Dear Trader…
Indian equity benchmarks ended in the red for a fifth straight session on Monday, with Realty and Metal stocks dragging the most, as investor worries ballooned over possibilities of a quicker rate hike from the U.S. Federal Reserve. The benchmark indices started trade on a lower note, as continued selling by foreign institutional investors (FIIs) weighted on domestic markets. As per provisional data available on the NSE, FIIs net sold shares worth Rs 3,148.58 crore. Some cautiousness came in as former RBI Governor Raghuram Rajan said the Indian economy has some bright spots and a number of very dark stains and the government should target its spending carefully so that there are no huge deficits. Rajan also said the government needs to do more to prevent a K-shaped recovery of the economy hit by the corona virus pandemic.
Key indices continued to reel under the selling pressure in second half of trading session, as nervousness ahead of the upcoming Budget announcements were weighing on the investment sentiment. Traders also got cautious, with a survey done by a consultancy firm has revealed that India Inc is staring at an ''integrity crisis'' in the second year of the pandemic. Traders overlooked the Services Export Promotion Council’s (SEPC) statement that it looks to set an export target of $300 billion for 2022-23 as it expects resumption of regular international travels and other business activities in the coming time.
Nifty futures opened at 17550.00 points against the previous close of 17617.80 and opened at a low of 17011.75 points. Nifty Future closed with an average movement of 591.20 points and a decline of around 515.50 points and 17102.30 points...!!
On the NSE, the midcap 100 index will decline 3.86% and smallcap 100 index is closing decline 4.78%. Speaking of various sectoral indices, Realty, Metal, Media and IT stocks saw heavy selling on the NSE, while all other sectoral indices also closed lower.
At the start of intra-day trading, February gold opened at Rs.48323, fell from a high of Rs.48600 points to a low of Rs.48300 with a rise of 263 points, a trend of around Rs.48512 and March Silver opened at Rs.64553, fell from a high of Rs.64990 points to a low of Rs.64427, with a decline of 301 points, a trend of around Rs.64505.
Meanwhile, additional Director General of Foreign Trade Amiya Chandra said India has set up a target of $500 billion exports for the 2022-23 fiscal, contending that the COVID-19 pandemic has taught the country to reimagine world trade. In December 2021, exports stood at $37.8 billion, the highest-ever for any month. He added that ‘we are bang on target to touch $400 billion for the current fiscal. So far in the first nine months, the country's exports were to the tune of $301.38 billion’.
He highlighted that India is targeting $1 trillion exports by 2027. He said the apprehension that COVID-19 would lead to a sharp decline in foreign trade has turned out to be negative. However, the pandemic has taught us to reimagine world trade. He said the fulcrum of international trade has shifted from Europe and the United States to South East Asia.
Technically, the important key resistances are placed in Nifty future are at 17173 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 17202 – 17232 levels. Immediate support is placed at 17007 – 16970 levels.
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