBI has estimated, till the start of the second half of the year, both the central bank and the government will have to be mindful. We will have to be mindful and watchful of how the price movement is. I will keep monitoring item by item to rein in prices for anything that goes haywire. This pointed attack on inflation will need to continue.’
Besides, ‘I see monsoon being favourable to agriculture. (Farm) Production will be good and rural demand will remain intact,’ Sitharaman said, remaining cautiously optimistic about inflation.
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 16160 - 16202 levels. Immediate support is placed at 15909 – 15838 levels.
Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in
