Dear
Trader…
Indian
equity benchmarks ended lower by around a percent on Wednesday amid a global
sell-off, triggered by concerns about world economic growth. All sectors were
in the red, with Power, Utilities and Telecom shares being the biggest
draggers. Key gauges made a negative start and showed weakness throughout the
session, as traders were cautious with the International Monetary Fund’s (IMF)
Asia and Pacific Department’s Acting Director Anne-Marie Gulde-Wolf stating
that the surge in oil prices due to the Ukrainian war has pushed up inflation
in India, which needs monetary tightening and measures to address structural
weaknesses to improve growth potential.
Indices
continued to show a sluggish trend in late afternoon session as India reports
2,927 fresh cases and 2,252 recoveries, in the last 24 hours. Besides, stock
exchange data showed foreign institutional investors continued their selling
spree, offloading shares worth Rs 1,174.05 crore on Tuesday. Market
participants largely overlooked CBDT Chairman J B Mohapatra’s statement that
the net direct tax collection has registered a whopping 49.02 per cent growth
to over Rs 14.09 lakh crore in the 2021-22 fiscal as the country’s economy
‘bounced back’ after being hit by the COVID-19 pandemic.
Nifty
futures opened at 17078.00 points against the previous close of 17204.00 and
opened at a low of 16957.85 points. Nifty Future closed with an average
movement of 156.65 points and a decline of around 144.95 points and 17059.05 points…!!
On the NSE, the
midcap 100 index will decline 0.86% and smallcap 100 index is closing decline 0.61%.
Speaking of various sectoral indices, the NSE saw gains in only Media stocks,
while all other sectoral indices closed lower.
At the start
of intra-day trading, April gold opened at Rs.51545, fell from a high of Rs.51636
points to a low of Rs.51200 with a decline of 23 points, a trend of around Rs.51561
and March Silver opened at Rs.64950, fell from a high of Rs.65318 points to a
low of Rs.64508, with a rise of 138 points, a trend of around Rs.65106.
Meanwhile,
the International Monetary Fund’s (IMF) Asia and Pacific Department’s Acting
Director Anne-Marie Gulde-Wolf said that the surge in oil prices due to the
Ukrainian war has pushed up inflation in India, which needs monetary tightening
and measures to address structural weaknesses to improve growth potential. She
said according to estimates, the country’s economy is likely to grow at 8.2 per
cent in 2022-23, down 0.8 per percentage points. She added ‘So while still
strong, it is a significant downgrade. We really see the difficult policy
tradeoff for policymakers supporting the worldwide controlling of inflation,
which has already started going up’.
She said
‘the reason why inflation has gone up is really the spillovers from the war in
Ukraine, where India is particularly dependent on oil and commodity imports’.
She added ‘in the short run, we think a commodity fiscal stance is appropriate,
supporting vulnerable households and putting focus on infrastructure
investment’. She recommended monetary tightening and measures to check
structural weaknesses. She also said ‘well-communicated monetary policy actions
are needed but probably some monetary tightening’.
Technically, the important key resistances are placed in Nifty future are at 17107 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 17177 – 17202 levels. Immediate support is placed at 16878 – 16808 levels.
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