Dear Trader…
The Indian equity market started the day on a promising note, taking cues from the SGX Nifty, but failed to capitalize on the initial gains, and the index plunged to lower levels. The hustle continued for the entire session as we witnessed an intense tug of war between bulls and bears. Ahead of the mega event, the Nifty future index saw a muted close with a mere gain of 0.32 percent and settled the day at 17798 levels.
The market's breadth favored bulls as buying interest emerged in the broader markets. We remain sanguine and expect "Budget 2023" to provide the much-needed impetus for the domestic market. However, such events can be deceptive, and one should therefore avoid becoming complacent ahead of them. Trades should be taken in moderate quantity and with proper risk management. In case of any unfavorable outcome, one should be prepared with an exit strategy as well.
Nifty futures opened at 17785.00 points against the previous close of 17741.75 and opened at a low of 17636.25 points. Nifty Future closed with an average movement of 200.05 points and a rise of around 56.90 points and 17798.65 points...!!
On the NSE, the midcap 100 index will rise 1.63% and small cap 100 index is closing rise 2.91%. Speaking of various sectoral indices only IT 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.56860, fell from a high of Rs.56976 points to a low of Rs.56620 with a decline of 140 points, a trend of around Rs.56642 and March Silver opened at Rs.68604, fell from a high of Rs.68604 points to a low of Rs.67613, with a decline of 858 points, a trend of around Rs.67731.
Meanwhile, Traders took support with latest data showing that the Reserve Bank of India’s (RBI’s) foreign exchange reserves climbed $1.7 billion to $573.73 billion in the week ended January 20. The rise was on account of an increase in the RBI’s foreign currency assets as well as its gold holdings. But, markets failed to hold gains and slipped into red terrain in late morning deals, as market participants remained on sidelines ahead of crucial Union Budget to be presented on February 01 and a slew of central bank policy meetings due this week.
Key gauges extended fall in late afternoon deals, as sentiments remained downbeat amid a private report stating that foreign investors have pulled out a net of over Rs 17,000 crore this month so far due to the attractiveness of the Chinese markets and the cautious stance adopted by them ahead of the Union Budget and US Federal Reserve meeting. The outflow in January came after a net inflow of Rs 11,119 crore in December and Rs 36,239 crore in November. However, markets erased all of their initial losses towards the end and settled higher.
Technically, the important key resistances are placed in Nifty future are at 17909 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 18008 – 18108 levels. Immediate support is placed at 17676 – 17606 levels.
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