Dear
Trader…
Indian
shares closed lower on Wednesday after two days of sharp gains as private
sector banks ceded ground, while Asian peers retreated over concerns of an
uptick in U.S. inflation. Traders were concerned from rising inflationary
pressure globally and increasing apprehension among investors about Federal
Reserve’s soft monetary stance due to sharp rise in CPI inflation.
However,
markets pared most of their losses as some support came in as UN data stated
that India, China and South Africa have fared ‘relatively better’ than other
major economies in imports and exports in the first quarter of this year as
global trade recovery from the COVID-19 crisis hit a record high during in the
same period. Asian markets were trading lower as uncertainties over inflation
prompted investors to reduce exposure to riskier assets.
Nifty
futures opened at 15081.60 points against the previous close of 15144.85 and
opened at a low of 15035.20 points. Nifty Future closed with an average
movement of 122.60 points and a decline of around 96.30 points and 15048.55
points .. !!!
On the NSE,
the midcap 100 index will decline 0.13% and smallcap 100 index is closing rise
0.58%. Speaking of various sectoral indices, the NSE saw gains in IT, media,
pharma, PSU bank and realty stocks, while all other sectoral indices closed
lower.
At the start
of intra-day trading, June gold opened at Rs.48261, fell from a high of
Rs.48428 points to a low of Rs.48040, with a decline of 241 points, a trend of
around Rs.48066 and July Silver opened at Rs.72630, fell from a high of
Rs.73020 points to a low of Rs.71580, with a decline of 1597 points, a trend of
around Rs.71599..!!
Fitch
Ratings in its latest report has said that the recent price increases by
India’s cement companies will counter higher energy costs while the impact on
profitability from a resurgence of coronavirus is likely to be limited. It also
expected cement demand to be less affected by restrictions to curb the spread
of Covid-19 this time around while larger cement companies’ strong
profitability in the financial year ended March 31 (FY21) should cushion their
financial profiles against downside risks.
However,
Fitch expects the economic impact of latest restrictions to be less severe than
those last year which should drive pent-up demand for cement after the curbs
are eased. It believed this should support moderate recovery in cement demand
in FY22 from FY21 levels unless stricter or wider restrictions are imposed. It
added that recovery after 1H FY21 limited the full-year decline in cement
production to 12 percent.
Technically, the important key resistances are placed at 15008 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 15188 – 15202 levels. Immediate support is placed at 14970 – 14909 levels.
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