Dear Trader…
The SGX Nifty had 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 on Monday. 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 the previous close. The following session looked promising; but Nifty was struggling to surpass the sturdy wall around 18250 – 18300. Finally, this failure translated into a price drop around the mid-week. The selling augmented towards the fag end of the week and in the process, we went on to slide below 17900 during Friday’s session.
Traders are advised to keep a close tab on all these above-mentioned scenarios. The only positive takeaway at the end of the week would be the resilience of the broader market. Unlike last-to-last week’s decline, this time, the Nifty MIDCAP50 index remained firm and did not participate in this week’s hammering. In case of recovery, the broader end of the spectrum would outperform heavyweights and we would probably then witness a beginning of the pre-budget rally. Also, with result season kicking in on Monday, all focus would first be on major IT heavyweights, which would dictate the near-term direction for this underperforming space.
Nifty futures opened at 18073.60 points against the previous close of 18066.00 and opened at a low of 17872.05 points. Nifty Future closed with an average movement of 259.95 points and a decline of around 122.80 points and 17943.20 points...!!
On the NSE, the midcap 100 index will decline 0.76% and smallcap 100 index is closing decline 0.81%. Speaking of various sectoral indices Only FMCG stocks saw selling on the NSE, while all other sectoral indices also closed lower.
At the start of intra-day trading, January gold opened at Rs.55382, fell from a high of Rs.55430 points to a low of Rs.55291 with a rise of 55 points, a trend of around Rs.55345 and January Silver opened at Rs.68389, fell from a high of Rs.68665 points to a low of Rs.68242, with a rise of 358 points, a trend of around Rs.68436.
Meanwhile, the Securities and Exchange Board of India (Sebi) has extended the relaxation to listed companies from dispatching of physical copies of financial statements till September 30, 2023. Coal industry stocks will be in focus as the dispatch of coal to different sectors was at 78.91 million tonnes (MT) in December, registering a rise of 5.28 per cent. The coal dispatch in the corresponding month of previous fiscal was 74.95 MT.
The US markets ended lower on Thursday as evidence of a tight labor market eroded hopes that the Federal Reserve could pause its rating hiking cycle anytime soon as it keeps focused on inflation. Asian markets are trading mixed on Friday as a better-than-expected reading of ADP private payrolls report showed that employers added 235,000 jobs in December, showing a strong labor market.
Technically, the important key resistances are placed in Nifty future are at 18008 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 18088 – 18108 levels. Immediate support is placed at 17808 – 17676 levels.
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