Indian Equity Indices Extend Decline

Dear Trader…

The 30-share BSE benchmark Sensex fell 299 points, or 0.45 per cent to settle at 66,385. The broader NSE Nifty future declined 83.70 points or 0.42 per cent to end at 19,692. From the Sensex pack, ITC was the top laggard, falling over 4% after the cigarette-to-hotels major announced that its board has approved the demerger of the hotels business. Kotak Mahindra Bank, Tech Mahindra, Reliance Industries, JSW Steel, and Tata Steel also closed in the red.

On the flip side, IndusInd Bank, M&M, Power Grid, Bajaj Finserv, UltraTech Cement, L&T, and TCS closed with gains. Sector-wise, Nifty FMCG declined 1.72%, and Nifty Metal fell 0.73 per cent.Nifty Bank and Nifty Oil & Gas also closed lower. In the broader market, Nifty Midcap100 dropped 0.15 per cent, while the Smallcap 100 gained 0.37 per cent. The market breadth was skewed in the favour of the bears. About 1,937 stocks declined, 1,763 gained, and 155 remained unchanged on the BSE.

FII and FPIs, on Monday, saw net sold of Rs 82.96 crore in the cash segment. A total of Rs. 9802.14 crore was sold against a total purchase of Rs. 9719.18 crore. Domestic institutional investors saw a net purchase of Rs. 934.87 crore in the cash segment. A total of Rs. 7721.02 crore was sold against a total purchase of Rs. 8655.89 crore.

Meanwhile, Volatility has re-emerged as initial Q1 results are below expectations. Sector-wise setbacks were experienced in IT and FMCG, unveiling weak demand and high input costs. Investors are also watchful of the upcoming FOMC meeting, addressing rate hikes and quantitative tightening measures, which could have an implication on FIIs inflows.

Technically, the important key resistances are placed in July Nifty future are at 19692 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 19770 - 19808 levels. Immediate support is placed at 19636 - 19606 levels.

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