Dear
Trader…
Markets experienced a sharp decline, erasing over one and a
half percent of recent gains. After an initial uptick, the benchmarks tumbled
sharply, driven by few weak quarterly updates from the banking sector and
concerns over new virus (HMPV) cases reported in India. As a result, the Nifty
Future index slid below its 200-day exponential moving average (200 DEMA),
closing at 23,721.05. The selling pressure was widespread, with metal, energy,
and realty sectors leading the losses.
This pullback in the Nifty index, coupled with a spike in
volatility (India VIX), has disrupted the recovery trend, signaling potential
challenges ahead. The banking sector’s recent underperformance, combined with
weakness in the midcap and smallcap segments, has intensified the bearish
sentiment. However, the pharma and healthcare sectors are expected to maintain
their resilience, while other sectors may continue to face downward pressure.
Traders are advised to adjust their positions accordingly.
Nifty futures opened at 24145.10 points against the previous
close of 24092.40 and opened at a low of 23660.00 points. Nifty Future closed
with an average movement of 490.00 points and a decline of around 371.35 points
and 23721.05 points…!!
On the NSE, the midcap 100 index will decline 2.70% and smallcap
100 index is closing
decline 3.20%. Speaking of various sectoral
indices, PSU Bank, Realty, Metal, Oil and Gas, Media, Auto, Private Bank
and Bank stocks saw heavy selling on the NSE, while all other sectoral indices
also closed lower.
At the start
of intra-day trading, February gold opened at Rs.77317, fell from a high of Rs.77520
points to a low of Rs.76878 with a rise of 123 points, a trend of around Rs.77440
and March Silver opened at Rs.89326, fell from a high of Rs.91480 points to a
low of Rs.88737 with a rise of 2059 points, a trend of around Rs.91280.
Meanwhile, The
FIIs as per Monday’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 12395.04 crore against gross selling of Rs
15269.89 crore. Thus, FIIs stood as net sellers of Rs 2874.85 crore in
equities.
In the debt
segment, the gross purchase was of Rs 1813.57 crore with gross sales of Rs
1561.68 crore. Thus, FIIs stood as net buyers of Rs 251.89 crore in debt. Of
the total debt, FIIs stood as net sellers in Debt-General Limit segment at Rs
45.33 crore, they stood at net buyers in Debt-VRR segment at Rs 42.75 crore,
while net buyers in Debt-FAR segment at Rs 254.47 crore.
In the hybrid
segment, the gross buying was of Rs 15.82 crore against gross selling of Rs
8.50 crore. Thus, FIIs stood as net buyers of Rs 7.32 crore in hybrid segment.
Technically,
the important key resistances are placed in Nifty future are at 23808 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 23878 – 23909 levels. Immediate support is placed at 23676
– 23606 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 / trading, mentioned on www.nikhilbhatt.in
