Dear
Trader…
Indian
equity benchmarks extended their fall for the fourth straight session amid
choppy trade on Wednesday, as participants waited IIP (Index of Industrial
Production) and CPI (Consumer Price Inflation) data, due to be released
tomorrow. The indices started higher but
soon gave up all of their respective gains, as traders turned worried as data released
by the RBI showed that India’s outward foreign direct investment (OFDI) nearly
halved to $3.39 billion in April on an annual basis. The OFDI stood at $6.71
billion in April 2021.
Some
cautiousness came in with a private report that the goods and services tax
(GST) council is mulling a 28 per cent tax on crypto currencies, at par with
the current GST on casinos, betting and lottery. Traders also took a note of
ICRA Ratings’ report that in spite of a sharp 40 per cent decline in bond
issuances, states have been forced to pay more for their market borrowings as
the weighted average interest rate touched a record 7.69 per cent at the latest
auctions of state government securities.
Benchmarks
extended losses in afternoon deals, as sentiments were fragile as foreign
investors have sold Indian equities worth $1.82 billion so far this month,
shedding stocks worth $374 million in the fourth straight day of net selling on
May 10. Traders were also cautious after private report stated that a majority
of the Indian consumers are bullish about their financial situation in the next
one year, but have raised concerns over rising cost of goods and services,
which is affecting their purchasing decisions.
Nifty
futures opened at 16256.70 points against the previous close of 16247.10 and
opened at a low of 15993.00 points. Nifty Future closed with an average
movement of 321.70 points and a decline of around 43.60 points and 16203.50 points…!!
On the NSE, the
midcap 100 index will decline 0.36% and smallcap 100 index is closing decline 2.91%.
Speaking of various sectoral indices, the NSE saw gains in only Realty, Bank,
PVT Bank, Financial Services and Metal stocks, while all other sectoral indices
closed lower.
At the start
of intra-day trading, June gold opened at Rs.50449, fell from a high of Rs.50780
points to a low of Rs.50332 with a rise of 114 points, a trend of around Rs.50700
and May Silver opened at Rs.60525, fell from a high of Rs.61274 points to a low
of Rs.60224, with a rise of 513 points, a trend of around Rs.61131.
Meanwhile,
Reserve Bank of India (RBI) in its latest report showed that India’s outward
foreign direct investment (OFDI) nearly halved to $3398.92 million in April on
an annual basis. The OFDI stood at $6714.89 million in April 2021.
On
sequential basis too, the outward investment from India in April was lower
compared to $3446.01 million in March 2022. Of the $3398.92 million OFDI, the
equity component was $544.87 million and loans amounted to $764.25 million.
Indian
companies issued guarantees worth $2089.80 million in April 2022, as compared
to $3643.56 million in April 2021. The Reserve Bank of India further said the
data is provisional and subject to change based on online reporting by banks.
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 16160 – 16060 levels.
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