Sensex, Nifty continue to trade volatile; 5 things to know before today’s opening bell Domestic equity markets continue to remain volatile as headline indices fell on Tuesday, after having traded flat for most of the day. S&P BSE Sensex ended the day 359 points or 0.64% lower at 55,566 points while NSE Nifty 50 fell 76.85 points or 0.46% at 16,584. India VIX was up 2.48 points regaining 20 levels. Now, ahead of the third trading session of this week, SGX Nifty was down with marginal losses, suggesting a weak opening to the day’s trade. Global cues were mixed as Asian stock markets traded mixed during the early hours of Wednesday. Global watch: Dow Jones fell 0.67% on Wall Street while S&P 500 was down 0.63%. NASDAQ ended 0.41% lower. US stock markets opened after having remained shut on Monday. Asian stock markets were trading mixed with Hang Seng in losses while Shanghai Composite, Nikkei 225, TOPXI, KOSDAQ, and KOSPI were up with gains. Levels to watch out for: Although the up-trend is seen to be intact, the present consolidation may long for a few sessions which are likely to prepare a base for another round of sharp up-move in Nifty for the near term. The next upside levels to be watched are around 16900-17000, said Shetti. Support for the index is around 16400 while on the upside 16750 may act as an immediate hurdle, according to Palak Kothari, Research Associate, Choice Broking. “On the other hand, Bank nifty has support at 34800 levels while resistance at 36000 levels,” Kothari added. FII and DII trades: Foreign Institutional Investors (FII) were once again net sellers of domestic stocks. FIIs pulled out Rs 1,003 crore from Dalal Street. Domestic Institutional Investors (DII) were net buyers, pumping in 1,845 crore. GDP growth slows: India’s GDP growth slowed down to 4.1% in the January-March quarter, from 5.4% in the previous quarter. The economic growth was slowed down due to the omicron variant hampering economic activity while the war in Ukraine worsened fuel and food inflation. Economic growth in the last fiscal year stood at 8.7%.
Last Friday, WTI and Brent slid 3% after strong U.S. jobs data raised concerns that the Federal Reserve would keep raising interest rates, which in turn boosted the dollar. While recession fears dominated the market last week, on Sunday International Energy Agency (IEA) Executive Director Fatih Birol highlighted that China’s recovery remains a key driver for oil prices.
“If demand goes up very strongly, if the Chinese economy rebounds, then there will be a need, in my view, for the OPEC+ countries to look at their (output) policies,” Birol told Reuters on the sidelines of a conference in India.Price caps on Russian products took effect on Sunday, with the Group of Seven (G7), the European Union and Australia agreeing on caps of $100 per barrel on diesel and other products that trade at a premium to crude, and $45 per barrel for products that trade at a discount, such as fuel oil.
“For the moment, the market expects non-EU countries will increase imports of refined Russian crude, thus creating little disruption to overall supplies,” ANZ analysts said in a client note. “Nevertheless, OPEC’s continued constraint on supply should keep the market tight,” they said.