Dear Trader…
Markets traded volatile on the weekly expiry day and ended marginally in the red. After the flat start, the Nifty future slipped below the crucial support of 18000 levels and inched gradually lower as the day progressed. However, a marginal rebound in the final hour trimmed losses and it finally settled at 18,066.00 levels. Meanwhile, a mixed trend was witnessed on the sectoral front wherein pressure in banking and IT majors weighing on sentiment and recovery in FMCG, Auto and metal counters capped the damage. The broader indices outperformed the benchmark and ended flat to marginally in the green.
Markets have been drifting lower amid mixed signals from the global front however the pace of decline is gradual, thanks to rotational buying in select index majors from across sectors. Technically, Nifty has retested the crucial support of medium term moving average i.e. 100 EMA on the daily chart and indications are pointing toward the negative bias to continue. Amid all, we recommend continuing with stock-specific approach while keeping a check on the position size.
Nifty futures opened at 18155.00 points against the previous close of 18103.05 and opened at a low of 17964.40 points. Nifty Future closed with an average movement of 225.60 points and a decline of around 37.05 points and 18066.00 points...!!
On the NSE, the midcap 100 index will rise 0.50% and smallcap 100 index is closing rise 0.03%. Speaking of various sectoral indices only Financial Services, Bank, PVT Bank, Bank and IT 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.55794, fell from a high of Rs.55920 points to a low of Rs.55495 with a decline of 247 points, a trend of around Rs.55520 and January Silver opened at Rs.69330, fell from a high of Rs.69409 points to a low of Rs.67986, with a decline of 908 points, a trend of around Rs.68410.
key gauges gradually inched lower as the day progressed amid foreign fund outflows. Foreign institutional investors (FII) sold shares worth Rs 628.07 crore on January 3, as per provisional data available on the NSE. Market participants awaited a slew of U.S. data and the latest FOMC meeting minutes this week for additional clues on when and where interest rates might peak. Traders took a note of report that Micro-Finance Institution Network (MFIN), a self-regulatory organisation (SRO) recognised by RBI, said that outstanding loan portfolio of the micro-finance institution (MFI) sector across India will increase around 20.3 per cent at Rs 3.25 lakh crore in 2022-23 compared to the previous fiscal.
Markets managed to trim some losses in late afternoon deals, taking support from reports that India’s services sector growth expanded further in the month of December, with a quicker upturn in new business boosting output growth. More jobs were created and companies remained strongly upbeat towards the year-ahead outlook for business activity. As per the survey report, the seasonally adjusted S&P Global India Services PMI Business Activity Index surged to 58.5 in December from 56.4 in November. However, markers failed to hold recovery and ended with sharp cuts as traders shifted focus towards the upcoming quarterly earnings season, with IT giant TCS likely to unveil its earnings on January 9.
Technically, the important key resistances are placed in Nifty future are at 18108 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 18180 – 18303 levels. Immediate support is placed at 18008 – 17939 levels.
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