Dear Trader…
Domestic equities fizzled out and traded in negative territory impacted by weak global cues, continued FIIs selling and depreciation in rupee. Nifty opened lower and remained under pressure through the day to finally end with a loss of 225 points (-1.4%) at 15,413 levels. Broader markets mirrored the benchmark and were down more than 1% each. All sectorial indices ended in red with Metals, Media, Realty and Oil & Gas being top laggards down 2-4% each.
Sentiments were fragile as foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 2,701.21 crore on Tuesday. Fears of aggressive interest rate hikes and their impact on economic growth also kept investors cautious. Meanwhile, traders globally awaited a key testimony by Fed Chair Jerome Powell due later in the day. On the global front, all Asian markets were trading lower amid persistent worries about interest rates and inflation.
Nifty futures opened at 15551.00 points against the previous close of 15638.40 and opened at a low of 15357.25 points. Nifty Future closed with an average movement of 200.75 points and a decline of around 237.40 points and 15401.00 points...!!
On the NSE, the midcap 100 index will decline 1.63% and smallcap 100 index is closing decline 1.41%. Speaking of various sectoral indices, Metal, Media, Realty 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.50827, fell from a high of Rs.50877 points to a low of Rs.50650 with a rise of 85 points, a trend of around Rs.50820 and July Silver opened at Rs.61101, fell from a high of Rs.61101 points to a low of Rs.60113, with a decline of 504 points, a trend of around Rs.60767.
Meanwhile, Credit Rating Agency ICRA in its latest report has said that the domestic metro rail projects will offer Rs 80,000 crore business opportunities for construction firms over the next five years. It said in India, 15 cities have operational metro networks of about 746 km (many of which are undertaking expansion), and another seven cities have under-implementation metro projects of about 640 km.
The report stated that this is apart from 1,400 km of metro rail projects worth Rs 2 trillion in the approval/proposal stages, of which a 352-km of new metro network has been approved, with the balance being in the proposal stage. It said given the government's thrust for infrastructure development, the metro rail network is likely to witness 2.7 times expansion in the next five years.
ICRA further said typically, the metro rail development cost ranges between Rs 280-320 crore/km for elevated metro and the cost could be much higher in the case of an underground metro network. It also said civil construction forms 35-45 per cent of the overall cost. It added that given the large size of the metro projects, this is likely to offer sizeable opportunities for construction companies over the next five years.
Technically, the important key resistances are placed in Nifty future are at 15474 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 15530 – 15606 levels. Immediate support is placed at 15303 – 15232 levels.
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