Dear
Trader…
Domestic equities plunged – 2% amid a weak environment
globally and a selloff in HDFC Bank. Nifty future saw a sharp decline as
selling intensified during the day and closed with a loss of 442 points (-2.1%)
at 21587 levels. Barring IT, all sectors ended in red amid heightened volatility.
Banking sector took the biggest hit with Nifty Bank down 4% as Q3 results of
HDFC Bank showed stagnant growth for the company.
After making a recent fresh high above 22k levels, Nifty saw
a steep fall and turned weak in the near term impacted by negative global and
domestic cues. Hawkish Fed commentary, escalating tension in the Middle East,
and a spike in bond yield spike dented investor sentiment. On the domestic
front, the market would look at quarterly results for stock-specific action and
we expect indices to consolidate after a sharp sell-off.
Nifty futures
opened at 21743.69 points against the previous close of 22029.50 and opened at
a low of 21563.30 points. Nifty Future closed with an average movement of 291.45
points and a decline of around 442.50 points and 21587.00 points…!!
On the NSE,
the midcap 100 index will decline 1.08% and smallcap 100 index is closing decline
1.20%. Speaking of various sectoral indices, the NSE saw gains in only IT stocks,
while all other sectoral indices closed lower.
At the start
of intra-day trading, February gold opened at Rs.62054, fell from a high of Rs.62066
points to a low of Rs.61771 with a rise of 39 points, a trend of around Rs.62054
and March Silver opened at Rs.72001, fell from a high of Rs.72001 points to a
low of Rs.71465.00 with a decline of 193 points, a trend of around Rs.71900.
Meanwhile, The
FIIs as per Wednesday’s data were net buyers in both equity and debt segments,
according to data released by the NSDL. In equity segment, the gross buying was
of Rs 12670.07 crore against gross selling of Rs 11488.34 crore. Thus, FIIs
stood as net buyers of Rs 1181.73 crore in equities.
In the debt
segment, the gross purchase was of Rs 2783.34 crore with gross sales of Rs
417.58 crore. Thus, FIIs stood as net buyers of Rs 2365.76 crore in debt. In
the hybrid segment, the gross buying was of Rs 53.46 crore against gross
selling of Rs 31.83 crore. Thus, FIIs stood as net buyers of Rs 21.63 crore in
hybrid segment.
Technically,
the important key resistances are placed in Nifty future are at 21606 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 21676 – 21707 levels. Immediate support is placed at 21474
– 21404 levels.
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