Dear
Trader…
Indian equity
benchmark extended losses for the third consecutive week as investors turned
cautious after the government hiked securities transaction tax (STT) on futures
and options contracts, while lingering concerns of contagion in the global
banking sector weighed. Adding to this, the weak start in European bourses
dragged Nifty below 17000 to mark lowest weekly close in last seven months.
There’s still
no respite for the bulls as any intermediate bounce is getting sold into and
prices continue to move in a lower top-lower bottom formation. Globally, the
mounting concerns over a few banks and now domestically, the hiking of STT has
dampened the market sentiment. The
market is currently oversold, but such financial issues can be very disruptive
at times. Hence, traders should ideally avoid aggressive bets for a while.
Nifty futures
opened at 17079.95 points against the previous close of 17087.50
and opened at a low of 16931.95 points. Nifty Future closed with an average
movement of 187.95 points and a decline of around 135.45 points and 16955.05
points…!!
On the NSE,
the midcap 100 index will decline 1.17% and smallcap 100 index is closing decline
1.67%. Speaking of various sectoral indices, Media, Realty, Metal and PSU Bank 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.59490, fell from a high of Rs.59975
points to a low of Rs.59258 with a rise of 183 points, a trend of around Rs.59748
and March Silver opened at Rs.70093, fell from a high of Rs.71481 points to a
low of Rs.69911, with a rise of 865 points, a trend of around Rs.71077.
Meanwhile, traders
took support with exchange data showing that Foreign Institutional Investors
(FIIs) turned net buyers in the domestic capital market on Wednesday as they
purchased shares worth Rs 61.72 crore. However, the recovery was short-lived as
key indices once again fell sharply in late afternoon deals, due to a sluggish
start in the European market led by a 50bps hike by the Swiss National Bank.
Meanwhile,
industry body PHDCCI has approached the government seeking reintroduction of
the Credit Linked Capital Subsidy Scheme to facilitate technology upgradation
of micro and small enterprises. On the global front, European markets were
trading lower amid U.S. Federal Reserve’s rate hike move that was widely
expected. Investors also concerned about the health of the banking industry
after US Treasury Secretary Janet Yellen commented that the regulators are not
looking to provide any ‘blanket’ deposit insurance to stabilise the US banking
system, without working with law makers.
Asian markets settled mostly higher on Thursday despite the U.S. Federal
Reserve raised rates by 25 basis points and signaled another hike to fight
inflation.
Technically, the important key resistances are placed in Nifty future are at 17070 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 17170 – 17303 levels. Immediate support is placed at 16880 – 16737 levels.
Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in
