Dear
Trader…
Indian
equity benchmarks extended their fall for the fifth straight session and ended
lower with losses of over two percent on Thursday, as investors remained
worried ahead of Index of Industrial Production (IIP) data for March and
crucial retail inflation (CPI) reading for April, which will be released later
today. A broader decline in global stocks following U.S. consumer price data
also dented investor sentiment. The markets made a gap down opening, as traders
were concerned with private report that tightening of policy rates by major
central banks, including the RBI, would adversely impact demand in the next 6-8
months and slow down the recovery process.
Benchmarks
enlarged their losses in late afternoon session, amid a private report stating
that India Inc stares at a further decline in operating margins and
profitability in the coming quarters owing to the twin blows of a depreciation
in the value of the rupee against major currencies and a rise in interest rates
after a surprise intervention by the Reserve Bank of India (RBI) last week.
Adding to the pessimism, FPIs have continued their selling spree for seven
straight months now. According to NSE data, FPIs sold Rs 3,609.35 crore on May
11, 2022 whereas domestic investors bought Rs 4,181.2 crore worth of equities.
Further, a weaker rupee erodes FPI returns for Indian equities.
Nifty
futures opened at 16020.00 points against the previous close of 16177.95 and
opened at a low of 15733.00 points. Nifty Future closed with an average
movement of 305.85 points and a decline of around 359.95 points and 15818.00 points…!!
On the NSE, the
midcap 100 index will decline 2.33% and smallcap 100 index is closing decline 1.87%.
Speaking of various sectoral indices, PSU Bank, Metal, PVT Bank and Bank stocks
saw heavy selling on the NSE, while all other sectoral indices also closed
lower.
At the start
of intra-day trading, June gold opened at Rs.50939, fell from a high of Rs.50946
points to a low of Rs.50450 with a decline of 346 points, a trend of around Rs.50476
and May Silver opened at Rs.60550, fell from a high of Rs.606555 points to a
low of Rs.59001, with a decline of 1289 points, a trend of around Rs.59463.
Meanwhile,
the British government said that the free trade agreement (FTA) negotiations
between India and the UK have resulted in the draft treaty text advancing
across the majority of chapters at the end of the third round of talks. The
Department for International Trade (DIT) issued a ‘joint outcome statement’ at
the end of the latest round of technical talks between the negotiators on both
sides.
The experts
held 60 separate sessions in-person and virtually to cover 23 policy areas,
with the fourth round of talks now scheduled to be hosted by the UK next month.
On May 06, 2022, the Republic of India and the United Kingdom concluded the
third round of talks for an India-UK FTA. For this round of negotiations, the
draft treaty text was advanced across the majority of chapters.
Technically, the important key resistances are placed in Nifty future are at 15909 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 16006 – 16060 levels. Immediate support is placed at 15770 – 15707 levels.
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