Dear Trader…
Snapping a three - day losing streak, Indian equity benchmarks ended higher on Friday, led by a strong buying support in the index heavyweights ITC, Mahindra & Mahindra and Dr. Reddy's Lab. After making positive start, key indices swung between losses and gains, as traders got anxious with the finance ministry said the current elevated level of international crude price, should it persist for a long time, may come in the way of India achieving a real economic growth rate of 8%-plus in FY23 and pose upside risks to inflation as well. But, markets rallied sharply in afternoon deals, as the monetary policy committee (MPC) decided to hold repo rate at 4% and the reverse repo rate at 3.35%. While the RBI's rate-setting panel maintained its accommodative stance, it also voted unanimously to focus on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth.
Sentiments were also upbeat as RBI Governor Bimal Jalan has said that the country’s economy is in good shape as India’s GDP growth rate and foreign exchange reserve are high. Notwithstanding economic uncertainties triggered by the Russia-Ukraine war that is also impacting the global supply chain, Jalan said it is not going to affect India’s economic performance.
Nifty futures opened at 17745.00 points against the previous close of 17730.35 and opened at a low of 17656.30 points. Nifty Future closed with an average movement of 288.50 points and a rise of around 164.60 points and 17894.95 points...!!
On the NSE, the midcap 100 index will rise 0.98% and smallcap 100 index is closing rise 0.39%. 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, April gold opened at Rs.51734, fell from a high of Rs.51943 points to a low of Rs.51681 with a decline of 117 points, a trend of around Rs.51780 and March Silver opened at Rs.66770, fell from a high of Rs.67031 points to a low of Rs.66371, with a decline of 257 points, a trend of around Rs.66508.
Meanwhile, expressing optimism over state of Indian economy, former RBI Governor Bimal Jalan has said that the country’s economy is in good shape as India’s GDP growth rate and foreign exchange reserve are high. Notwithstanding economic uncertainties triggered by the Russia-Ukraine war that is also impacting the global supply chain, Jalan said it is not going to affect India’s economic performance. He added that India’s current macroeconomic situation is quite positive in the sense that the rate of growth is high. India’s foreign exchange reserve is also very high.
However, the former RBI governor has stressed that unemployment is high, which is a matter of concern. As the Russia-Ukraine crisis is concerned, he said obviously, it will have an impact all over the world. He said but so far India is concerned, its relationship with Russia was quite good but exports-imports was not very much, and added that it was less than 2 per cent. While observing that development in Ukraine is a matter of concern, he said it is not going to affect India’s economic performance.
Technically, the important key resistances are placed in Nifty future are at 18970 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 18008 – 18088 levels. Immediate support is placed at 17808 – 17737 levels.
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