Dear Trader…
Indian equity benchmarks trimmed most of their losses in today session, but continue to close below the neutral lines with Sensex and Nifty trading below at 58,200 and 17,400 respectively. Traders were worried amid fresh scare over the possible severity of Omicron variant, after WHO warned it as a ‘very high’ global risk, with some evidence that it evades vaccine protection. Additional pressure came in as India's annual wholesale price-based inflation accelerated to 14.23% in November; it’s highest in at least 12 years, boosted by bigger hikes in prices of fuel and food.
However, market trimmed some of its losses as traders got some support as NITI Aayog CEO Amitabh Kant stated that the government will continue to push for greater reforms across sectors. Kant stated ‘India is determined to carry out reforms. On the global front, Asian markets were trading mostly lower as investors’ side lined ahead to the key Federal Reserve policy meeting, which is expected to glean insights on its stimulus tapering measures. Back home, losses in realty, auto and consumer durables shares pulled the headline indices lower, though gains in power and utilities shares lent some support.
Nifty futures opened at 17340.00 points against the previous close of 17446.85 and opened at a low of 17424.00 points. Nifty Future closed with an average movement of 194.00 points and a decline of around 94.25 points and 17352.60 points...!!
On the NSE, the midcap 100 index will decline 0.19% and smallcap 100 index is closing rise 0.22. Speaking of various sectoral indices, the NSE saw gains in only Media, Pharma, Metal and IT stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, February gold opened at Rs.48264, fell from a high of Rs.48361 points to a low of Rs.48201.00 with a decline of 56 points, a trend of around Rs.48247 and March Silver opened at Rs.61413, fell from a high of Rs.61604 points to a low of Rs.61220, with a rise of 338 points, a trend of around Rs.61244.
Meanwhile, Union Minister of State for Petroleum and Natural Gas Rameswar Teli has said that the government has agreed to release 5 million barrels of crude oil from its strategic petroleum reserves in consultation with other major global energy consumers including the USA, People's Republic of China, Japan and the Republic of Korea, in order to provide relief to citizens.
The minister has stated the domestic price of crude is linked to international benchmarks of crude price. He said these benchmarks get affected by many factors including supply and demand, futures’ trading, the impact of the covid scenario and geopolitical situation. Linear co-relation between pricing and any one of these factors in isolation is indeterminable.
He further said that the government has been consistently reviewing the high petroleum and diesel prices domestically. With a view to controlling inflationary pressures, government had reduced the 'central excise duty' on petrol and diesel by Rs 5/litre and Rs 10/litre respectively on November 3, 2021. It was followed by a reduction in VAT on fuel by many State Governments.
Technically, the important key resistances are placed in Nifty future are at 17373 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 17404 – 17434 levels. Immediate support is placed at 17272 – 17202 levels.
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