Dear Trader…
Indian benchmark indices ended higher for the second consecutive session on Tuesday with Sensex rising as much as 400 points and Nifty 50 index moving above its important psychological level of 17,800 on the back of a broad-based buying interest. In the first half of the session, benchmarks fluctuated between gains and losses owing to weak global cues. Traders remain concerned with ICRA Ratings’ report stated that total infrastructure credit by banks and NBFC-Infrastructure Finance Companies (NBFC-IFCs) remained sluggish in the first quarter of the current fiscal (Q1FY22) due to the disruptions caused by the second wave of the COVID-19 pandemic.
However, markets staged a sharp recovery in second half of the session, as hopes of strong September quarter earnings, which will start with IT giant TCS and continuation of dovish monetary policy from the Reserve Bank of India lifted investors' sentiment. Traders also found support with Economic Affairs Secretary Ajay Seth’s statement that India is on the path of economic recovery supported by various government reforms in the last seven years under Prime Minister Narendra Modi's leadership. Notwithstanding the COVID-19 pandemic, he said, the government continued with the reform process and many strategic reforms were announced even during pandemic.
Nifty futures opened at 17571.00 points against the previous close of 17530.20 and opened at a low of 17560.05 points. Nifty Future closed with an average movement of 184.95 points and a rise of around 184.80 points and 17715.00 points...!!
On the NSE, the midcap 100 index will rise 1.57% and smallcap 100 index is closing rise 1.58%. Speaking of various sectoral indices, the NSE saw heavy gains in metal, media, realty and PSU bank stocks, while all other sectoral indices also closed higher.
At the start of intra-day trading, December gold opened at Rs.46532, fell from a high of Rs.46624 points to a low of Rs.46341.00 with a decline of 56 points, a trend of around Rs.46450 and December Silver opened at Rs.60517, fell from a high of Rs.60923 points to a low of Rs.60070, with a decline of 81 points, a trend of around Rs.60469.
Meanwhile, India Ratings and Research (Ind-Ra) in its latest report has said that short-term power prices are likely to remain elevated in the near term on account of a continued increase in imported coal prices. It noted that a large part of the increased power generation would continue to be met through coal-based plants, although coal output is not increasing to the desired level. It said this is reflected in low inventory stocks at power plants, and therefore, a part of the increased energy demand will have to be met through imported coal.
According to the report, the average inventory at thermal power stations increased to 38.6 mt in 2020-21, led by a decline in thermal power generation requirement (2019-20: 28.6 mt). However, it said that with an increase in thermal generation requirement, the inventory levels are now correcting, and have reduced to an average of 23.6 mt in the period under review. It pointed out that the speedy recovery in power demand post the second wave of COVID-19 infections, coupled with lower than adequate domestic coal production, led to a reduction in coal inventory levels at various power plants.
Technically, the important key resistances are placed in Nifty future are at 17888 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 17909 – 17919 levels. Immediate support is placed at 17707 – 17676 levels.
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