Dear Trader…
Generally, the Muhurat Trading day is considered a lull session but this time, we kicked off the new SAMVAT as well as the week with a decent bump up on Monday. Importantly, unlike most of the Muhurat sessions, the gains were here to stay as we managed to hold the initial lead convincingly. This was followed by back-to-back gap openings but the follow-up was clearly missing. Eventually, the range-bound week ended with more than a percent gains on a weekly basis.
Although, despite being a truncated week, we managed to add something on a week-on-week basis; practically, the trading action was very dull. Traders are advised to remain upbeat and keep a close watch on thematic moves which may unfold in the first of the forthcoming week. The banking has taken a pause after the recent run but soon it is likely to move beyond all-time highs to enter uncharted territory.
We may see further consolidation in the index and expect a similar trend on the global front as well. After the recent outperformance, banking may also take a breather and index majors from other sectors are likely to fill in the gap. Participants should maintain their focus on sector/stock selection and utilise dips to add during consolidation.
Nifty futures opened at 17781.00 points against the previous close of 17789.20 and opened at a low of 17773.30 points. Nifty Future closed with an average movement of 113.80 points and a rise of around 47.80 points and 17803.10 points...!!
On the NSE, the midcap 100 index will decline 0.54% and smallcap 100 index is closing decline 1.00%. Speaking of various sectoral indices, the NSE saw gains in only Auto and Oil & Gas stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, December gold opened at Rs.50765, fell from a high of Rs.50795 points to a low of Rs.50301 with a decline of 337 points, a trend of around Rs.50400 and December Silver opened at Rs.58389, fell from a high of Rs.58464 points to a low of Rs.57330, with a decline of 603 points, a trend of around Rs.57675.
Meanwhile, Capital markets regulator SEBI has said block mechanism facility pertaining to demat accounts will not be applicable for clients having arrangements with custodians for clearing and settling trades. Electric Utilities industry stocks will be in focus as the International Energy Agency (IEA) in its World Energy Outlook said India is likely to see the world's biggest rise in energy demand this decade, with demand climbing 3 per cent annually due to urbanisation and industrialisation.
There will be some reaction in textile industry stocks as Union minister Piyush Goyal said India’s textiles sector aims to hit $100 billion exports in 5-6 years, which would take the industry’s combined domestic and international economic value to $250 billion. Outbound shipments from the country’s textiles segment stood at around $42 billion in 2021-22.
Technically, the important key resistances are placed in Nifty future are at 17930 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 18008 – 18088 levels. Immediate support is placed at 17770 – 17676 levels.
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