Dear
Trader…
Domestic
indices extended losses for second consecutive day in line with sell off in
global markets triggered by 60% fall in US based Silicon Valley Banks. Nifty
future opened with deep cuts and remained in negative territory to close with
loss of 192 points (-1.09%) at 17452 levels. All sectors ended in red with
major selling seen in banking stocks. Fall in the select US banks added to the
overall Global uncertainty regarding the quantum of the next Fed rate hike.
US jobs data
that would be released late on Friday will also be crucial for upcoming Fed’s
meeting as it could also influence the Fed rate decision. Expect the volatility
to continue next week as well. On the domestic front, Feb inflation data would
be released while on the global front, ECB meeting would be key event to watch
out for.
Nifty futures
opened at 17489.80 points against the previous close of 17645.10
and opened at a low of 17367.00 points. Nifty Future closed with an average
movement of 122.90 points and a decline of around 192.55 points and 17452.55
points…!!
On the NSE,
the midcap 100 index will decline 0.75% and smallcap 100 index is closing decline
0.89%. Speaking of various sectoral indices, the NSE saw gains in only, FMCG stocks,
while all other sectoral indices closed lower.
At the start
of intra-day trading, April gold opened at Rs.55325, fell from a high of Rs.55500
points to a low of Rs.55270 with a rise of 182 points, a trend of around Rs.55483
and March Silver opened at Rs.61750, fell from a high of Rs.62095 points to a
low of Rs.61353, with a rise of 50 points, a trend of around Rs.62034.
Meanwhile, traders
got concerned after India Ratings in a report projected just 4 per cent Gross
Domestic Product (GDP) growth for India for the fourth quarter and said the
final growth numbers for the full year (FY23) will be lower than the second
advance estimate of 7 per cent. Weak trade persisted over the Dalal Street
during the entire day, amid negative cues from global markets as Federal
Reserve Chair Jerome Powell during a second day of congressional testimony said
that policymakers hadn’t yet made up their minds on the size of the
interest-rate increase later this month.
Sentiments
were downbeat, amid a private report stating that the growth in the loans to
the industry has stagnated with the banking sector clocking an 8.7% growth in
January. The moderation is on account of the slower pace of growth in MSME
credit, which was the main driver of the growth in loans since April. During
the second half of the trading session, indices extended their losses to end
lower.
Technically, the important key resistances are placed in Nifty future are at 17606 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 17676 – 17808 levels. Immediate support is placed at 17373 – 17303 levels.
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