Dear Trader…
Indian benchmark indices ended nearly one percent higher in the highly volatile session on Thursday, led by gains in Auto, Consumer Discretionary and IT stocks despite fears of rising rates and recession across the globe. Indian markets opened on a positive note, as sentiments got a boost with Prime Minister Narendra Modi’s statement that the government expects the Indian economy to grow by 7.5 per cent this year. Traders took note of a private report that sowing of kharif crops like soyabean, paddy, cotton has picked up in the country amid an advancing monsoon.
However, during the afternoon session markets trimmed all of their gains to trade with minor cuts But, selling proved short-lived as key gauges bounced back in afternoon deals to close higher taking support from a private reports stating that the corporate profit to Gross Domestic Product (GDP) ratio rebounded to a decade high of 4.3 per cent and 4.5 per cent for the Nifty-500 universe and listed India companies, respectively. The recovery was driven by the expansion in the economy, after a Covid-led contraction in 2021, while corporate profit rose at a faster rate of 48 per cent year-on-year for the Nifty 500 companies.
Nifty futures opened at 15431.00 points against the previous close of 15403.40 and opened at a low of 15360.00 points. Nifty Future closed with an average movement of 269.00 points and a rise of around 188.35 points and 15591.75 points...!!
On the NSE, the midcap 100 index will rise 1.21% and smallcap 100 index is closing rise 1.31%. Speaking of various sectoral indices, Auto, IT, Realty, Pharma and Media stocks saw heavy gains on the NSE, while all other sectoral indices also closed higher.
At the start of intra-day trading, August gold opened at Rs.50800, fell from a high of Rs.50910 points to a low of Rs.50578 with a decline of 173 points, a trend of around Rs.50731 and July Silver opened at Rs.60374, fell from a high of Rs.60400 points to a low of Rs.59752, with a decline of 583 points, a trend of around Rs.60065.
Meanwhile, Reserve Bank of India (RBI) in its latest report has showed that India witnessed a current account deficit (CAD) of 1.2 per cent of Gross Domestic Product (GDP) in fiscal year 2021-22 (FY22) against a surplus of 0.9 per cent in FY2020-21 due to a wider trade deficit. Current account deficit occurs when the value of goods and services imported and other payments exceeds the value of export of goods and services and other receipts by a country in a particular period.
The central bank said the trade deficit widened to $189.5 billion in FY22 from $102.2 billion a year ago, which resulted in slippage in the number which is considered a key representation of a country's external strength.
The Balance of Payments data suggested that goods imports stood at $618.6 billion in FY22 as against $398.5 billion in the year-ago period, leading to the widening of the trade deficit. Besides, for the January-March 2022 quarter (Q4FY22), the CAD narrowed on a sequential basis to $13.4 billion or 1.5 per cent of GDP against $22.2 billion or 2.6 per cent of GDP in the December 2021 quarter.
Technically, the important key resistances are placed in Nifty future are at 15636 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 15707 – 15777 levels. Immediate support is placed at 15373 – 15202 levels.
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