Dear
Trader…
This morning
the global set up was slightly pleasant, and in line with this, our markets
started the session on a positive note. The strength continued ahead of the
RBI’s monetary policy, and since the outcome was very much in line with
consensus (rate hike by 25 bps), we witnessed a consolidation thereafter. The
buying resumed towards the latter part of the session to eventually conclude
with over 0.71% gains tad above the 17900 mark.
In the last
couple of sessions, the benchmark index remained sideways, and today, for the
entire session, broad-based buying was clearly visible. This is what we had
alluded in our previous commentary that the consolidation is probably a
breather and market is likely to make an attempt in the upward direction.
However, the banking space remained muted, and barring ICICI Bank, no other
banking counter participated in today’s move. The remaining two sessions of the
week would be quite crucial as it is likely to dictate the near-term direction
for our market.
Nifty futures
opened at 17802.05 points against the previous close of 17782.65 and opened at
a low of 17786.05 points. Nifty Future closed with an average movement of 153.30
points and a rise of around 126.60 points and 17909.25 points…!!
On the NSE,
the midcap 100 index will rise 0.91% and small cap 100 index is closing rise 0.84%.
Speaking of various sectoral indices, Metal, IT and Pharma stocks saw heavy
gains on the NSE, while all other sectoral indices also closed higher.
At the start
of intra-day trading, February gold opened at Rs.57220, fell from a high of Rs.57384
points to a low of Rs.57122 with a rise of 14 points, a trend of around Rs.57271
and March Silver opened at Rs.67677, fell from a high of Rs.67891 points to a
low of Rs.67402, with a rise of 159 points, a trend of around Rs.67688.
Meanwhile, Markets
made a slightly positive start as traders took some support with NITI Aayog CEO
Parameswaran Iyer’s statement that India’s production-linked incentive (PLI)
scheme has attracted investment worth over Rs 45,000 crore and has also created
three lakh jobs. The Indian government launched the PLI scheme in 2020.
Markets fall
in afternoon deals, as sentiments remained down-beat with global rating agency
Fitch Ratings’ report stating that banks will face margin pressure next fiscal
(FY24) as they increase the deposit rates to attract funds to support sustained
high loan growth. It expects the domestic banking sector’s average Net Interest
Margins (NIMs) to slightly contract by about 10 basis points (bps) in FY24 to
3.45 per cent, following a 15 bps increase in FY23 to 3.55 per cent, in a base
case scenario, but remain well above that during FY17-FY22 average of 3.1 per
cent.
But, markets
managed to trim some losses towards the end of the session, taking support from
S&P Global Ratings’ statement that core inflation in India has been
declining sequentially, and an elevated 6.25 per cent policy rate limits the
need for further rate hikes. Some support also came in on report that
India and the European Union (EU) announced the formation of three working
groups under the Trade and Technology Council that was set up to deepen
strategic ties with the trade bloc.
Technically, the important key resistances are placed in Nifty future are at 17979 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 – 18088 levels. Immediate support is placed at 17676 – 17606 levels.
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