Dear
Trader…
The market began the week on a weak note, losing over a
percent as the ongoing corrective trend persisted. Following a gap-down
opening, the Nifty steadily declined throughout the session, closing near the
day’s low at the 22,846.45 level. The sell-off was broad-based, with IT, metal,
and pharma sectors taking significant hits. Broader indices bore the brunt of
the decline, dropping between 2.9% and 4%.
This trend highlights the dominance of bears, who are
reacting sharply to any earnings disappointments. In addition to selling
pressure from FIIs, global market caution is adding to the downside momentum.
We are now eyeing 22606 as the next crucial support and its break would further
deteriorate the situation. We thus maintain our view to focus more on risk
management, particularly in the midcap and small-cap segments and avoid adding
to the loss-making trading positions.
Nifty futures opened at 22972.00 points against the previous
close of 23113.90 and opened at a low of 22809.00 points. Nifty Future closed
with an average movement of 219.90 points and a decline of around 267.45 points
and 22846.45 points…!!
On the NSE, the midcap 100 index will decline 2.75% and smallcap
100 index is closing decline 3.84%. Speaking of various sectoral
indices, Media, IT, Metal, Pharma and Healthcare 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.79859, fell from a high of Rs.80151
points to a low of Rs.79664 with a rise of 104 points, a trend of around Rs.80130
and March Silver opened at Rs.91388, fell from a high of Rs.91388 points to a
low of Rs.90221 with a decline of 446 points, a trend of around Rs.91153.
Meanwhile, The
FIIs as per Monday’s data were net sellers in both equity and debt segments,
according to data released by the NSDL. In equity segment, the gross buying was
of Rs 11537.19 crore against gross selling of Rs 14403.49 crore. Thus, FIIs
stood as net sellers of Rs 2866.30 crore in equities.
In the debt
segment, the gross purchase was of Rs 1248.85 crore with gross sales of Rs
1527.99 crore. Thus, FIIs stood as net sellers of Rs 279.14 crore in debt. Of
the total debt, FIIs stood as net sellers in Debt-General Limit segment at Rs
646.56 crore, they stood at net sellers in Debt-VRR segment at Rs 502.39 crore,
while net buyers in Debt-FAR segment at Rs 869.81 crore.
In the
hybrid segment, the gross buying was of Rs 32.41 crore against gross selling of
Rs 56.09 crore. Thus, FIIs stood as net sellers of Rs 23.68 crore in hybrid
segment.
Technically, the important key resistances are placed in Nifty future are at 22909 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 22979 – 23008 levels. Immediate support is placed at 22676 – 22606 levels.
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