Dear
Trader…
Nifty future witnessed a sharp correction and fell below the
22100 zone after consolidating for last seven days. The index closed with a
loss of 370 points (-1.65%) at 22076 levels. Broader market saw persistent
selling and tumbled 4-5%. All sectors ended in red with Metals, Realty, Pharma,
Oil & Gas, and PSU bank down 5-6%.
India & US inflation data came slightly below
expectations, thus dampening the sentiments. Markets failed to maintain their
momentum amid intense selling seen in mid and small-cap. Ongoing scrutiny from
SEBI, pending outcome of MF stress test, and expensive valuation post smart
rally seen in last few months led to profit booking.
We expect the sluggishness in the market to continue in the
near term with Nifty’s major support 21808 zone. Key event to watch out is
India’s WPI inflation which will released tomorrow.
Nifty futures opened at 22505.00 points against the previous
close of 22447.05 and opened at a low of 22025.00 points. Nifty Future closed
with an average movement of 490.00 points and a decline of around 370.60 points
and 22076.45 points…!!
On the NSE, the midcap 100 index will decline 4.40% and smallcap
100 index is closing
decline 5.28%. 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.65520, fell from a high of Rs.65660
points to a low of Rs.65450 with a rise of 179 points, a trend of around Rs.65660
and May Silver opened at Rs.73810, fell from a high of Rs.74191 points to a low
of Rs.73700 with a rise of 341 points, a trend of around Rs.74191.
Meanwhile, The
FIIs as per Wednesday’s data were net sellers in equity segment, while they
were net buyers in debt segment, according to data released by the NSDL. In
equity segment, the gross buying was of Rs 15245.93 crore against gross selling
of Rs 15361.53 crore. Thus, FIIs stood as net sellers of Rs 115.60 crore in
equities.
In the debt
segment, the gross purchase was of Rs 4114.61 crore with gross sales of Rs
1637.54 crore. Thus, FIIs stood as net buyers of Rs 2477.07 crore in debt. In
the hybrid segment, the gross buying was of Rs 43.45 crore against gross
selling of Rs 99.41 crore. Thus, FIIs stood as net sellers of Rs 55.96 crore in
hybrid segment.
Technically,
the important key resistances are placed in Nifty future are at 22108 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 22188 – 22303 levels. Immediate support is placed at 21880
– 21808 levels.
The securities quoted are for illustration only
and are not recommendatory.
Investment in securities market are subject to market
risks. Read Disclaimer and related all the documents carefully before
investing, mentioned on www.nikhilbhatt.in
