10 Jun , 2022 By : monika singh
Share Market News Today | Sensex, Nifty, Share Prices LIVE: Domestic equity market benchmarks BSE Sensex and Nifty 50 lost over 1 per cent on Friday, on the back of weak global cues. BSE Sensex was hovering near 54,440, while NSE Nifty 50 index gave 16300. Index heavyweights such as Wipro, Tech Mahindra, Tata Steel, Infosys, Kotak Mahindra Bank, Housing Development Finance Corporation (HDFC), Bajaj Finance, Sun Pharma were top index draggers. Stocks of Power Grid Corporation of India, Maruti Suzuki India, Titan Company, and NTPC were trading in the green. Nifty Bank index fell 1.3 per cent or 218 points to trade at 34,626.
We believe strong support for the Nifty is placed at 16100 zone. However, for a meaningful pullback to materialise the index needs to decisively close above past three session’s identical high of 16500 to extend the pullback towards last week’s high of 16800. Else, there will be prolonging of consolidation in the 16500-16100 range amid stock specific action.
Escalation in input cost, logistics-related challenges, inflationary pressures, and a volatile global environment led to decline in margin and muted near-term demand for Home Textile players. Cotton prices have doubled over the last 18 months due to non-availability of cotton. However, managements see these elevated price levels as unsustainable and expect it to normalize after another good cotton season. he mid to long-term outlook remains intact due to higher export opportunities with the signing of Free Trade Agreements (FTA) between India and the UAE and Australia, and with a few more in the pipeline.
Domestic equity markets may see a sharp fall in early Friday trades amid weakness across the global markets. Soaring inflation, recession fears, and the prospect of the Federal Reserve getting even more hawkish is making investors nervous worldwide. The negativity can also be attributed to yesterday’s weak session at European stock markets which closed sharply lower, with Germany’s DAX retreating 1.7?ter the ECB set the path to start raising borrowing costs next month. ECB confirmed asset purchases will end from July 1st and a 25bps rate hike will follow in July as well. The U.S 10-year Treasury which has already doubled this year to roughly 3%, is expected to flirt with 4% by the end of 2022. Even if Nifty moves up, the overwhelming trend is down. Nifty’s immediate downside risk is seen at 16121 mark.
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