Dear Trader…
Markets started the week with an uptick and gained nearly one and a half percent, tracking upbeat global cues. After the gap-up opening, the Nifty Future index maintained a positive tone for most of the session and finally settled at 18,173.20 levels. The surprise recovery in the IT majors, ahead of the TCS numbers, contributed significantly to the rebound. Besides, a surge in energy, metal, auto and banking majors further added to the positivity. The broader indices too ended higher and gained in the range of 0.5%-0.8%.
Markets will react to the TCS numbers in the early trade. Besides, the performance of the global indices will also be in focus. On the index front, a decisive close above 18260 levels in Nifty may result in further recovery else the decline would resume. Meanwhile, we recommend continuing with stock-specific trading approach with a focus on risk management.
Nifty futures opened at 18028.00 points against the previous close of 17943.20 and opened at a low of 18018.90 points. Nifty Future closed with an average movement of 209.10 points and a rise of around 230.00 points and 18173.20 points...!!
On the NSE, the midcap 100 index will rise 0.94% and smallcap 100 index is closing rise 0.55%. Speaking of various sectoral indices, IT, Metal, Auto, PSU Bank, Bank and PVT Bank stocks saw heavy gains on the NSE, while all other sectoral indices also closed higher.
At the start of intra-day trading, February gold opened at Rs.55800, fell from a high of Rs.56175 points to a low of Rs.55800 with a rise of 344 points, a trend of around Rs.56087 and March Silver opened at Rs.69500, fell from a high of Rs.69835 points to a low of Rs.69140, with a rise of 245 points, a trend of around Rs.69400.
Foreign institutional investors (FII) sold shares worth Rs 1,449.45 crore on January 5, as per provisional data available on the NSE. The sentiments were downbeat with a private report stated that India's economy is expected to grow 5.5% in the next financial year, a notch below the expected potential rate of 6%, as growth momentum in the country was slowing gradually. Adding to the pessimism, Union Health Ministry data updated on Friday showed that India recorded 228 new coronavirus infections, while the number of active cases decreased to 2,503. The total number of cases involving Covid was 4.46 crore (4,46,79,547).
However, frontline indices managed to trim some losses towards the end taking support from the report that the commerce and industry ministry is hopeful of improvement in foreign direct investment (FDI) inflows in the coming months despite global headwinds. Traders also took a note of report that Israel's newly-appointed Foreign Minister Eli Cohen and his Indian counterpart S Jaishankar have discussed about ways to strengthen bilateral ties, including ways to promote Free Trade Agreement (FTA) and projects in the field of innovation, food and water security.
Technically, the important key resistances are placed in Nifty future are at 18202 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 18272 – 18303 levels. Immediate support is placed at 18008 – 17939 levels.
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