Dear Trader…
Snapping 3-day losing run, Indian equity benchmarks made a sharp recovery and ended with gains of around a percent on Thursday led by buying in Metal, Banking and Basic Materials stocks. Benchmarks made positive start, as traders took support with a private report that India’s economy is expected to have grown at 9.2 per cent in the fiscal ended March 2022, after having contracted by 7.3 per cent in the previous financial year, aided by resilience in the rural economy, uptick in bank credit and rising GST collections. However, key gauges erased initial gains and soon slipped into red terrain in morning deals, as traders turned cautious with continued selling by foreign investors.
But, markets witnessed healthy short covering towards the closing hours that helped key indices to end higher. Some support came as real estate developers in the national capital region said the central government's move to ease prices of iron, steel and cement will provide a significant relief to builders as well as homebuyers.
Nifty futures opened at 16091.60 points against the previous close of 16013.80 and opened at a low of 15885.10 points. Nifty Future closed with an average movement of 293.60 points and a rise of around 155.25 points and 16169.05 points...!!
On the NSE, the midcap 100 index will rise 1.35% and smallcap 100 index is closing rise 0.77%. Speaking of various sectoral indices only FMCG 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.50840, fell from a high of Rs.50860 points to a low of Rs.50580 with a decline of 115 points, a trend of around Rs.50704 and March Silver opened at Rs.61526, fell from a high of Rs.61640 points to a low of Rs.61240, with a decline of 156 points, a trend of around Rs.61378.
Meanwhile, the power ministry is working on a scheme for electricity distribution utilities (discoms) to pay off their dues mainly towards generating company (genco), which has the potential to save Rs 19,833 crore on account of late payment surcharge. The inability of Discoms to pay dues impacts the entire value chain of the power sector. Considering this situation, the Ministry of Power is working on a scheme to mitigate the financial woes of the Distribution Companies (Discoms) that are unable to pay their dues.
Delay of payments by a discom to a genco adversely affects the cash flow of the generating firm, which needs to make provisions for input supplies like coal, and for keeping adequate working capital for day-to-day operation of power plants. As per data available on the PRAAPTI portal, as on May 18, 2022, the discoms' overdues (excluding disputed amounts and Late Payment Surcharge (LPSC)) stood at Rs 1,00,018 crore. The LPSC dues were Rs 6,839 crore. The proposed scheme would enable payment of financial dues in easy instalments by the discoms.
Technically, the important key resistances are placed in Nifty future are at 16232 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 16272 – 16303 levels. Immediate support is placed at 16006 – 15808 levels.
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