Dear Trader…
Indian equity benchmarks continued their lackluster trade in Today's session as sentiments remains downbeat as the wholesale price-based (WPI) inflation accelerated to a record high of 12.94 per cent in May, on rising prices of crude oil and manufactured goods. Low base effect also contributed to the spike in WPI inflation in May 2021. In May 2020, WPI inflation was at (-) 3.37 per cent. This is the fifth straight month of uptick seen in the wholesale price index (WPI)-based inflation. In April, 2021, WPI inflation hit double digit at 10.49 per cent.
In scrip specific developments, Adani group shares decline following the action taken against three FPI accounts owning Adani Group shares by NSDL. According to report, the freeze could be because of insufficient disclosure of information regarding beneficial ownership as per the Prevention of Money Laundering Act (PMLA).
On the global front, Asian markets were trading mixed as traders focus will be on the U.S. Federal Reserve's policy meeting this week. The central bank has assured that rising inflation will not last long enough to warrant a sooner-than-expected end to easy-money policies.
Nifty futures opened at 15728.00 points against the previous close of 15817.30 and opened at a low of 15630.65 points. Nifty Future closed with an average movement of 217.45 points and a rise of around 18.70 points and 15836.00 points .. !!!
On the NSE, the midcap 100 index will decline 0.48% and smallcap 100 index is closing decline 0.34%. Speaking of various sectoral indices, the NSE saw gains in FMCG, IT and PSU Bank stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, August gold opened at Rs.48750, fell from a high of Rs.48750 points to a low of Rs.48310, with a decline of 533 points, a trend of around Rs.48370 and July Silver opened at Rs.72000, fell from a high of Rs.72000 points to a low of Rs.71444, with a decline of 622 points, a trend of around Rs.71605..!!
During the week, US FOMC meet would keep market volatile though they have already hinted at keeping interest rates to near zero levels in order to aid the recovering economy. Any development on the same would be keenly awaited. Nevertheless at current juncture, increase in rates and tapering fears appear kind of muted, with the US 10-year Treasury yield already hovering near the bottom end of its recent range.
Concurrently back home, primary markets are gaining traction with two upcoming IPOs while secondary market is attentively focusing on conclusion of privatization processby Government. It is advised that long term investors should continue with their investments in marquee names in a phased manner.
Technically, the important key resistances are placed in Nifty future are at 15888 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 15909 – 15919 levels. Immediate support is placed at 15770 – 15707 levels.
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