Dear
Trader…
The Indian
equity market started the day on a strong note, wherein the benchmark index retested
the 17200 zone within minutes after the opening bell. However, it appeared to
be a false momentum as the index took a U-turn to pare down the early gains and
gradually nosedived into negative terrain. Amidst the hustle, the Nifty future
index slipped to a fresh low in the current calendar year with a cut of 1.49
percent and settled around the 17037 level.
The rub-off
effect of the global weakness was quite evident in our market as we failed to
sustain at the higher grounds. Technically, our market is in the cycle of lower
lows – lower bottoms formation and with today’s strong sell-off, Nifty plunged
to new lows, denting sentiments. Going ahead, any positive developments in the
US market could bring some cheer back and hence one needs to keep a close tab
on global bourses. Meanwhile, we advocate to avoid aggressive bets and keep
accumulating quality propositions in a staggered manner.
Nifty futures
opened at 17224.95 points against the previous close of 17125.75 and opened at
a low of 17010.90 points. Nifty Future closed with an average movement of 252.50
points and a decline of around 88.40 points and 17037.35 points…!!
On the NSE,
the midcap 100 index will rise 0.07% and smallcap 100 index is closing rise 0.41%.
Speaking of various sectoral indices, the NSE saw gains in only, Metal and
Pharma stocks, while all other sectoral indices closed lower.
At the start
of intra-day trading, April gold opened at Rs.57380, fell from a high of Rs.58248
points to a low of Rs.57068 with a rise of 754 points, a trend of around Rs.58237
and March Silver opened at Rs.66749, fell from a high of Rs.66268 points to a
low of Rs.66200, with a rise of 1266 points, a trend of around Rs.68222.
Meanwhile, Markets
opened positive as traders took some support with data showing that India’s
industrial production growth perked up slightly to 5.2 per cent in January from
4.7 per cent in December 2022, mainly due to good performance of the power,
mining and manufacturing sectors. Some support also came with the Central Board
of Direct Taxes (CBDT) stating that net direct tax collection so far this
fiscal grew 17 per cent to reach Rs 13.73 lakh crore, which is 83 per cent of
the revised target for the full financial year.
However, the
indices soon gave up the initial gains and came under intense selling pressure
in afternoon deals, as traders turned cautious with a private report that
India’s retail inflation probably breached the central bank’s target for a
second straight month in February, prompting the monetary authority to possibly
hike borrowing costs to the highest level in seven years. India’s Consumer
Price Index (CPI) data is to be out later in the day.
Weakness also
prevailed in the markets as foreign institutional investors (FII) net sold
shares worth Rs 2,061.47 crore on March 10, according to the provisional data
available on the NSE. Some anxiety also came amid a private report stating that
the central government has placed strict conditions on states to avail of the
Rs 1.3 trillion in long-term loans for their capital expenditure (capex) needs
in the approaching fiscal year (2023-24, or FY24) to ensure effective
utilisation of funds.
Technically, the important key resistances are placed in Nifty future are at 17177 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 17202 – 17272 levels. Immediate support is placed at 17007 – 16939 levels.
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