Dear
Trader…
The 30-share BSE benchmark Sensex declined 4,390 points or
5.74% to settle at 72,079. The broader NSE Nifty future dropped 1,433 points or
6.12% to end at 21,975.
Meanwhile, the market capitalisation of all listed companies
on BSE declined by Rs 29.9 lakh crore to Rs 396 lakh crore.
Following the trends, Adani Group stocks closed 10-21% lower.
While from the Sensex pack, NTPC, SBI, L&T, and Power Grid closed 12-15%
lower.
Barring the Nifty FMCG index, all the sectoral indices closed
in deep red. Nifty Bank fell 8%, Realty fell 9.6%, PSU Bank fell 15%, while Oil
& Gas fell 11.8% and Metal fell 10.6%. Meanwhile, smallcap and midcap
closed 8.2% and 7.9% lower, respectively.
During the day, indices fell as much as 8.5%, poised for
their worst session since the onset of the Covid-19 pandemic. They had jumped
over 3% on Monday after exit polls projected that the BJP-led alliance would
likely get a two-thirds majority in the lower house.
Global
Markets –
Global shares eased on Tuesday as investors considered the
prospect that the U.S. economy’s “exceptionalism” may be starting to
unwind as manufacturing activity there further weakened, in turn pushing the
dollar to multi-month lows.
The MSCI All-World index was last down 0.2%. Stocks in Europe
also took a breather, pushing the STOXX 600 lower for the first time in four
days, down 0.5%. US stock futures, the S&P 500 e-minis, were down
0.2%, suggesting a modest decline at the open on Wall Street.
Rupee
Weakens – The Indian rupee slumped on Tuesday.
It closed at 83.53 against the US dollar, down 0.47% on the day — its worst
single-day percentage fall since February last year.
Nifty futures opened at 23000.00 points against the previous
close of 23407.90 and opened at a low 21265.00 points. Nifty Future closed with
an average movement of 1904.00 points and a decline of around 1433 points and
closed 21975.00 points…!!
Oil
Falls – Oil prices fell over $1 on Tuesday,
extending losses from a four-month low in the previous session, as investors
worried about supply rising later in the year amid signs of weakening US demand.
Brent crude futures fell $1.4 cents, or 1.8%, to $76.97 a barrel. Brent on
Monday closed below $80 for the first time since February 7, after falling over
3%. U.S. West Texas Intermediate crude futures eased $1.5 cents, or 2%, to
$72.72 a barrel. WTI on Monday fell by 3.6% to settle near a four-month low.
At the start of intra-day trading, June gold opened at Rs.72150,
fell from a high of Rs.72560 points to a low of Rs.71877 with a decline of 133 points,
a trend of around Rs.72079 and July Silver opened at Rs.92107, fell from a high
of Rs.92772 points to a low of Rs.89592 with a decline of 1353 points, a trend
of around Rs.90711.
Meanwhile,
The unexpected outcome of the general election
sparked a wave of fear selling in the domestic market, reversing the recent
substantial rally.
The sectors that have topped in the past five years,
including power, capital goods, real estate, and industrials, are advised to
exercise caution in the near term. Nevertheless, the long-term growth prospects
for these sectors remain robust.
Technically, the
important key resistances are placed in Nifty future are at 21975 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 22008 – 22188 levels. Immediate support is placed at 22676 –
22606 levels.
Past Performance is not an Indicator of Future Returns. 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
