Dear Trader…
Markets welcomed 2023 on a high spirit in the absence of global cues. Strong macros and expectations of healthy corporate earnings provided the support to domestic equites. India’s manufacturing PMI rose to 13month high to 57.8 in December, while, GST collection too rose by 15% in Dec’2022 to 1.49 lakh crore, thus, supporting overall sentiments in the market.
The SGX Nifty indicated a soft opening for the new calendar year. However, our markets completely shrugged off these cues as they started the session marginally in the green. We did see some ambiguity in the first half; but with few heavyweights attracting strong buying around the mid-session, Nifty picked up decent momentum in the upward direction. Eventually, we ended the inaugural session around day’s high by adding half a percent to Friday’s close.
Nifty futures opened at 18209.00 points against the previous close of 18206.85 and opened at a low of 18164.70 points. Nifty Future closed with an average movement of 129.70 points and a rise of around 69.00 points and 18275.85 points...!!
On the NSE, the midcap 100 index will rise 0.88% and smallcap 100 index is closing rise 0.69%. Speaking of various sectoral indices only Pharma stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, January gold opened at Rs.55052, fell from a high of Rs.55200 points to a low of Rs.55040 with a rise of 148 points, a trend of around Rs.55165 and January Silver opened at Rs.69503, fell from a high of Rs.69680 points to a low of Rs.69433, with a rise of 142 points, a trend of around Rs.69555.
On the global front key data points that would be keenly tracked would be the release of FOMC meeting minutes, PMI and nonfarm payroll data for US during the week. Going forward, we expect market to remain steady with a positive bias ahead of the Dec quarterly results and run up to the crucial Union Budget in February.
This should drive sector specific action in the market. Metals are likely to continue its northward movement as it benefits from the exports duty hike in China along with fall in the US dollar index – which is down to 7 months’ low at 103. Some stock specific action would be also seen in Auto sector stocks after it reported decent December sales numbers. Oil producing companies would be focus as Brent crude prices surged to 1 month high.
We expect the prevailing consolidation to continue in the index citing mixed global cues and lack of any major trigger however the tone is likely to remain positive until the Nifty Future breaks 18088 levels. Participants should maintain their focus on identifying stocks from across sectors, barring Pharma. At the same time, one shouldn’t get carried away with the recovery in the broader indices and stick with the fundamentally sound counters.
Technically, the important key resistances are placed in Nifty future are at 18303 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 18373 – 18404 levels. Immediate support is placed at 18180 – 18088 levels.
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