Dear
Trader…
Markets edged
higher for the second consecutive session and gained nearly half a percent amid
mixed cues. Weakness in the global markets was weighing on the sentiment in
early trades but resilience in the select heavyweights pushed the index
gradually higher. Consequently, Nifty reclaimed the 18,000 mark, after
struggling for three weeks. On the sectoral front, IT, auto and realty posted
decent gains while defensive viz. pharma and FMCG traded subdued.
We reiterate
our positive view on the market however intermediate consolidation/profit
taking on the global front and restricted participation within the index heavyweights
could keep the momentum in check. We thus recommend staying selective and
preferring exposure to the counters which are leading from the front.
Nifty futures
opened at 17899.80 points against the previous close of 17945.15 and opened at
a low of 17872.35 points. Nifty Future closed with an average movement of 176.65
points and a rise of around 90.00 points and 18035.15 points…!!
On the NSE,
the midcap 100 index will rise 0.60% and small cap 100 index is closing rise
0.30%. Speaking of various sectoral indices only FMCG 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.56666, fell from a high of Rs.56674
points to a low of Rs.56086 with a decline of 570 points, a trend of around Rs.56180
and March Silver opened at Rs.66086, fell from a high of Rs.66086 points to a
low of Rs.65184, with a decline of 884 points, a trend of around Rs.65367.
Meanwhile, Foreign
Portfolio Investors (FPIs) remained net buyers on Monday, purchasing shares
worth Rs 1,322.39 crore. Traders got encouragement after India’s inflation
based on wholesale price index (WPI) eased further to 4.73% for the month of
January 2023 against 4.95% recorded in December 2022. Decline in the rate of
inflation in January is primarily contributed by mineral oils, chemicals &
chemical products, textiles, crude petroleum & natural gas, textiles, and
food products. The wholesale inflation was 5.85% in November 2022.
Sliding crude oil prices in the international markets also bolstered sentiment.
Sentiments
remained up-beat in late afternoon deals, even as the government data showing
that India’s retail inflation breached the RBI’s comfort zone and rose to a
three-month high of 6.52 per cent in January 2023, mainly on account of a spike
in food prices. The inflation rate based on the Consumer Price Index (CPI)
stood at 5.72 per cent in December and 6.01 per cent in January 2022.
Commerce and industry
minister Piyush Goyal has urged member countries of the IPEF group to focus on
early deliverables which can benefit all the nations. Indo-Pacific Economic
Framework (IPEF) was launched by the US and other partner countries of the
Indo-Pacific region on May 23 last year in Tokyo. The 14 partner countries
represent 40 per cent of global GDP and 28 per cent of global goods and
services trade.
Technically, the important key resistances are placed in Nifty future are at 18088 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 18108 – 18180 levels. Immediate support is placed at 17939 – 17808 levels.
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