Dear Trader…
Markets plunged sharply lower and lost nearly one and a half percent, tracking feeble global cues. The tone was negative from the beginning however a sharp decline in the final hour pushed the bulls on the back foot. Consequently, the Nifty future index ended around the day’s low to close at 18445.50 levels. The selling pressure was widespread wherein IT, metal and banking shed over a percent each. The broader indices too witnessed a fall and lost in the range of 0.6%-1%.
Traders should closely monitor global markets, especially the US, for cues. Besides, we feel the performance of the banking index would play a critical role in setting the tone ahead while others are showing a mixed trend. Meanwhile, participants should restrict leveraged positions and maintain a few shorts also.
Nifty futures opened at 18705.60 points against the previous close of 18748.90 and opened at a low of 18437.55 points. Nifty Future closed with an average movement of 304.85 points and a decline of around 303.40 points and 18445.50 points…!!
On the NSE, the midcap 100 index will decline 1.01% and smallcap 100 index is closing decline 0.57%. Speaking of various sectoral indices, IT, Media, PSU Bank, Metal and Realty 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.54481 fell from a high of Rs.54481 points to a low of Rs.53882 with a decline of 566 points, a trend of around Rs.54108 and March Silver opened at Rs.68210, fell from a high of Rs.68286 points to a low of Rs.67412, with a decline of 1538 points, a trend of around Rs.67764.
Traders also took a note of report that India and the United Kingdom (UK) have decided to iron out the differences while keeping both nations’ sensitivities in mind, and agreed to conclude the negotiations towards a free trade agreement (FTA) at the earliest. Key gauges extended gains in afternoon deals, as India’s inflation based on wholesale price index (WPI) eased further to 5.85% in the month of November 2022 as against 8.39% recorded in October 2022, primarily contributed by fall in prices of food articles, basic metals, textiles, chemicals & chemical products and paper & paper products as compared to the corresponding month of the previous year. The wholesale inflation was 10.70% in September 2022. Steady foreign flows aided the sentiments in the domestic markets.
Foreign institutional investors (FIIs) net bought shares worth Rs 619.92 crore on December 13, according to the provisional data available on the NSE. However, indices pared some of the gains towards the end as traders got anxious with the Asian Development Bank’s report stating that developing Asia’s economic expansion next year is expected to be slower than previously projected as a global slowdown and the prolonged war in Ukraine weigh on the region.
Technically, the important key resistances are placed in Nifty future are at 18505 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 18575 – 18606 levels. Immediate support is placed at 18404 – 18373 levels.
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