Dear
Trader…
Markets
plunged sharply lower and lost over one and a half percent, tracking weak
global cues. After the weak start, the Nifty future index gradually drifted
lower as the day progressed and slipped below the support zone of long term
moving average (200 EMA) on the daily chart as well. It finally settled closer
to the day’s low at 17566.90 levels. The pressure was widespread wherein
continuous decline in the banking heavyweights combined with a further dip in
the IT and energy majors were largely weighing on the sentiment. In line with
the trend, the broader indices too shed over a percent each.
The pace of
decline was gradual till Tuesday but a sharp cut in the US markets has
completely changed the tone. Indications are pointing towards the same tone to
continue, with the next major support around the 17404-17474 zone. In case of
any rebound, the 17676-17707 zone would act as a strong hurdle. Traders should
continue with a “sell on rise” approach and limit positions.
Nifty futures
opened at 17790.00 points against the previous close
of 1784.10 and opened at a low of 17532.55 points. Nifty Future closed with an
average movement of 262.40 points and a decline of around 273.20 points and 17566.90
points…!!
On the NSE,
the midcap 100 index will decline 1.13% and smallcap 100 index is closing decline
1.14%. Speaking of various sectoral indices, Metal, Media, PSU Bank, Financial
Services, PVT Bank and Realty 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.56169, fell from a high of Rs.56395
points to a low of Rs.56080 with a rise of 154 points, a trend of around Rs.56322
and March Silver opened at Rs.65976, fell from a high of Rs.66133 points to a
low of Rs.65580, with a decline of 31 points, a trend of around Rs.66021.
Meanwhile, U.S.
Fed would keep interest rates higher for longer while rising concerns after
North Korea fired more ballistic missiles. After a cautious start of the day,
markets managed to keep their heads above water during morning deals, as
traders took support with Federation of Indian Export Organization’s (FIEO)
statement that India’s exports are expected to grow by 3-5 per cent to $435-445
billion in this fiscal. However, in noon deals, indices turned negative and
witnessed a sharp fall, amid weak cues from European markets along with heavy
selling at oil & gas and banking counters.
Sentiments got
hit amid a private report stating that India’s economic activity cooled off at
the start of the year as higher borrowing costs tempered demand at home and
abroad, signaling more pain ahead as the global economy slows down. Besides,
traders took note of a report that the Reserve Bank of India (RBI) has
predicted that 2023 would probably be characterized by a milder global slowdown
than anticipated earlier, but added that the trajectory remains unpredictable.
Technically, the important key resistances are placed in Nifty future are at 17606 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 17676 – 17707 levels. Immediate support is placed at 17474 – 17404 levels.
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