Dear Trader…
Markets traded under pressure and lost over a percent amid mixed cues. After the flat start, the Nifty future gradually inched lower as the day progressed and finally settled around the day’s low to close at 18,103.05 levels. The decline was widespread wherein realty, metal and energy were among the top losers. The broader indices too traded in tandem and ended with a cut of over a percent each.
This decline has engulfed the gains of the last four sessions in Nifty and selling pressure in the banking index, which was acting as a savior so far, has further deteriorated the mood. And, we feel the pressure may increase below 18008 levels in Nifty. Keeping in mind the scenario, it is prudent to limit leveraged positions and wait for clarity.
Nifty futures opened at 18299.00 points against the previous close of 18317.30 and opened at a low of 18083.20 points. Nifty Future closed with an average movement of 220.10 points and a decline of around 214.25 points and 18103.05 points...!!
On the NSE, the midcap 100 index will decline 1.12% and smallcap 100 index is closing decline 0.95%. Speaking of various sectoral indices, Metal, Realty, PSU Bank, Media, Bank and PVT Bank stocks saw heavy selling on the NSE, while all other sectoral indices also closed lower.
At the start of intra-day trading, January gold opened at Rs.55620, fell from a high of Rs.56010 points to a low of Rs.55620 with a rise of 338 points, a trend of around Rs.55868 and January Silver opened at Rs.70076, fell from a high of Rs.70784 points to a low of Rs.70000, with a rise of 348 points, a trend of around Rs.70265.
Traders took a note of the Ports, Shipping and Waterways minister Sarbananda Sonowal's statement that public-private partnership in port infrastructure has been an important source of investment in the sector and the Ministry of Ports, Shipping and Waterways (MoPSW) has a pipeline of 44 projects for total investment of Rs 22,900 crore till 2024-25.
However, markets erased gains and once again fell into red terrain in afternoon deals, amid foreign fund outflows. Foreign institutional investors (FII) net sold shares worth Rs 212.57 crore on January 2, as per provisional data available on the NSE. Traders were also concerned as the IMF chief has said that one third of the global economy will be in recession this year, and warned that 2023 will be tougher than last year as the US, EU and China will see their economies slow down.
Some concern also came as the economic think tank Global Trade Research Initiative (GTRI) said that the Indian economy and exports will be moderately impacted in 2023 by weak global demand and recession in large economies and to improve its current account, the country should aim at reducing energy import bill. GTRI said that in 2022, India will pay USD 270 billion in imports of crude oil and coal, which is about 40 per cent of total merchandise import bill.
Technically, the important key resistances are placed in Nifty future are at 18188 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 18202 – 18272 levels. Immediate support is placed at 18008 – 17808 levels.
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