Dear
Trader…
Markets edged
higher on the weekly expiry day and gained nearly a percent. After the flat start, the Nifty future index
gradually inched higher and settled closer to the day’s high at 18,294.65
levels. Meanwhile, a mixed trend was
witnessed on the sectoral front wherein financials and metal posted decent
gains while realty and FMCG traded subdued.
The broader indices traded in tandem with the benchmark and gained half
a percent each.
The surge in
the index shows more leg to the prevailing up move before it settles for some
consolidation. Apart from consistent
buying in banking and financial majors, the rotational participation from other
sectors is fueling the recovery now. We thus recommend aligning positions
according to the trend, with a focus on stock selection.
Nifty futures
opened at 18119.85 points against the previous close of 18149.95 and opened at
a low of 18113.10 points. Nifty Future closed with an average movement of 202.80
points and a rise of around 144.70 points and 18294.65 points…!!
On the NSE,
the midcap 100 index will rise 0.58% and small cap 100 index is closing rise
0.79%. Speaking of various sectoral indices only FMCG stocks were seen selling
on the NSE, while all other sectoral indices closed higher.
At the start
of intra-day trading, June gold opened at Rs.61200, fell from a high of Rs.61490
points to a low of Rs.61053 with a rise of 320 points, a trend of around Rs.61285
and May Silver opened at Rs.76284, fell from a high of Rs.76633 points to a low
of Rs.75660, with a rise of 730 points, a trend of around Rs.76130.
Meanwhile, International
Monetary Fund said that economies across the Middle East and Central Asia will
likely slow this year as persistently high inflation and rising interest rates
bite into their post-pandemic gains. The IMF’s Regional Economic Outlook blamed
in part rising energy costs, as well as elevated food prices, for the estimated
slower growth. However, losses remained capped as data released by S&P
Global showed that India’s services sector surged in April as the sector’s
Purchasing Managers’ Index (PMI) jumped to 62.0 from 57.8 in March. At 62.0,
the services PMI is the highest in nearly 13 years. It has stayed above the key
level of 50 that separates expansion in activity from a contraction for 21
months in a row.
Some support
came as data released by the Reserve Bank of India (RBI) showed that India’s
services exports shot up by a record 26.6 per cent in 2022-23 (FY23) to $322
billion, thus closing the gap with merchandise exports that grew only 6 per
cent to $447 billion in the same period. Besides, provisional data from the
National Stock Exchange showed foreign institutional investors (FII) bought
shares worth Rs 1,997.35 crore on May 2, 2023.
Technically, the important key resistances are placed in Nifty future are at 18303 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 18373 – 18404 levels. Immediate support is placed at 18180 – 18008 levels.
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