Dear Trader…
Indian equity benchmarks rebounded from early lows to close over a per cent higher on Tuesday, helped by heavy buying in index heavyweights Tech Mahindra, Reliance Industries and Bajaj Finserv amid gains in global equities. After making cautious start, domestic markets traded in the red for most part of the session, as traders were worried as rating agency Fitch in its Global economic Outlook-March 2022 has slashed India's growth forecast for the next fiscal to 8.5 per cent from 10.3 per cent. The agency slashed India's growth forecast on account of sharply higher energy prices.
However, the domestic bourses recovered from intraday losses during late deals to end higher, taking support from Reserve Bank Governor Shaktikanta Das’ statement that the RBI will continue to ensure adequate liquidity to support the economy, which is facing many headwinds in the form of soaring crude oil and key commodity prices following the Russian invasion of Ukraine. Some support also came as Commerce and Industry Minister Piyush Goyal stating that several ministries, which are related to e-commerce, are deliberating on the e-commerce policy draft and it will be put out in the public domain after discussions.
Nifty futures opened at 17141.00 points against the previous close of 17158.65 and opened at a low of 17051.00 points. Nifty Future closed with an average movement of 332.75 points and a rise of around 222.25 points and 17380.90 points...!!
On the NSE, the midcap 100 index will rise 0.28% and smallcap 100 index is closing rise 0.28%. Speaking of various sectoral indices only Realty, FMCG and Pharma 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.51770, fell from a high of Rs.51949 points to a low of Rs.51400 with a decline of 135 points, a trend of around Rs.51520 and March Silver opened at Rs.68682, fell from a high of Rs.69090 points to a low of Rs.67552, with a decline of 582 points, a trend of around Rs.67767.
Meanwhile, notwithstanding fears of imported inflation given the massive spike in commodity prices, especially crude oil, after Russia invaded Ukraine last month, Reserve Bank of India (RBI) Governor Shaktikanta Das has said there is no prospect of the economy falling into a stagflation vortex and retail inflation is expected to moderate going forward. Stagflation or recession-inflation is a situation in which prices rise too high but the economy slows or falls into a recession like situation and also unemployment jumps.
Under the agreement with the government the Reserve Bank has to ensure that CPI inflation remains at 4 per cent with a margin of 2 per cent on either side. Already retail inflation has risen to 6.07 per cent in February, crossing the upper band of the Parliamentary mandate. This is the second consecutive month in 2022 when retail inflation has crossed the 6 per cent mark having hit 6.01 per cent in January. The previous high was 6.26 per cent in June 2021. Similarly wholesale price inflation in February rose to 13.11 per cent on hardening of prices of crude and non-food items, even though food articles softened.
Technically, the important key resistances are placed in Nifty future are at 17404 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 17434 – 17474 levels. Immediate support is placed at 17170 – 17007 levels.
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