Dear Trader…
Indian equity benchmarks held on to strong gains throughout the session and ended with gains of around two percent on Thursday amid a broad-based rally, as the Fed's first rate hike in more than three years and upbeat commentary on the world's largest economy boosted global shares. In line with the previous session, the benchmark opened gap-up, as sentiments got a boost with a private report stating that private equity and venture capital investments for the month of February 2022 were about $5.8 billion, 2.3 times the value recorded in February 2021 ($2.5 billion) and 24 per cent higher than investments in January 2022 ($4.6 billion).
Buying further crept in as commerce and Industry Minister Piyush Goyal stated that India's merchandise exports have reached almost $390 billion as of March 14 and will cross $400 billion in the current financial year. Besides, exchange data showed foreign institutional investors turned net buyers after their recent selling spree, picking up shares worth Rs 311.99 crore on Wednesday.
Nifty futures opened at 17218.00 points against the previous close of 17008.75 and opened at a low of 17188.15 points. Nifty Future closed with an average movement of 137.70 points and a rise of around 316.30 points and 17330.05 points...!!
On the NSE, the midcap 100 index will rise 1.38% and smallcap 100 index is closing rise 1.23%. Speaking of various sectoral indices only IT 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.51678, fell from a high of Rs.51784 points to a low of Rs.51366 with a rise of 435 points, a trend of around Rs.51582 and March Silver opened at Rs.67699, fell from a high of Rs.69000 points to a low of Rs.67699, with a rise of 1274 points, a trend of around Rs.68578.
Meanwhile, S&P Global Ratings in its latest report has said that large oil importers like India and Thailand will be the most affected among Asia-Pacific countries by the ongoing Russia-Ukraine war. S&P estimates the Indian economy to grow 7.8 per cent in the next fiscal year beginning April 1, 2022. Besides, the economy is expected to grow 6 per cent and 6.5 per cent in 2023-24 and 2024-25, respectively. It projected inflation at 5.4 per cent in the current fiscal year.
It said banks in Asia-Pacific (APAC) region have small direct exposure to Russia which will soften the impact of the conflict, but proximate downside risks -- in particular, actual and potential secondary economic and other risks -- lie ahead. As per the report, the biggest risk of the Ukraine conflict is market volatility and higher commodity prices; emerging economies with large energy imports are most at risk.
India relies on overseas purchases to meet about 85 per cent of its oil requirement, making it one of the most vulnerable in Asia to higher oil prices. International oil prices had climbed to a 14-year high of near $140 per barrel last week on fears of supply disruption following Russia's invasion of Ukraine beginning February 24. Rates have since eased to around $100 per barrel. S&P said India and Thailand are large oil importers and will be the most affected among large Asia-Pacific countries.
Technically, the important key resistances are placed in Nifty future are at 17373 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 17404 – 17474 levels. Immediate support is placed at 17170 – 17007 levels.
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