Dear Trader…
Markets traded volatile in a narrow range and ended almost unchanged, taking a breather after Tuesday’s decline. After the initial downtick, the Nifty oscillated in a range till the end and settled at 17895.70 levels. Meanwhile, most sectoral indices traded in line with the benchmark and closed marginally lower however rebound in banking and metal majors capped the damage.
Participants are having a tough time dealing with prevailing volatility amid the corrective phase and we do not expect any relief soon, citing the upcoming events & ongoing earnings season. We thus reiterate our view to limit positions and prefer hedged trades. Investors, on the other hand, should see this decline as a buying opportunity and gradually accumulate quality stocks on dips.
Nifty futures opened at 18000.00 points against the previous close of 17986.25 and opened at a low of 17890.45 points. Nifty Future closed with an average movement of 174.55 points and a decline of around 23.30 points and 17962.95 points...!!
On the NSE, the midcap 100 index will decline 0.32% and smallcap 100 index is closing decline 0.05%. Speaking of various sectoral indices only FMCG, Pharma, Auto and Realty stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, February gold opened at Rs.55819, fell from a high of Rs.55930 points to a low of Rs.55704 with a rise of 74 points, a trend of around Rs.55786 and March Silver opened at Rs.68501, fell from a high of Rs.69224 points to a low of Rs.68480, with a rise of 457 points, a trend of around Rs.68820.
According to exchange data, foreign Institutional Investors (FIIs) offloaded shares worth Rs 203.13 crore on Monday. Key gauges extended fall in afternoon deals, as sentiments remained negative, amid a private report stating that the impact of COVID-19, combined with geopolitical turmoil, an economic crisis and natural disasters, has pushed social progress backwards.
During the session, markets participants ignored a private report stating that India's retail inflation is likely to remain steady in December, staying within the Reserve Bank of India's comfort zone for a second month as a moderation in food price rises was partly offset by elevated core inflation. It said retail inflation is likely remained steady at 5.9% in December.
Traders also overlooked Chief Economic Advisor (CEA) V Anantha Nageswaran’s statement that the Indian economy will be $3 trillion by the end of the current 2022-23 fiscal and is expected to be $7 trillion in the next seven years. He also said that the calendar year 2023 began in the context of the continuing conflict between Russia and Ukraine, which will create geo-political and geo-economic uncertainties.
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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