Dear Trader…
Extending their losses to third day, Indian equity benchmarks ended lower by around half percent on Friday dragged by Consumer Durables, Capital Goods and FMCG shares. Markets made slightly positive start but failed to hold gains and soon slipped below natural lines, as UN Conference on Trade and Development (UNCTAD) in its latest report has downgraded India’s economic growth by over 2 per cent to 4.6 percent for 2022 from earlier forecast of 6.7 percent. A decrease has been attributed to the ongoing war in Ukraine, with New Delhi expected to face restraints on energy access and prices, reflexes from trade sanctions, food inflation, tightening policies and financial instability.
Key gauges added losses in late afternoon deals, as anxiety remained among traders with S&P Global Ratings in its report said rising commodity prices, further triggered by the Russia-Ukraine war, could moderate healthy recovery of the country’s economy, and put pressure on the Reserve Bank of India (RBI) to normalise its monetary policy faster than anticipated. Traders were also worried as foreign institutional investors (FIIs) remained net sellers in the capital market as they sold shares worth Rs 1,740.71 crore on Thursday, exchange data showed.
Nifty futures opened at 17260.00 points against the previous close of 17242.80 and opened at a low of 17096.40 points. Nifty Future closed with an average movement of 199.60 points and a decline of around 26.25 points and 17216.55 points...!!
On the NSE, the midcap 100 index will decline 0.12% and smallcap 100 index is closing decline 0.49%. Speaking of various sectoral indices, the NSE saw gains in only Realty, PSU Bank, Media and Metal stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, April gold opened at Rs.52075, fell from a high of Rs.52100 points to a low of Rs.51762 with a decline of 187 points, a trend of around Rs.51891 and March Silver opened at Rs.69663, fell from a high of Rs.69663 points to a low of Rs.68576, with a decline of 588 points, a trend of around Rs.68732.
Meanwhile, the UN Conference on Trade and Development (UNCTAD) in its latest report has downgraded India’s economic growth by over 2 per cent to 4.6 percent for 2022 from earlier forecast of 6.7 percent. A decrease has been attributed to the ongoing war in Ukraine, with New Delhi expected to face restraints on energy access and prices, reflexes from trade sanctions, food inflation, tightening policies and financial instability. The report also downgraded its global economic growth projection for 2022 to 2.6 percent from 3.6 percent due to shocks from the Ukraine war and changes in macroeconomic policies that put developing countries particularly at risk.
The report said while Russia will experience a deep recession this year, significant slowdowns in growth are expected in parts of Western Europe and Central, South and South-East Asia. The report said as some of the other economies in South and Western Asia may gain some benefits from fast growth of demand and prices of energy, they will be hampered by the adversities in primary commodity markets, especially food inflation, and will be further hit by inherent financial instabilities.
Technically, the important key resistances are placed in Nifty future are at 17273 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 17303 – 17330 levels. Immediate support is placed at 17077 – 17007 levels.
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