Dear Trader…
Indian equity benchmarks extended losses in today deals, with both Sensex and Nifty trading near their intraday low points, despite positive cues from other Asian markets. Traders got cautious, as economic think tank Global Trade Research Initiative (GTRI) said that regulatory and internal market barriers of China are some of the major impediments which impact India's exports to that country.
Easing inflation data failed to boost sentiments over the street. India’s inflation based on wholesale price index (WPI) eased further to 4.95% (Provisional) for the month of December 2022 as against 5.85% recorded in November 2022 and 8.39% in October 2022. Decline in the rate of inflation in December is primarily contributed by fall in prices of food articles, mineral oils, crude petroleum & natural gas, food products, textiles and chemicals & chemical products.
Nifty futures opened at 18051.10 points against the previous close of 18025.25 and opened at a low of 17886.95 points. Nifty Future closed with an average movement of 210.05 points and a decline of around 83.50 points and 17941.75 points...!!
On the NSE, the midcap 100 index will decline 0.24% and smallcap 100 index is closing decline 0.07%. Speaking of various sectoral indices, the NSE saw gains in only PSU Bank, IT and FMCG stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, January gold opened at Rs.56467, fell from a high of Rs.56562 points to a low of Rs.56330 with a rise of 167 points, a trend of around Rs.56491 and January Silver opened at Rs.69500, fell from a high of Rs.70077 points to a low of Rs.69500, with a rise of 208 points, a trend of around Rs.69635.
Meanwhile, in order to incentivise them to scrap old vehicles and also provide tax concessions to individuals for it, the Union government will give an additional Rs 2,000 crore to states under the Special Assistance for Capital Investment scheme. The government in 2022-23 Budget had introduced the 'Special Assistance to States for Capital Investment' scheme with an outlay of Rs 1.05 lakh crore. Under the scheme, financial assistance is being provided to state governments in the form of 50-year interest free loan for capital projects.
In last month, the finance ministry, in a letter to states, had said that a new sector road transport has been identified for providing incentive tied to prescribed reforms by states under the scheme. Incentive for scrapping of old vehicles has been added to the scheme and an amount of Rs 2,000 crore has been earmarked for scrapping state government vehicles which are older than 15 years, waiver of liabilities on old vehicles and providing tax concessions to individuals for scrapping of old vehicles.
With the inclusion of road transport sector, the total outlay under the scheme has increased to Rs 1.07 lakh crore, from Rs 1.05 lakh crore announced in the Budget. So far, the government has approved Rs 77,110 crore under the scheme, out of which Rs 41,118 crore has been released to states. The scheme aims to encourage states to undertake capital expenditure and has earmarked Rs 80,000 crore for it.
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 17909 – 17880 levels.
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