Dear Trader…
Indian equity benchmarks snapped a five - day losing run and ended higher by over a percent on Wednesday with the help of strong buying support in Auto, Energy and Oil & Gas stocks. A largely positive trend in global equities also helped the benchmarks get back on their feet. Markets made positive start and stayed in green for whole day, as traders took encouragement as describing the Indian economy's recovery from the COVID-19 pandemic as distinct and pronounced, Finance Minister Nirmala Sitharaman exuded confidence about India posting robust economic growth this decade.
Sentiments remained positive in late afternoon deals, as India is planning to set up “digital only” banks and non-banking financial companies (NBFCs) to ensure that business continuity in the lending system is not affected even in exceptional times. Besides, the government has set the foodgrain production target at a record level of 328 million tonnes for the 2022-23 crop year on the back of good monsoon rains. The target is 3.8 per cent higher compared to previous year's output.
Nifty futures opened at 17040.00 points against the previous close of 16969.35 and opened at a low of 16996.85 points. Nifty Future closed with an average movement of 222.85 points and a rise of around 203.50 points and 17172.85 points...!!
On the NSE, the midcap 100 index will rise 0.75% and smallcap 100 index is closing decline 0.18%. Speaking of various sectoral indices only Media, Metal, PSU Bank, Bank and Financial Services 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.52562, fell from a high of Rs.52634 points to a low of Rs.52310 with a decline of 250 points, a trend of around Rs.52499 and March Silver opened at Rs.68617, fell from a high of Rs.68620 points to a low of Rs.67973, with a decline of 621 points, a trend of around Rs.68149.
Meanwhile, the International Monetary Fund (IMF) in its latest World Economic Outlook (WEO) report has slashed its gross domestic product (GDP) growth forecast of India to 8.2 per cent for fiscal year 2022-23 (FY23) from 9 per cent forecasted earlier. It said that higher commodity prices will weigh on private consumption and investment. This was one of the steepest cuts for emerging economies compared to the IMF’s January WEO forecasts.
The agency cut its global growth outlook for calendar year 2022 to 3.6 per cent from 4.4 per cent, saying that global economic prospects have worsened significantly due to commodity price volatility and disruption of supply chains caused by the war in Europe and added that both Russia and Ukraine could experience large GDP contractions.
As per the report, the multilateral institution cut the calendar year 2022 (or fiscal year 2022-23 in case of India and some other nations) GDP forecast for almost all developed and emerging economies. Notable downgrades to the 2022 forecast include Japan (0.9 percentage point) and India (0.8 percentage point), reflecting in part weaker domestic demand - as higher oil prices are expected to weigh on private consumption and investment - and a drag from lower net exports.
Technically, the important key resistances are placed in Nifty future are at 17202 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 17272 – 17303 levels. Immediate support is placed at 17077 – 17007 levels.
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