Dear
Trader…
Indian
equity benchmarks ended lower for a second straight day on Monday, following
weak trade in Asian market peers as global sell-off triggered by aggressive US
Fed tightening and China covid fears. The markets had a gap down opening and
showed weakness throughout the session, as a private report cut India’s 2022-23
economic growth forecast by 70 basis points to 7 percent, citing slowing global
growth due to high commodity prices, and weak local demand because of energy
price hikes, inflationary pressures and a struggling labour market.
During the
afternoon session, markets traded at day’s low as sentiments were fragile with
the oil ministry’s Petroleum Planning & Analysis Cell (PPAC) in its latest
data has showed that India’s crude oil import bill nearly doubled to $119
billion in the fiscal year that ended on March 31, as energy prices soared
globally following the return of demand and war in Ukraine. Traders overlooked
a survey by economic think-tank NCAER stating that business confidence index
(BCI) improved in the January-March period of this year (Q4FY22) and would
remain buoyant in the coming months. It said the BCI increased for the third
consecutive quarter by 14.9 per cent on a quarter-on-quarter basis from 124.4
points in October-December period of 2021–22 to 142.9 points in the fourth
quarter.
Nifty
futures opened at 17005.00 points against the previous close of 17177.75 and
opened at a low of 16875.00 points. Nifty Future closed with an average
movement of 175.15 points and a decline of around 195.85 points and 16981.90 points…!!
On the NSE, the
midcap 100 index will decline 1.92% and smallcap 100 index is closing decline 2.42%.
Speaking of various sectoral indices, the NSE saw gains in only Bank and PVT
Bank stocks, while all other sectoral indices closed lower.
At the start
of intra-day trading, April gold opened at Rs.52033, fell from a high of Rs.52115
points to a low of Rs.51429 with a decline of 819 points, a trend of around Rs.51442
and March Silver opened at Rs.66000, fell from a high of Rs.66040 points to a
low of Rs.64619, with a decline of 1846 points, a trend of around Rs.64700.
Meanwhile,
Credit rating agency ICRA in its latest report has revised the outlook for
residential real estate for the current fiscal (FY23) to stable from negative
on an improved demand. The revision in the outlook has been supported by
multi-year high sales which in turn are driven by increasing preference for
home ownership, improved affordability, all-time-low home loan interest rate,
among other factors. Housing sales in top seven cities are expected to grow by
3 per cent this fiscal.
According to
the report, the sharp recovery in demand in the aftermath of Covid has improved
pricing flexibility, particularly in completed projects. In FY23 as well, it
said the prices are expected to rise, depending on the project specific sales
traction, to compensate for the rise in construction cost seen in recent
quarters. Healthy demand prospects and pricing flexibility in completed projects
can help developers to maintain profitability margins.
Technically, the important key resistances are placed in Nifty future are at 17303 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 17373 – 17404 levels. Immediate support is placed at 17107 – 17007 levels.
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