Dear Trader…
The Indian equity market witnessed a volatile session amid the mega event day, wherein strong whipsaw moves were evident in the broader markets. The benchmark index had a positive start, and post the conclusion of the Budget speech, it rallied to almost the 18000 mark. But soon after, the euphoria fizzled out and the index not only pared down the initial gains but slipped to a 3-month low of the 17450 odd zone. However, by the penultimate hour, some buying emerged from the lows and made a modest recovery in Nifty to conclude the day a tad above the 17650 level.
Amidst the volatility, the market breadth favored the bears as most counters took a U-turn in the second half and dampened the overall sentiments. Going forward, the market is likely to remain volatile ahead of the FOMC meet and the aftermaths of the Budget. Meanwhile, traders should keep a close tab on the mentioned levels and avoid aggressive bets till the trend gets clear.
Nifty futures opened at 17925.00 points against the previous close of 17798.65 and opened at a low of 17472.35 points. Nifty Future closed with an average movement of 591.60 points and a decline of around 121.40 points and 17677.25 points...!!
On the NSE, the midcap 100 index will decline 0.94% and smallcap 100 index is closing decline 1.15%. Speaking of various sectoral indices, the NSE saw gains in only FMCG and IT stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, February gold opened at Rs.57150, fell from a high of Rs.58099 points to a low of Rs.57100 with a rise of 608 points, a trend of around Rs.57850 and March Silver opened at Rs.68754, fell from a high of Rs.70152 points to a low of Rs.68613, with a rise of 1080 points, a trend of around Rs.69909.
Meanwhile, India's foreign exchange reserves rose to a near six-month high of $573.7 billion in the week through Jan. 20, the Reserve Bank of India's (RBI) statistical supplement showed on Friday. This is the second consecutive week that the country’s reserves have risen. In the week to Jan. 13, the reserves stood at $572 billion. The RBI has intervened to buy dollars as the Indian rupee has stabilised, according to forex market participants. This, coupled with valuation changes, adds to the central bank's forex reserves.
The rupee appreciated 0.3% against the dollar in the week to Jan. 20, its second consecutive weekly rise, and traded in a range of 81.0675 to 81.8925. Separately, the central bank's forward dollar holdings jumped in November, according to data released earlier this month. The RBI's net forward dollar holdings stood at $8.49 billion as of end-November, compared with $241 million as of end-October.
Technically, the important key resistances are placed in Nifty future are at 17707 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 17787 – 17808 levels. Immediate support is placed at 17474 – 17303 levels.
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