Dear
Trader…
Nifty traded
negative in the first half, despite positive US and India inflation data.
Buying emerged in the second half taking the Nifty future higher to end with
gains of 106 points (0.59%) at 18025 levels. Broader markets however closed on
a mixed note. Except FMCG and consumer durables, all other sectors ended in
green with metals and PSU banks gaining more than 1%.
US CPI data
for the month of December fell to 6.5%, which is leading to expectation of less
aggressive interest rate hikes by US Fed going ahead. On the domestic front,
CPI inflation further eased to 5.72% in Dec, while IIP growth improved to 7.1%
in Nov’22. IT results so far came in better than estimates, thus alleviating
concerns with regards to growth slowdown on account of macro headwinds. Though
the sector may see some more consolidation given macro uncertainties, we
believe valuations have largely corrected and offers value buying at these
levels.
Nifty
futures opened at 17940.00 points against the previous close of 17918.65 and
opened at a low of 17835.55 points. Nifty Future closed with an average
movement of 252.60 points and a rise of around 106.60 points and 18025.25
points…!!
On the NSE,
the midcap 100 index will decline 0.10% and smallcap 100 index is closing rise 0.29%.
Speaking of various sectoral indices only FMCG and Pharma 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.55915, fell from a high of Rs.56245
points to a low of Rs.55900 with a rise of 146 points, a trend of around Rs.56021
and March Silver opened at Rs.68717, fell from a high of Rs.68916 points to a
low of Rs.68164, with a decline of 394 points, a trend of around Rs.68249.
Traders
remained cautious as a World Economic Forum’s report stated that a cost of
living crisis, digital inequality, geopolitical contest for resources, natural
disasters and extreme weather events are the biggest risks for India over the
short and medium term. Some anxiety also came with a private report stating
that funding for Indian startups dropped by 33 per cent to $24 billion in 2022
as compared to the previous year though it was nearly double the amount
recorded in 2019 or 2020. Unabated foreign fund outflows also hit the investor
sentiment. Foreign institutional investors (FIIs) offloaded shares worth Rs
3,208.15 crore on Wednesday, according to exchange data.
However,
indices trimmed most of their losses in the final hours. Traders found some
support with the government’s data showing that the country’s gross direct tax
collection rose 24.58 per cent to Rs 14.71 lakh crore till January 10 this
fiscal, buoyed by an upsurge in personal income tax mop-up. After adjusting
refunds, net direct tax collection stood at Rs 12.31 lakh crore, 19.55 per cent
higher than the net collections for the corresponding period of last year.
Traders also
took a note of Road Transport and Highways Minister Nitin Gadkari’s statement
that India and Japan will undertake joint projects for digital transformation
in the areas of Intelligent Transport Systems (ITS) and eco-friendly mobility.
Further, he said India has always placed the Indo-Pacific at the heart of its
engagement with the countries of Southeast and East Asia under India’s Act East
Policy.
Technically, the important key resistances are placed in Nifty future are at 18088 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 18108 – 18180 levels. Immediate support is placed at 17808 – 17676 levels.
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