Dear Trader…
Domestic equity benchmark indices settled Wednesday's trade marginally in the red as investors await the US Fed monetary policy review meeting's outcome. With Wednesday's slump, the indices declined in the eight out of the past nine sessions. Traders were worried as foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 4,502.25 crore on June 14, data available with NSE suggested. However, downside remained capped as Chief Economic Adviser (CEA) V Anantha Nageswaran said India would become a $5 trillion economy by 2026-27 and $10 trillion by 2033-34. Nageswaran said India is relatively better placed than other emerging economies.
On the sectoral front, telecom will be in focus government cleared the auction for 5G airwaves paving the way for auction and commercial launch of next generation telecom services this year. On the global front, Asian markets were trading mixed ahead of the Federal Reserve’s decision of how severely it will hike interest rates to curb inflation in the United States.
Nifty futures opened at 15739.75 points against the previous close of 15737.45 and opened at a low of 15799.00 points. Nifty Future closed with an average movement of 108.00 points and a decline of around 36.45 points and 15701.00 points...!!
On the NSE, the midcap 100 index will rise 0.35% and smallcap 100 index is closing rise 0.60%. Speaking of various sectoral indices, the NSE saw gains in only Auto, Pharma, Financial Services and bank stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, August gold opened at Rs.50261, fell from a high of Rs.50814 points to a low of Rs.50211 with a rise of 582 points, a trend of around Rs.50777 and July Silver opened at Rs.59800, fell from a high of Rs.60925 points to a low of Rs.59800, with a rise of 1254 points, a trend of around Rs.60755.
Meanwhile, S&P Global Commodity Insights in a note has said that India's fuel consumption was up 860,000 barrels per day or 22 per cent year-on-year in May 2022 from a low base in 2021. It said the demand for May was some 80,000 barrel higher than its growth forecast, partly due to stronger-than-expected demand for transportation and the government's announcement of a cut excise duty on petrol by a record Rs 8 per litre and that on diesel by Rs 6 per litre, which provided some support for demand.
The note stated that on a year-on-year basis, demand growth was driven by diesel, petrol and other minor products, which were up 416,000 barrels per day, 282,000 barrels per day and 161,000 barrels per day, respectively. Kerosene/jet fuel and fuel oil also posted positive growth, rising 67,000 barrels and 25,000 barrels, respectively. But growth was partially offset by naphtha, which fell 95,000 barrels per day, with LPG demand remaining steady.
It further said the new tax regime on petrol and diesel could result in a loss of about Rs 1 trillion to the government in annual revenue due to the lower collection. The more immediate problem is sky-high inflation and the pressure being put on the Reserve Bank of India (RBI) to raise its policy interest rate and tighten monetary conditions.
Technically, the important key resistances are placed in Nifty future are at 15780 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 15808 – 15888 levels. Immediate support is placed at 15636 – 15606 levels.
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