Dear
Trader…
Markets
started the week on a subdued note and lost over half a percent, in
continuation of the recent fall. After
the initial uptick, the Nifty future index gradually drifted lower as the day
progressed and settled closer to the day’s low.
The continuous pressure in the banking and financials pack combined with
a downtick in the energy majors kept the tone negative. Meanwhile, the broader
indices traded mixed and ended flat to marginally lower.
The
underperformance of the banking and financial majors is largely weighing on
sentiment, in absence of any major event. And, indications are pointing towards
more pain in banking however resilience in the IT, auto and select FMCG
heavyweights may cap the damage. Besides, the upcoming monthly expiry of the
February month derivatives contract would further add to the choppiness.
Nifty futures
opened at 17965.75 points against the previous close of 17951.00 and opened at
a low of 17835.60 points. Nifty Future closed with an average movement of 179.10
points and a decline of around 88.35 points and 17862.65 points…!!
On the NSE,
the midcap 100 index will rise 0.08% and smallcap 100 index is closing decline 0.34%.
Speaking of various sectoral indices, the NSE saw gains in only IT and Auto stocks,
while all other sectoral indices closed lower.
At the start
of intra-day trading, April gold opened at Rs.56209, fell from a high of Rs.56345
points to a low of Rs.56201 with a rise of 50 points, a trend of around Rs.56307
and March Silver opened at Rs.65933, fell from a high of Rs.65950 points to a
low of Rs.65501, with a decline of 69 points, a trend of around Rs.65562.
Meanwhile, Federal
Reserve might raise interest rates three more times this year, by a quarter of
a percentage point each, after data this week indicated to hot inflation and
labor market resilience. Markets made a pessimistic start mirroring weakness in
global markets amid fears of higher interest rates. Soon, domestic gauges pared
most of their initial losses as traders took support with a private report that
India’s gross domestic product (GDP) is expected to grow at 6.2 per cent in
FY24 as drivers of domestic demand remain intact amid fears of an impending
slowdown. However, the recovery proved short lived and markets once again moved
southward.
In afternoon
deals, Traders shrugged off Economic think tank Global Trade Research
Initiative’s report where it said that India’s merchandise exports have
recorded a healthy growth in both value and volume terms in 2022. The outbound
shipments rose by 14.6 per cent year-on-year to $453.3 billion in 2022. Traders
took note of report that Former Niti Aayog Vice Chairman Rajiv Kumar said the
Budget should have focused more on asset monetisation and privatisation,
besides allocating more funds to the social sector schemes.
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 17939 – 18008 levels. Immediate support is placed at 17808 – 17676 levels.
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