Dear Trader…
Indian equity benchmarks remained under a grip of bulls in today session, with both Sensex and Nifty maintaining their gaining rally, on the back of positive cues from other Asian markets. Domestic sentiments remained positive, as Sanjiv Mehta, President of the Federation of Indian Chambers of Commerce and Industry (FICCI) said that the Comprehensive Economic Partnership Agreement (CEPA), India's Free Trade Agreement with UAE, is good for all types of businesses and industries be it small scale or large scale and holds benefit for both goods and services sector. Besides, Underlining that India dealt with the pandemic with ingenious methods, Union Commerce Minister Piyush Goyal said the country converted a crisis into an opportunity.
Nifty futures opened at 17501.30 points against the previous close of 17368.05 and opened at a low of 17425.00 points. Nifty Future closed with an average movement of 114.95 points and a rise of around 125.25 points and 17493.30 points...!!
On the NSE, the midcap 100 index will rise 0.85% and smallcap 100 index is closing rise 0.97%. Speaking of various sectoral indices only Metal 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.50979, fell from a high of Rs.51251 points to a low of Rs.50811 with a rise of 352 points, a trend of around Rs.51165 and March Silver opened at Rs.67248, fell from a high of Rs.67773 points to a low of Rs.67082, with a rise of 619 points, a trend of around Rs.67566.
Meanwhile, Domestic ratings agency ICRA has cut its FY23 real Gross domestic product (GDP) growth estimate by a sharp 0.8 per cent to 7.2 per cent. It attributed the downward revision to elevated commodity prices and also fresh supply chain issues arising from the conflict in Ukraine. It noted that real GDP growth is likely to moderate to 3-4 per cent in Q4FY22 from 5.4 per cent in Q3FY22, which will lead to FY22 real GDP growth rate at 8.5 per cent.
The report said as expected, the third wave had a much smaller impact on confidence levels relative to the first two waves. It said while the early data for March 2022 is mixed, the Russia-Ukraine conflict and the associated surge in commodity prices has heightened uncertainty, and the expected margin compression is likely to squeeze GVA growth. It stated that higher prices of fuels and items such as edible oils are likely to compress disposable incomes in the mid to lower income segments, constraining the demand revival in FY23.
According to the report, exports of some items will rise to meet global demand amid the supply crunch, and the capacity utilisation levels will rise to 74-75 per cent in Q3 FY23 from 71-72 per cent in Q4 FY22, and this can lead to a modest delay in the much awaited broad-basing of capacity expansion by the private sector. It said an early kick-off of the Centre's budgeted capex programme remains crucial to boost investment activity in first half of FY23.
Technically, the important key resistances are placed in Nifty future are at 17537 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 17606 – 17636 levels. Immediate support is placed at 17170 – 17077 levels.
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