Dear
Trader…
Benchmark indices Sensex and Nifty jumped more than 2% on
account of positive global market cues after US President Trump announced a
temporary tariff relief on phones, computers and popular consumer electronics.
He also hinted at possible exemptions on tariffs for imported vehicles and auto
parts. Market optimism was further driven by a sharp drop in the U.S. Dollar
Index, which has fallen to a 3-year low below 100 mark. Nifty future ended
higher by 423 points at 23340 with strong buying in several large-cap stocks.
Nifty Auto soared 3.3% as shares of automobile manufacturers,
auto component and tyre companies gained significantly after US signalled
potential tariff exemption for the automotive sector. EMS stocks surged, buoyed
by the exemption of consumer electronics from US tariffs. Defence shares were
in momentum, driven by rise in domestic orders and global military spending.
The IMD has predicted above-normal rainfall for India this monsoon, with
cumulative rainfall estimated at 105% of the long-period average of 87 cm. This
is expected to benefit fertilizer, auto (two-wheeler) and rural consumption
stocks.
Nifty futures opened at 23295 points against the previous
close of 22917 and opened at a low of 23252 points. Nifty Future closed with an
average movement of 147 points and a rise of around 423 points and 23340 points…!!
On the NSE, the midcap 100 index will rise 2.92% and smallcap 100 index is closing rise
3.08%. Speaking of various sectoral indices, Realty,
Auto, Metal, Media, Private Bank and Pharma stocks saw heavy gains on the NSE,
while all other sectoral indices also closed higher.
At the start of intra-day trading, June gold opened at Rs.93496,
fell from a high of Rs.93496 points to a low of Rs.93160 with a rise of 86 points,
a trend of around Rs.93338 and May Silver opened at Rs.94816, fell from a high
of Rs.95098 points to a low of Rs.94500 with a rise of 164 points, a trend of around Rs.95034.
Meanwhile, India’s
Wholesale Inflation (WPI) for March fell to four-month low of 2.05% against
2.38% in February. Investors will be closely tracking the retail inflation
(CPI) data to be released post-market today. Further, focus will be on the key
Q4 earnings announcements including those from ICICI Lombard, ICICI Prudential
today and Wipro, Angel One tomorrow.
We expect
positive momentum to continue in the market, on hopes of global trade
settlements and softening in US reciprocal tariffs. Meanwhile stock/sector
specific action could be seen on the back of quarterly results and insights
from management commentary.
Technically, the important key resistances are placed in Nifty future are at 23404 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 23474 – 23505 levels. Immediate support is placed at 23088 – 23008 levels.
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