Dear Trader…
Bulls remained in control on Dalal Street for the second day running and comfortable ended the day with gains of over a percent on Friday, led by strong buying support in IT, TECK and Capital Goods stocks amid a positive trend in global equities. Markets made optimistic start and stayed in green for whole day as traders got encouragement with economic research think-tank Centre for Monitoring Indian Economy (CMIE) has estimated that labour participation rate (LPR) was higher in rural India during the period January to April 2022. LPR, defined as the number of persons of the labour force employed as a percentage of working age population, is 40.9 in rural India as compared to 37.4 in urban India during the period January to April 2022.
Key gauges extended gains in late afternoon deals, amid a private report stating that India’s economy maintained its momentum in April as a wider reopening from the pandemic kept rising prices from depressing demand for the time being. Activity in the services sector as well as factories gained last month, while the three-month weighted averages of monthly changes in indicators from exports to credit demand suggested enduring strength.
Nifty futures opened at 16300.05 points against the previous close of 16168.10 and opened at a low of 16201.05 points. Nifty Future closed with an average movement of 148.05 points and a rise of around 169.90 points and 16169.05 points...!!
On the NSE, the midcap 100 index will rise 1.38% and smallcap 100 index is closing rise 1.36%. Speaking of various sectoral indices only Metal 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.50952, fell from a high of Rs.51060 points to a low of Rs.50850 with a rise of 111 points, a trend of around Rs.50982 and March Silver opened at Rs.61980, fell from a high of Rs.62887 points to a low of Rs.61980, with a rise of 856 points, a trend of around Rs.62649.
Meanwhile, in a bid to push public expenditure, the government has relaxed norms for ministries and department to utilise unspent amounts in the subsequent quarter in the same financial year. Ministries or departments are now permitted to utilise the unspent balances from Quarterly Expenditure Plan (QEP) for the first and second quarter within a financial year under intimation to the Budget Division for cash management purposes. Unspent balances from QEP-2 and QEP-3 may be utilised in QEP-3 and QEP-4 respectively only after formal and prior approval of the Expenditure Secretary has been obtained.
According to an office memorandum issued by the Budget Division of the Finance Ministry, ‘Ministry/Department should not under any circumstance presume prior approval of Expenditure Secretary. This has to be formally obtained prior to utilising the unspent balances. Seeking post facto approval is not an option’. No more than 33 per cent and 15 per cent of expenditure of the Budget Estimates during a financial year would be permissible in the last quarter and last month of the financial year, respectively. It also advised all Financial Advisers to ensure that Monthly Expenditure Plan or Quarterly Expenditure Plan (MEP/QEP) tracking of sanctions and concurrent expenditure against Budget provisions are available.
Technically, the important key resistances are placed in Nifty future are at 16404 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 16474 – 16505 levels. Immediate support is placed at 16303 – 16232 levels.
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