Mr. Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities
Nifty broke three session losing streak despite soft global cues.
Ignoring soft global cues, Indian markets broke three session's losing streak. Nifty closed with a gain of more than 100 points. Equity benchmarks recovered on Monday from a bloodbath in the previous session to halt a three-day losing streak. Gainers outnumbered the losers on the frontline indices today. M&M, Bajaj Finance, SBI Life, Adani Ports were the major gainer while Tata Steel, NTPC, ICICI Bank, Power Grid were the top laggards. Amongst the sectors, Nifty PSU Banks, Media and FMCG were the top gainers while Nifty Reality and Metal were the major losers. Declining shares outnumbered the advancing shares on Monday where advance decline ratio stood at 0.91 on BSE.
India's Direct tax collections continue to grow at a robust pace, underscoring the picking pace of economic activities post pandemic. The figures of Direct Tax collections for the FY 2022-23, show that net collections are at Rs 7,00,669 crore, compared to Rs 5,68,147 crore in the corresponding period of the previous year.
Share markets in Asia on Monday were mostly lower as investors braced for a week littered with 13 central bank meetings that are certain to see borrowing costs rise across the globe and some risk of a super-sized hike in the United States. Markets are already fully priced for a rise of 75 basis points from the Federal Reserve, with futures showing an 18% chance of a full percentage point.
Nifty managed to close above the upward sloping trend line adjoining the daily lows of 20th Jun and 1st July 2022. Resistance for the Nifty are seen at 17760 and 17826, which happens to be 50% and 61.8% retracement of the entire fall seen from 18088(recent swing high made on 13 Sep 2022) and today's low of 17429. Below 17429, Nifty is expected to enter short term down trend. On the higher side, 18100 seems to be have become ceiling for the short term.
Volumes were lower side where cash market volumes on NSE stood lower by 8% as compared to average of last ten days.