Dear Trader…
Indian equity benchmarks ended Friday’s session near intraday lows, with Sensex and Nifty breaching their crucial 54,350 and 16,250 levels, respectively, following weakness in global counterparts and fear of faster policy tightening to combat inflation. The bourses started the session in red and remained under pressure for whole day, as investors got cautious with External Affairs Minister S Jaishankar stating that the Russia-Ukraine war has thrown up a crisis of fuel, food and fertiliser that will lead to hunger situations and have a very significant inflationary impact.
Further, in the last hours of the trade, selling got intensified on the counters, as domestic sentiments weakened further as the United Nations said Foreign Direct Investment inflows to India declined $19 billion to $45 billion in 2021 but the country still remained among the top 10 global economies for FDI last year. Traders also remained cautious as basket of crude oil that India buys has hit a decade high of $121 per barrel, but retail selling prices of petrol and diesel continue to remain frozen. The Indian basket on June 9, 2022 touched $121.28, matching levels seen in February/March 2012.
Nifty futures opened at 16284.40 points against the previous close of 16475.45 and opened at a low of 16185.00 points. Nifty Future closed with an average movement of 136.00 points and a decline of around 267.45 points and 16208.00 points...!!
On the NSE, the midcap 100 index will decline 0.83% and smallcap 100 index is closing decline 1.10%. Speaking of various sectoral indices, IT, Financial Services and PVT Bank stocks saw heavy selling on the NSE, while all other sectoral indices also closed lower.
At the start of intra-day trading, August gold opened at Rs.50900, fell from a high of Rs.50926 points to a low of Rs.50420 with a decline of 320 points, a trend of around Rs.50685 and July Silver opened at Rs.61147, fell from a high of Rs.61295 points to a low of Rs.60250, with a decline of 718 points, a trend of around Rs.60693.
Meanwhile, sounding a note of caution, Chief Economic Adviser V Anantha Nageswaran has said that the cryptocurrencies have yet to pass the test to become fiat currency and at the same time it would be difficult to regulate them. He further said that unlike fiat money, cryptocurrencies cannot satisfy basic requirements such as having store value, widespread acceptability, and unit of account.
Referring to decentralized finance (Defi), he said ‘in my opinion, while it is considered innovation, I would reserve my judgment whether it is truly innovative or truly disruptive in a positive sense or is it something that we will come to regret. Nageswaran said that he agreed with RBI Deputy Governor T Rabi Sankar who had been saying that as of now there appeared to be a case of regulatory arbitrage about cryptocurrencies and decentralized finance rather than a case of true financial innovation.
Technically, the important key resistances are placed in Nifty future are at 16272 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 16303 – 16373 levels. Immediate support is placed at 16006 – 15808 levels.
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