Dear
Trader…
Markets
recovered strongly on Tuesday and gained nearly a percent. Initially, upbeat
global cues triggered a firm start which further strengthened with buying in
select heavyweights as the day progressed. Consequently, Nifty future surpassed
the hurdle at 17900 and finally settled around the day’s high. Meanwhile, a
mixed trend was witnessed on the sectoral front wherein metal, FMCG, IT and
banking posted decent gains while realty, auto and healthcare ended lower.
Indications
are favorable for further recovery and we’re now eyeing 18,108 in Nifty.
However, the move could be gradual citing restricted participation by select
index heavyweights. Traders should align their positions accordingly and prefer
index majors over others.
Nifty futures
opened at 17830.00 points against the previous close of 17801.85 and opened at
a low of 17812.85 points. Nifty Future closed with an average movement of 157.05
points and a rise of around 143.30 points and 17945.45 points…!!
On the NSE,
the midcap 100 index will decline 0.27% and small cap 100 index is closing decline
0.40%. Speaking of various sectoral indices only Realty, Auto, Media 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.56611, fell from a high of Rs.56867
points to a low of Rs.56580 with a rise of 216 points, a trend of around Rs.56713
and March Silver opened at Rs.66415, fell from a high of Rs.66674 points to a
low of Rs.65803, with a decline of 198 points, a trend of around Rs.65946.
Meanwhile, growth
in factory output decelerated to a two-month low of 4.3 per cent in December as
manufacturing dragged the overall growth in the Index of Industrial Production
(IIP) even as mining and electricity production grew at a robust pace. Some
cautiousness also came in as RBI data showed India’s foreign exchange reserves
dropped by $1.494 billion to reach $575.267 billion as of February 3, snapping
a three-week rising trend.
Domestic
sentiments remained pessimistic in afternoon deals, amid a private report
stating that foreign investors continue to desert Indian stock markets as they
pulled out over Rs 9,600 crore this month so far on costlier valuation of
domestic equities compared to other emerging markets. The outflow comes
following a net withdrawal of Rs 28,852 crore by Foreign Portfolio Investors
(FPIs) in January.
However, in
the last hour of trade, indices trimmed some losses. Traders took some support
with the finance ministry’s statement that gross direct tax collections grew 24
per cent to Rs 15.67 trillion so far this fiscal. After adjusting for refunds,
the net direct tax collection stood at Rs 12.98 trillion, a growth of 18.40 per
cent.
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 – 17838 levels.
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