Dear Trader…
Indian equity benchmarks ended higher for a third straight session on Monday, following positive global cues due to China easing Covid curbs. Some local factors helping the mood include early arrival of monsoon in Kerala raising hopes of a favourable impact on agri crops. After the gap-up start, the benchmarks inched gradually higher, as traders took encouragement with RBI data showing that India’s forex reserves increased by $4.23 billion to $597.509 billion for the week ended May 20 on the back of a high accretion of core currency assets.
Sentiments remained up-beat in late afternoon deals, taking support from minister of state for commerce and industry Anupriya Patel’s statement that India is fast-tracking negotiations for proposed free trade agreements with certain developed countries like the UK as well as with the European Union, and maybe by this year end, the government would be able to give a final shape to few of these pacts.
Nifty futures opened at 16461.05 points against the previous close of 16326.90 and opened at a low of 16461.05 points. Nifty Future closed with an average movement of 212.95 points and a rise of around 324.30 points and 16651.20 points...!!
On the NSE, the midcap 100 index will rise 2.42% and smallcap 100 index is closing rise 3.08%. Speaking of various sectoral indices, Realty, IT, Media and PSU Bank stocks saw heavy gains on the NSE, while all other sectoral indices also closed higher.
At the start of intra-day trading, April gold opened at Rs.50974, fell from a high of Rs.51112 points to a low of Rs.50920 with a rise of 57 points, a trend of around Rs.50970 and March Silver opened at Rs.62277, fell from a high of Rs.62585 points to a low of Rs.62030, with a rise of 3 points, a trend of around Rs.62119.
Meanwhile, amid rising inflationary pressure, Reserve Bank of India (RBI), in its annual report, has pitched for structural reforms for sustained economic growth, and asked banks to remain watchful of possible slippages in restructured loans. It also said the number of Rs 2,000 denomination notes fell to 1.6 per cent of the total currencies in circulation as on March 2022 from 2 per cent in the year-ago period. It stressed that the future path of growth would be conditioned by addressing supply-side bottlenecks, calibrating monetary policy to bring down inflation and boosting capital spending.
The central bank said ‘Undertaking structural reforms to improve India’s medium-term growth potential holds the key to secure sustained, balanced and inclusive growth, especially by helping workers adapt to the after-effects of the pandemic by reskilling and enabling them to adopt new technologies for raising productivity’. It added that the escalation of geopolitical tensions into war from late February 2022 has delivered a brutal blow to the world economy, battered as it has been through 2021 by multiple waves of the pandemic, supply chain and logistics disruptions, elevated inflation and bouts of financial market turbulence, triggered by diverging paths of monetary policy normalisation.
Technically, the important key resistances are placed in Nifty future are at 16770 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 16808 – 16878 levels. Immediate support is placed at 16606 – 16533 levels.
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