Dear
Trader…
Markets
started the week on a feeble note and lost nearly one and a half percent, in
continuation to the prevailing trend.
After the initial uptick, the Nifty index gradually drifted lower as the
day progressed and finally settled at 17,205.80 levels. The selling pressure
was widespread wherein banking, auto and IT majors were beaten down badly. The broader indices too plunged sharply lower
and lost nearly 2% each.
The move shows
that participants are not comfortable, citing the US banking crisis and
reducing positions, ignoring the news of the bailout. Banking and financials
were acting as saviors earlier but the tone has changed completely now, which
is further adding to their worries. We reiterate our negative view and eyeing
the 17,077 level as immediate support in Nifty.
Traders should align their positions accordingly.
Nifty futures
opened at 17460.00 points against the previous close of 17452.55
and opened at a low of 17159.05 points. Nifty Future closed with an average
movement of 414.90 points and a decline of around 246.75 points and 17205.80
points…!!
On the NSE,
the midcap 100 index will decline 1.99% and smallcap 100 index is closing decline
2.23%. Speaking of various sectoral indices, PSU Bank, Media, PVT Bank, Bank
and Auto stocks saw heavy selling on the NSE, while all other sectoral indices
also closed lower.
At the start
of intra-day trading, April gold opened at Rs.56667, fell from a high of Rs.57078
points to a low of Rs.56353 with a rise of 864 points, a trend of around Rs.57014
and March Silver opened at Rs.63623, fell from a high of Rs.64877 points to a
low of Rs.63348, with a rise of 1967 points, a trend of around Rs.64857.
Meanwhile, Markets
opened with deep cuts and remained in negative territory for whole day as
market participants remained on sidelines ahead of the industrial growth or
Index of Industrial Production (IIP) data to be out later in the day. Traders
also remained cautious with private report stating that retail inflation in
India likely eased a bit last month but stayed above the Reserve Bank of
India’s upper threshold for a second straight month, keeping the central bank
on course for further policy tightening.
Traders
overlooked Union Minister for State for Commerce and Industry Anupriya Patel’s
statement that India’s merchandise and services exports combined in the current
financial year ending March will be close to $760-770 billion. The country’s
merchandise and services exports stood at $672 billion in the last fiscal.
Traders also paid no heed towards Australian Prime Minister Anthony Albanese’s
statement that the Economic Cooperation and Trade Agreement (ECTA) signed
between India and Australia is a transformative agreement, which will unlock
the next level of potential in trade and investment.
Technically,
the important key resistances are placed in Nifty future are at 17303 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 17404 – 17474 levels. Immediate support is placed at 17170
– 17107 levels.
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