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Indian equity benchmarks closed lower on Wednesday, dragged by sharp losses in tech stocks on rating downgrades and U.S. interest rate hike worries, although stronger bank stocks arrested the decline.


Dear Trader…

Indian markets displayed strong resilience in the face of negative global cues. While markets opened 1.6% lower, it showed steady recovery throughout the day to wipe out the entire opening loss and managed to close near day’s high with marginal loss of 0.4%. Nifty reclaimed its 18000 level and we expect the momentum to continue in the near term towards 18200. Nifty Bank Index is just 1% away from its all-time high, while still managing to close at record high on closing basis. Previous closing high was 41238 on 26th Oct 2021, while the intraday all-time high for Bank Nifty is 41829 on 25th Oct 2021.   Nifty is still ~3% away from its all-time high of 18604 touched on 19th Oct 2021.

Controlled inflationary environment v/s global peers, strong flows from retail, domestic as well as foreign institutions continue to drive the domestic equities. Although there can be bouts of volatility due to adverse global cues. Support base buying at lower levels are giving much needed strength to the Indian markets and any sharp decline will be good opportunity to buy in Indian equities.

Nifty futures opened at 17826.65 points against the previous close of 18105.50 and opened at a low of 17819.00 points. Nifty Future closed with an average movement of 291 points and a decline of around 87.50 points and 18018.00 points…!!

On the NSE, the midcap 100 index will decline 0.33% and smallcap 100 index is closing decline 0.07%. Speaking of various sectoral indices, the NSE saw gains in PSU Bank, Metal, PVT Bank, Bank, Media and Financial Services stocks, while all other sectoral indices closed lower.

At the start of intra-day trading, October gold opened at Rs.50069, fell from a high of Rs.50143 points to a low of Rs.50001 with a decline of 74 points, a trend of around Rs.50064 and December Silver opened at Rs.56475, fell from a high of Rs.56993 points to a low of Rs.56314, with a decline of 101 points, a trend of around Rs.56710.

Meanwhile, the borrowing cost for the states fell for the fourth consecutive week as the weighted average cut-off eased 6 basis points (bps) to 7.46 per cent at the weekly auctions on Tuesday. Fertilizer industry stocks will be in focus as Union Chemicals and Fertilisers Minister Mansukh Mandaviya said there is no shortage of crop nutrients in the country and asserted that there will be no hike in the prices of non-urea products. The minister also said that Nutrient Based Policy (NBS) for Phosphatic and Potassic (P&K) fertilisers for the Rabi season (October 2022 to March 2023) will be announced shortly.

There will be some reaction in insurance companies stocks as easing compliance burden for insurers, regulator Irdai rationalised health insurance business returns reporting norm by reducing the number of returns that need to be filed in a year. Besides, the initial public offering (IPO) of Harsha Engineers International, opens today. The precision bearing cages manufacturer has set a price band of Rs 314-330 per share for its maiden public issue which will remain open for subscription till Friday, September 16. The company plans to raise Rs 755 crore through this IPO.

Technically, the important key resistances are placed in Nifty future are at 18088 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 18108 – 18188 levels. Immediate support is placed at 17808 – 17676 levels.

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