In a volatile trading session, Indian equity benchmarks ended marginally lower on Wednesday, dragged by losses in energy, realty and oil & gas stocks amid weak cues from global markets. Markets made slightly positive start but soon turned negative, as domestic credit ratings agency Crisil cut its FY22 growth estimate for India to 9.5 per cent from the earlier 11 per cent due to the hit to private consumption and investments following the second wave of COVID-19. Traders took note of report that FPIs stood as net sellers in May to the tune of $397 million as against an outflow of $1,297 million seen in April.
Selling further crept in as PHD Chamber of Commerce and Industry (PHDCCI) in its latest survey pointed out that businesses are struggling with rising cost of raw materials amid the second COVID wave as restrictions in many parts of the country have disrupted supply chains and also impacted the pace of economic recovery. In a survey, the industry body said that going ahead, a substantial stimulus to push the growth of the Indian economy impacted by the second wave of the pandemic would be crucial.
Nifty futures opened at 15778.20 points against the previous close of 15768.60 and opened at a low of 15594.05 points. Nifty Future closed with an average movement of 220.60 points and a decline of around 99.65 points and 15668.95 points .. !!!
On the NSE, the midcap 100 index will decline 0.72% and smallcap 100 index is closing decline 1.35%. Speaking of various sectoral indices, the NSE saw heavy selling in media, realty, PSU bank and auto stocks, while all other sectoral indices also closed lower.
At the start of intra-day trading, august gold opened at Rs.49150, fell from a high of Rs.49198 points to a low of Rs.49024, with a decline of 35 points, a trend of around Rs.49092 and July Silver opened at Rs.71356, fell from a high of Rs.71415 points to a low of Rs.71057, with a decline of 44 points, a trend of around Rs.71187..!!
The market is booming due to the success of vaccines and the steady influx of FIIs, but there have been corrections in the bullish phase in the past as well. This time too, along with the positive factors, the bullish trade in stocks is likely to ease, so caution will be required. In the near term, positive bias is expected to continue.
Technically, the important key resistances are placed in Nifty future are at 15668 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 15777 – 15808 levels. Immediate support is placed at 15606 – 15560 levels.