Dear Trader…
Indian equity benchmarks extended fall for the third straight session on Friday tracking a weak trend in global equities amid escalating tensions between Russia and Ukraine. Markets made a gap-down opening and stayed in red for whole day, as traders remained cautious with a private report that India's trade and current account deficits are likely to widen, putting pressure on the rupee, as global oil prices surge and the domestic economy reopens from a third wave of the pandemic.
However, key gauges recouped some of their losses in afternoon deals, as traders took some support as India’s service sector activity improved in the month of February, as COVID-19 cases declined and restrictions were lifted. But, markets failed to hold recovery and ended lower as some pessimism remained among traders with private report stated that the value of foreign portfolio investors' (FPI) holdings in domestic equities reached $654 billion in three months ended December 2021, a drop of nearly 2 per cent from the preceding quarter.
Nifty futures opened at 16305.10 points against the previous close of 16505.60 and opened at a low of 16152.00 points. Nifty Future closed with an average movement of 327.35 points and a decline of around 239.00 points and 16266.60 points...!!
On the NSE, the midcap 100 index will decline 2.08% and smallcap 100 index is closing decline 1.78%. Speaking of various sectoral indices, the NSE saw gains in only IT stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, April gold opened at Rs.51902, fell from a high of Rs.52116 points to a low of Rs.51800 with a rise of 290 points, a trend of around Rs.52060 and March Silver opened at Rs.67969, fell from a high of Rs.68495 points to a low of Rs.67969, with a rise of 446 points, a trend of around Rs.68350.
Meanwhile, Federation of Automobile Dealers Associations (FADA) has said that domestic passenger vehicle (PV) retail sales declined 8 per cent in February 2022 as the companies continued to suffer production loss due to chip shortage. The PV sales dropped to 2,38,096 units in February, down 7.84 per cent from 2,58,337 units in February 2021.
FADA has indicted that two-wheeler sales in February 2022 declined 10.67 per cent to 9,83,358 units, compared with 11,00,754 units in February 2021. Tractor sales stood at 50,304 units last month, down 18.87 per cent from 62,004 units in February 2021. Commercial vehicle sales, however, witnessed a growth of 7.41 per cent last month at 63,797 units, as against 59,395 units in the year-ago month. The total sales across categories last month declined by 9.21 per cent to 13,74,516 units from 15,13,894 units in February 2021.
The industry body stated that even though the PV segment saw some launches and slight respite in supply due to better production, it was not enough to meet customer demand. Vehicle waiting period thus remains similar to what it was in the past few months. It warned that the Russia-Ukraine conflict could further impact the production of semiconductors. It noted that Russia is one of the largest producers of rare-earth metals, especially Palladium, which is an essential metal for semiconductors. Ukraine, on the other hand, is one of the biggest producer and exporter of neon gas, which is used in the manufacturing of semiconductors.
Technically, the important key resistances are placed in Nifty future are at 16303 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 16373 – 16404 levels. Immediate support is placed at 16006 – 15808 levels.
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