Dear Trader…
Indian equity benchmarks snapped a four-day losing streak to end higher in the volatile session on Tuesday led by strong buying interest in Realty, IT and TECK stocks. Key indices made weak start, as traders remained cautious with rating agency Icra’s statement that the ongoing conflict between Ukraine and Russia will burden domestic steelmakers with high input costs.
However, domestic indices reversed their trend and traded with gains in late afternoon deal, taking support from private report stating that hiring activity witnessed a 31 per cent increase in February as multiple sectors recorded strong growth compared to the previous year.
Traders also took a note of Credit rating agency, India Ratings and Research (Ind-Ra) report stated that the direct impact of the Russia-Ukraine war on Indian credits appears to be limited. Ind-Ra’s initial assessment indicates that the impact would be largely restricted to small entities and those at the lower end of the credit spectrum.
Nifty futures opened at 15770.00 points against the previous close of 15872.20 and opened at a low of 15676.35 points. Nifty Future closed with an average movement of 356.65 points and a rise of around 139.80 points and 16012.00 points...!!
On the NSE, the midcap 100 index will rise 1.24% and smallcap 100 index is closing rise 1.51%. Speaking of various sectoral indices only Metal stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, February gold opened at Rs.53639, fell from a high of Rs.54250 points to a low of Rs.53356 with a rise of 433 points, a trend of around Rs.53950 and March Silver opened at Rs.69958, fell from a high of Rs.72060 points to a low of Rs.69853, with a rise of 1383 points, a trend of around Rs.71352.
Meanwhile, rating agency ICRA in its latest report has said that the ongoing conflict between Ukraine and Russia will burden domestic steelmakers with high input costs. However, the tension between the countries provides exports opportunities to the Indian steel players. It noted that sanctions on Russia could open new export opportunities for Indian steel mills in geographies like Europe, the Middle East and the USA, which could face supply shortages in the near term.
According to the report, notwithstanding the input cost pressures, the industry earnings are expected to remain healthy in the next 12 months and its outlook for the industry remains positive. It said the domestic steel demand is also pegged to grow at 7-8 per cent in FY23 on the back of an estimated growth of 11-12 per cent in FY2022, supported by the government's large infrastructure spending plans.
It further said after reporting a steep 65-70 per cent sequential increase in the cost of coking coal in Q3 FY22, a further increase of 15 per cent Q-o-Q (quarter-on-quarter) is expected in the fourth quarter. Though the price of iron ore has moderated somewhat from the highs of Q3, and domestic mills have announced some steel price hikes from late January 2022, these will not be able to entirely compensate for the steep rise in coking coal costs.
Technically, the important key resistances are placed in Nifty future are at 16088 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 16106 – 16160 levels. Immediate support is placed at 15808 – 15676 levels.
Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in
