We had a nervous start for the week on Monday in line with not so favorable global cues. On Wednesday night, Fed announced a rate hike by 50 bps, which was in line with consensus; however, later, the Fed governor’s commentary spooked market participants across the globe. This poured complete water on early week recovery.
Domestic equities slipped into negative territory following US Fed hawkish commentary and weakness in global markets. Markets are likely to remain in consolidative range due to lack of triggers in the near term. Also lower participation from institutional investors due to upcoming year-end holidays would keep the markets lackluster. Though investors would keep eye on US Home Sales and GDP (QoQ) numbers to be released next week.
Traders are advised to stay light for a while. Let either market complete its correction first or reclaim key levels on the upside to resume the bullish trend. First half of the forthcoming week would be quite crucial for our markets. Let’s see how global market behaves and hopefully, there is no major aberration on the global front.
Nifty futures opened at 18367.00 points against the previous close of 18467.00 and opened at a low of 18313.20 points. Nifty Future closed with an average movement of 175.65 points and a decline of around 137.00 points and 18330.00 points…!!
On the NSE, the midcap 100 index will decline 1.60% and smallcap 100 index is closing decline 0.63%. Speaking of various sectoral indices, PSU Bank, Realty, Pharma, IT, Media and Auto 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.54157 fell from a high of Rs.54222 points to a low of Rs.54005 with a rise of 43 points, a trend of around Rs.54150 and March Silver opened at Rs.67673, fell from a high of Rs.67801 points to a low of Rs.66736, with a decline of 649 points, a trend of around Rs.67169.
Traders got anxious as India Ratings said falling exports and high crude prices are set to push up current account deficit (CAD) in the second quarter to a 37-quarter high of 4.4 per cent of GDP at $36 billion as against $9.7 billion or 1.3 per cent in the year-ago period. Some cautiousness also came as former governor of the Reserve Bank of India Raghuram Rajan said the next year will be difficult for the Indian economy as also for the rest of the world and the country failed to generate reforms needed for growth.
Investors failed to draw any solace with Union minister Piyush Goyal’s statement that huge opportunities are there in the textiles segment and the country would achieve $100 billion export target from the sector by 2030. He said that free trade agreements will further help boost textile exports. Meanwhile, the Parliament has passed the Energy Conservation (Amendment) Bill, 2022 that aims to mandate the use of green energy and enables the government to set up a carbon trading scheme. The Bill also allows the government to specify the minimum amount of non-fossil sources to be used by designated energy consumers.
Technically, the important key resistances are placed in Nifty future are at 18373 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 18404 – 18474 levels. Immediate support is placed at 18180 – 18008 levels.