Dear Trader…
Snapping their four-day losing run, Indian equity benchmarks ended higher by over half percent, led by gains in Telecom, Energy and Oil & Gas stocks. Indices made a weak start and remained volatile for most part of the day, as investors were worried that aggressive policy tightening by central banks could stifle global economic growth. Traders also were concerned as the Organization for Economic Cooperation and Development (OECD) pegged India’s FY23 economic growth at 6.9 per cent, the lowest by a major bank or institution, saying the country had been adversely affected by Russia’s invasion of Ukraine.
However, in the noon trade, the indices made smart recovery, taking support from Chief Economic Advisor (CEA) Anantha Nageswaran’s statement that the impact of structural reforms, like Goods and Services Tax (GST) and Insolvency and Bankruptcy Code (IBC), will help boost India's growth once the cloud of the pandemic and geopolitical conflict recedes.
Nifty futures opened at 16278.00 points against the previous close of 16364.80 and opened at a low of 16268.60 points. Nifty Future closed with an average movement of 228.20 points and a rise of around 120.20 points and 16485.00 points...!!
On the NSE, the midcap 100 index will rise 0.49% and smallcap 100 index is closing rise 0.21%. Speaking of various sectoral indices only Metal and PSU Bank 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.51046, fell from a high of Rs.51135 points to a low of Rs.50850 with a decline of 87 points, a trend of around Rs.50964 and March Silver opened at Rs.62056, fell from a high of Rs.62240 points to a low of Rs.61665, with a decline of 294 points, a trend of around Rs.61732.
Meanwhile, Reserve Bank of India (RBI) Governor Shaktikanta Das has said India’s current account deficit (CAD) will remain at a sustainable level and the normal flows will help RBI to finance it. The country’s current account deficit increased to USD 23 billion, or 2.7 per cent of GDP, in the third quarter of FY 2021-22 from USD 9.9 billion or 1.3 per cent of GDP in the second quarter and USD 2.2 billion (0.3 per cent of GDP) in Q3 of fiscal 2020-21.
The widening of CAD in Q3 FY22 was mainly on account of higher trade deficit. He said there has been a rise in exports and imports. He stated higher exports are the good signs of the economy. Higher imports also augur well and it means that there is capital expenditure and investment which is taking place or is going to take place.
Further, talking about the Indian economy, he said the country is well placed to deal with the challenges emanating from the geopolitical developments. He noted that the recovery is gaining traction and it is reflected in the fact that capacity utilisation has improved. Disbursal of bank credit is also picking up. Rural and urban demand are showing signs of further improvement. Overall macroeconomic numbers broadly look alright.
Technically, the important key resistances are placed in Nifty future are at 16530 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 16606 – 16676 levels. Immediate support is placed at 16404 – 16373 levels.
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