Dear
Trader…
Benchmark equity indices snapped their four
days of winning run and closed in the red on Wednesday amid weak global markets
as banks and financials declined with HDFC twins, SBI and Axis Bank dragging
the most.
The 30-share BSE benchmark Sensex declined
347 points or 0.55% to settle at 62,622. The broader NSE Nifty dropped 99
points or 0.53% to end at 18,534.
From the Sensex pack, Axis Bank, SBI and
Reliance were the top laggards, falling over 2% each. HDFC, NTPC, HDFC Bank,
Tata Steel, and UltraTech Cement also closed with losses. On the other hand,
Bharti Airtel, Asian Paints, Sun Pharma, Kotak Bank and Tata Motors ended with
gains.
Sectorally, Nifty Bank declined 0.69% and
Nifty Financial Services fell 0.82%. Whereas, FMCG, IT, media, pharma, realty,
healthcare, and consumer durables closed higher. In the broader market, Nifty
Midcap100 gained 0.37%, and Smallcap100 rose 1.03%.The market breadth was
skewed in favour of bears with 1,794 declines and 1,719 advances on BSE.
Global Markets –
Lacklustre action in the global market
weighed on Indian indices. Top Asian bourses, including Japan’s Nikkei, Hang
Seng Index, Shanghai Composite and Strait Times traded in the red. Dow futures
were down by over 100 points or 0.33%, signalling a negative start for US
markets.
Weak factory activity data from China
heightened concerns about its stuttering economic recovery and the impact on
the rest of Asia, driving equities worldwide lower, including in India. China’s
manufacturing activity contracted faster than expected in May on weakening
demand, data showed on Wednesday, with the official manufacturing purchasing
managers’ index down at 48.8 against a forecast of 49.4.
Nifty
futures opened at 18680.60 points
against the previous close of 18713.00 and opened at a low of 18566 points. Nifty Future closed with an average movement of 114 points and a rise of
around 83.45 points
and 18629.55
points…!!
On
the NSE, the midcap 100 index will up 0.37% and small cap 100 index is closing up 1.03%.
At
the start of intra-day trading, JUNE gold opened at Rs.59946 fell from a high of Rs.60050 points to a low of Rs.59840 with a rise of 104 points,
a trend of around Rs.60050 and JULY Silver opened at Rs.71034, fell from a high
of Rs.71862
points to a low of Rs.70905 with
a rise of 442 points, a trend of around Rs.71485.
Meanwhile,
As indicated by multiple
economic data points, the Indian economy is presently experiencing a robust
recovery, leading to an upward trend in domestic equity markets. However, the
rally is being hindered at times due to negative signals from global peers, as
observed today. Concerns about a recession and potential interest rate hikes in
western markets are impacting the domestic market but it is nevertheless
maintaining the outperformance.
Technically, the
important key resistances are placed in Nifty future are at 18629 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 18808 – 18880 levels. Immediate support is placed at 18570 –
18474 levels.
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