Dear
Trader…
The Nifty future
index closed 0.77% higher at 17,160, while the S&P BSE Sensex rose 0.77% to
58,074.68 in their biggest one-day gains since the collapse of Silicon Valley
Bank on March 10.Nine of the 13 major sectoral indexes advanced with the
high-weightage financials rallying nearly 1.5%. The rise in domestic equities
follows an uptick in global markets as concerns over the banking crisis eased
after UBS’ state-backed takeover of Credit Suisse, but worries of contagion in
global banking remain. So far, five banks globally have succumbed- from Silver
gate to Credit Suisse, more worms to come out.
Information
technology (IT) stocks fell nearly 1% on fears that the banking woes in
developed markets could lead to tighter tech spending. Also on the radar is the
U.S. Federal Reserve’s policy decision on Wednesday. The odds of a
25-basis-points (bps) hike are now 51%, with bets of a status quo at 49%.
Expectations of a hike had eased to 41% on Monday from as high as 80% last
week. The Fed has an unenviable job to control inflation with rate hikes while
also controlling the consequences of its rate hikes.
Nifty futures
opened at 17090.00 points against the previous close of 17028.90 and opened at
a low of 17052.25 points. Nifty Future closed with an average movement of 131.40
points and a rise of around 131.25 points and 17160.15 points…!!
On the NSE,
the midcap 100 index will rise 0.59% and small cap 100 index is closing rise
0.66%. Speaking of various sectoral indices only IT, FMCG, Pharma and Realty stocks
were seen selling on the NSE, while all other sectoral indices closed higher.
At the start
of intra-day trading, April gold opened at Rs.59594, fell from a high of Rs.59705
points to a low of Rs.59092 with a decline of 281 points, a trend of around Rs.59225
and May Silver opened at Rs.69008, fell from a high of Rs.69260 points to a low
of Rs.68551, with a decline of 4 points, a trend of around Rs.68834.
Meanwhile, though
the US government support for Silicon Valley Bank (SVB) and Signature Bank, and
the UBS buying Credit Suisse have calmed the nerves, the global banking crisis
can have widespread impact for quite some time. The US witnessed banking
failures earlier this month, leading to SVB and Signature Bank being taken over
by the Federal Insurance Deposit Council and the SVB’s UK business being
acquired by HSBC.In a deal brokered by European regulators to stem the turmoil
in the global banking system .banking giant UBS is taking over crisis-hit
Credit Suisse.
India is seen
to be relatively sheltered from the shocks of the crisis. It is unlikely to
impact India’s banking system or its broader macroeconomic stability, unless
more banks in the US or Europe fail and the crisis gets pronounced. Yet,
analysts and some economists believe indirect impact of the banking crisis
might ripple through India’s economy and manifest in India’s tech sector,
markets and startups.
Technically, the important key resistances are placed in Nifty future are at 17202 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 17303 – 17373 levels. Immediate support is placed at 17107 – 17007 levels.
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