Dear
Trader…
Domestic
equities snapped their three-day gains to end lower on the back of weak global
cues. Nifty future opened lower and remained under pressure throughout the
session to end with loss of 111 points (-0.62%) at 17951 levels. Even broader
market ended lower on similar lines with majority of the sectors down. Higher
US inflation data and lower jobless claim data led to hawkish commentaries by
some of the US Fed officials which dented sentiments and led to the renewed
fear of aggressive rate hikes in the subsequent meets to combat sticky inflation.
On the
domestic front, even the corporate earnings growth for 3QFY23 moderated led by
weak demand environment and inflation led margin pressure. Slowdown in
Consumption if persist, can pose a big concern. Currently markets are trading
range bound and valuations are fair with Nifty trading at ~18x FY24E EPS. Thus
there is room for modest upside but only if corporate earnings do not see
material downgrades ahead.
Nifty futures
opened at 17986.20 points against the previous close of 18062.85 and opened at
a low of 17893.55 points. Nifty Future closed with an average movement of 151.45
points and a decline of around 111.85 points and 17951.00 points…!!
On the NSE,
the midcap 100 index will decline 0.79% and smallcap 100 index is closing decline
0.57%. Speaking of various sectoral indices, Realty, PSU Bank, PVT Bank, IT,
Bank and Pharma stocks saw heavy selling on the NSE, while all other sectoral
indices also closed lower.
At the start
of intra-day trading, April gold opened at Rs.55975, fell from a high of Rs.55975
points to a low of Rs.55691 with a rise of 300 points, a trend of around Rs.55928
and March Silver opened at Rs.65228, fell from a high of Rs.65228 points to a
low of Rs.64400, with a decline of 933 points, a trend of around Rs.64700.
Meanwhile, Wall
Street after strong US retail sales data signalled strength in the world’s
biggest economy. Increased buying by foreign institutional investors also
supported the markets. Foreign institutional investors extended their buying
streak in Indian equities for the fourth consecutive session on Wednesday. Over
the past four sessions, FIIs have bought a net Rs 4,517 crore worth of
equities.
However,
markets wiped out most of their gains and touched a low towards the fag end
amid volatility faced during the last minutes of trading hours. Traders were
anxious with the commerce ministry in its latest data showing that contracting
for the second month in a row, India’s Merchandise exports dipped by 6.58 per
cent to $32.91 billion in January 2023 as against $ 35.23 billion in the same
month last year due to slowdown in global demand, even as the trade deficit
touched a 12-month low of $17.75 billion during the month.
Technically, the important key resistances are placed in Nifty future are at 18008 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 18088 – 18108 levels. Immediate support is placed at 17808 – 17676 levels.
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