Dear Trader…
Indian equity benchmarks closed a percent lower each for the second straight session on Wednesday as rising bond yields and negative global cues spooked investors. The benchmark indices opened lower, as traders were concerned with a private report that the third wave of the COVID-19 pandemic is likely to peak in India on January 23 when the country will record nearly 7.2 lakh cases per day.
Key gauges continued to reel under selling pressure in second half of trading session, as traders were worried with a top WHO official said that it is not possible to end the COVID-19 virus as such viruses never go away and end up becoming part of the ecosystem, but asserted that it is possible to end this year the public health emergency caused by COVID-19 with a collaborative approach to fix inherent inequities in the system. Sentiments remained down-beat with ratings agency ICRA’s report that states are shelling out more for debt funds, with the weighted average cost for their debt auctions hardening by 9 basis points (bps) to touch 7.24 per cent, the highest level so far this fiscal, during the auctions on January 18, 2022.
Nifty futures opened at 18094.00 points against the previous close of 18124.35 and opened at a low of 17906.55 points. Nifty Future closed with an average movement of 203.45 points and a decline of around 148.85 points and 17975.50 points...!!
On the NSE, the midcap 100 index will decline 0.06% and smallcap 100 index is closing rise 0.01%. Speaking of various sectoral indices, the NSE saw gains in only PSU Bank, Media, Metal and Auto stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, February gold opened at Rs.47949, fell from a high of Rs.48010 points to a low of Rs.47911 with a rise of 54 points, a trend of around Rs.47980 and March Silver opened at Rs.63150, fell from a high of Rs.63790 points to a low of Rs.63037, with a rise of 590 points, a trend of around Rs.63609.
Meanwhile, Ratings agency ICRA in its latest report has said that States are shelling out more for debt funds, with the weighted average cost for their debt auctions hardening by 9 basis points (bps) to touch 7.24 per cent, the highest level so far this fiscal, during the auctions on January 18, 2022. Compared to the previous week, the cost has gone up by 9 bps. From the first auctions in January, the cut-offs have been trending over 7 per cent.
According to the report, while 12 states raised Rs 21,200 crore on January 18, 6 per cent higher than the indicated level for this week, six of them borrowed Rs 6,700 crore more than indicated led by Uttar Pradesh. It borrowed Rs 900 crore more than the amount indicated. The share of longer tenor and 10-year debt has risen to 48 per cent so far in Q4 from 42 per cent and 29 per cent, respectively, in Q3 and Q2 of FY22. At the latest auctions, Rs 11,500 crore or 54 per cent of the total issuance was in longer tenor debt, Rs 7,200 crore or 34 per cent was in 10-year instruments and the balance Rs 2,500 crore or 12 per cent was in shorter tenor.
Technically, the important key resistances are placed in Nifty future are at 18008 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 18088 – 18108 levels. Immediate support is placed at 17909 – 17870 levels.
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