Dear Trader…
Indian shares extended gains for the second session on Tuesday, helped by an uptick in financials on strong quarterly updates. Most of the major sectoral indexes closed with gains after a weak start, with the high-weightage financials rising 0.64% and IT stocks adding 0.78%. In the absence of major economic triggers, the domestic market shifted its focus towards the Q3 earnings season, which is set to kick off this week. Banks' initial quarterly business results revealed solid business traction supported by robust loan growth. IT and banks will take centre stage in the coming days as the trend in the market will be determined by the early signals from sector majors.
Nifty futures opened at 18234.90 points against the previous close of 18275.85 and opened at a low of 18210.05 points. Nifty Future closed with an average movement of 123.85 points and a rise of around 41.45 points and 18317.30 points...!!
On the NSE, the midcap 100 index will rise 0.23% and smallcap 100 index is closing rise 0.27%. Speaking of various sectoral indices only Media, Metal, Auto and FMCG 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.55280, fell from a high of Rs.55800 points to a low of Rs.55280 with a rise of 314 points, a trend of around Rs.55492 and January Silver opened at Rs.69850, fell from a high of Rs.71120 points to a low of Rs.69850, with a rise of 979 points, a trend of around Rs.70550.
Sentiments got boost with the Finance Ministry stating that gross GST revenue receipts in December 2022 totalled nearly Rs 1.5 lakh crore, up 15% year-on-year. It mentioned monthly GST revenues more than Rs 1.4 lakh crore for 10 straight months in a row. Buying further crept in as a private survey showed that with business conditions improving to the greatest extent in over two years, India's manufacturers ended 2022 on a sweet note. Manufacturers scaled up production and the upturn in output was sharp and the best seen since November 2021. The manufacturing purchasing managers' index, compiled by S&P Global, rose to 57.8 in December from November's 55.7. This reading is the highest since October 2020 and above the 50-mark that separates growth from contraction for an 18th straight month.
However, key gauges trimmed some of their gains in late afternoon deals, as some concern came with RBI’s data showing that India's forex reserves dropped by $691 million to $562.81 billion as of December 23, making it the second consecutive week of decline in the kitty. The overall reserves had dropped by $571 million to $563.499 billion in the previous reporting week, snapping a five-week trend of an increase in the kitty. But, markets soon gained traction to end near day’s high points, as traders got encouragement with data showing that the output of eight core industries increased by 5.4 per cent in November 2022 as against a 3.2 per cent growth in the same month last year on a better show by coal, fertiliser, steel, cement and electricity segments.
Technically, the important key resistances are placed in Nifty future are at 18373 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 18404 – 18434 levels. Immediate support is placed at 18188 – 18088 levels.
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