Dear Trader…
Domestic equities consolidated at higher levels after 3 days of strong up move. Nifty opened lower led by weakness in global markets. However it quickly moved towards 16,700 levels and closed with gains of 35 points (0.2%) at 16,630 levels. Stock specific action was seen in broader market which closed with gains of more than half percent. Among sectors, Pharma was top gainer up 2.5%, followed by PSU Bank, Oil & Gas, Energy, Metals, Media and FMCG. While Auto, IT and Media were laggards.
Sentiments turned negative globally as cease-fire talks between Russia and Ukraine failed to make any progress, while US inflation accelerated to a 40-year high in Feb’22 to 7.9%. Thus, suggesting the FED could move more aggressively to curb the inflation. Investors also weighed the European Central Bank's decision to unwind stimulus measures sooner than expected.
Domestic markets reacted positively to the assembly election outcome which favoured the ruling BJP led NDA in 4 out of 5 states. BJP’s comfortable victory would mean continued political stability, policy and reform momentum as well as fading of any risks associated with political uncertainty in an already volatile and uncertain market context.
Nifty futures opened at 16510.00 points against the previous close of 16611.90 and opened at a low of 16475.05 points. Nifty Future closed with an average movement of 232.75 points and a rise of around 44.70 points and 16656.60 points...!!
On the NSE, the midcap 100 index will rise 0.61% and smallcap 100 index is closing rise 0.91%. Speaking of various sectoral indices only Auto, IT Media 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.53089, fell from a high of Rs.53203 points to a low of Rs.52256 with a decline of 739 points, a trend of around Rs.52500 and March Silver opened at Rs.70038, fell from a high of Rs.70680 points to a low of Rs.69240, with a decline of 805 points, a trend of around Rs.69666.
Along with the ongoing war, the conclusion of the Fed's FOMC March meeting will be the main headliner the coming week. This Fed meeting is especially important considering the unknowns emerging out of the Russia-Ukraine crisis. Market players will be looking for clues from the FOMC's assessment of the inflation risk and how aggressive it is willing to be with interest rate rises.
Back home, the domestic inflation rate would be the crucial parameter impacting market sentiments early next week as all eyes will be on the deviation between the actual print compared to RBI forecasts. Given these significant events, volatility may rise, and investors are recommended to continue cherry-picking resilient stocks while avoiding vulnerable counters.
Technically, the important key resistances are placed in Nifty future are at 16707 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 16737 – 16808 levels. Immediate support is placed at 16474 – 16303 levels.
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