Dear
Trader…
The market extended its recovery trend, climbing nearly 1.5%
amid positive cues. A strong start, driven by a rebound in global markets,
gained further traction as renewed buying in select heavyweight stocks
sustained the upbeat sentiment throughout the session. All major sectors
contributed to the rally, with energy, banking, and metals leading the gains.
The index rebound signals a determined effort by bulls to
reclaim lost ground, with a decisive break above the critical resistance at the
200 DEMA i.e. 23,606 in Nifty potentially strengthening their position further.
The next target range stands at 23909–24008. Notably, the banking and financial
sectors have played a key role in the recovery, and a decisive move past the
50404 level in the banking index will be crucial for sustaining the momentum.
Given the prevailing market conditions, we maintain our focus
on selective stock picking, emphasizing relative strength, with a preference
for large-cap and large mid-cap stocks.
Nifty futures opened at 23550 points against the previous close
of 23442 and opened at a low of 23496 points. Nifty Future closed with an
average movement of 300 points and a rise of around 342 points and 23785 points…!!
On the NSE, the midcap 100 index will rise 1.56 % and smallcap 100 index is closing rise
1.09%. Speaking of various sectoral indices, the NSE saw gains in
only FMCG stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, February gold opened at
Rs.83444, fell from a high of Rs.83599 points to a low of Rs.83000 with a decline
of 174 points, a trend of around Rs.83150 and March Silver opened at Rs.94229,
fell from a high of Rs.94436 points to a low of Rs.93884 with a decline of 60 points,
a trend of around Rs.94197.
Meanwhile, there
was strong demand for Banking and Financial Services stocks ahead of the RBI
Monetary Policy meet scheduled from February 5 to 7. Rate-sensitive sectors
like auto and real estate gained 0.7-0.8%, benefiting from expectations of an
interest rate reduction later in the week and increased spending post tax
relief in the budget.
Investors
will watch out for US and India’s Services PMI for January to be released
tomorrow. We expect gradual upmove in domestic equities with focus on global
markets, Q3 corporate earnings and the RBI MPC meet starting tomorrow.
Technically,
the important key resistances are placed in Nifty future are at 23838 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 23909 – 24008 levels. Immediate support is placed at 23676 –
23606 levels.
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