Dear Trader…
Indian equity benchmarks ended lower on Monday, tracking weak cues from global markets as investors continued to assess the impact of new Western sanctions on Russia and the Fed's plans to shrink its balance sheet. Benchmarks made negative start and stayed in red for whole day, as investors awaited the onset of the corporate earnings season with Tata Consultancy Services (TCS) due to report its financial results for the March quarter after market hours today.
Weakness persisted in markets in afternoon trade amid a private report stating that India's retail inflation likely sped up to a 16-month high of 6.35% in March, well above the Reserve Bank of India's upper tolerance band for a third straight month, in part due to a sustained rise in food prices. Sentiments remained down-beat after exchange data showed foreign institutional investors (FIIs) were net sellers in the capital market on Friday, as they offloaded shares worth Rs 575.04 crore.
Nifty futures opened at 17781.50 points against the previous close of 17878.75 and opened at a low of 17690.35 points. Nifty Future closed with an average movement of 136.60 points and a decline of around 150.70 points and 17728.05 points...!!
On the NSE, the midcap 100 index will rise 0.62% and smallcap 100 index is closing decline 0.06%. Speaking of various sectoral indices, the NSE saw gains in only Media, Realty and Metal stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, April gold opened at Rs.52126, fell from a high of Rs.52676 points to a low of Rs.52021 with a rise of 593 points, a trend of around Rs.66980 and March Silver opened at Rs.66980, fell from a high of Rs.68333 points to a low of Rs.66908, with a rise of 1341 points, a trend of around Rs.68333.
Meanwhile, Reserve Bank of India (RBI) in its latest survey report has stated that the household inflation expectation and consumer confidence rose in March. The survey was conducted during March 2 to 11, 2022 in 19 major cities. As per the survey report, households’ median inflation perception for the current period remained unchanged at 9.7 per cent in the latest survey round, while the expectations for both three months and one-year ahead rose by 10 basis points each to 10.7 per cent and 10.8 per cent, respectively, compared to January 2022 round.
The RBI said ‘for a majority of population and age groups, uncertainty in inflation expectations increased for both three-month and one-year horizons, as compared to the previous survey round’. Three months ahead of expectations for overall prices and inflation were generally aligned to those for food and non-food products, while one-year ahead expectations were more aligned to those for non-food products and services.
The report also stated that consumer confidence for the current period continued on its recovery path. The current situation index (CSI) improved further in March 2022 on the back of improved sentiments on general economic situation, employment and household income. Households’ opinion about current and future spending remained in positive territory and was bolstered by a rise in both essential and discretionary spending.
Technically, the important key resistances are placed in Nifty future are at 17888 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 17970 – 18008 levels. Immediate support is placed at 17676 – 17606 levels.
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