Dear Trader…
Domestic equities traded in positive territory throughout the day in line with its global peers. Nifty opened gap up and traded in narrow range to finally close with gains of 133 points (0.8%) at 15,832. Broader indices outperformed with Nifty midcap 100 up 1% while Nifty smallcap 100 up 2%. All sectorial indices ended in green with IT & metals being top gainers.
Global markets are positive amid improved risk sentiment as treasury yields remained subdued, oil prices eased out and investors continued to assess the outlook for U.S. rate hikes, and the potential for a recession.
Nifty futures opened at 15899.95 points against the previous close of 15712.30 and opened at a low of 15819.10 points. Nifty Future closed with an average movement of 111.30 points and a rise of around 125.75 points and 15838.05 points...!!
On the NSE, the midcap 100 index will rise 1.00% and smallcap 100 index is closing rise 2.04%. Speaking of various sectoral indices, IT, Metal, Auto, FMCG and Realty stocks saw heavy gains on the NSE, while all other sectoral indices also closed higher.
At the start of intra-day trading, August gold opened at Rs.50730, fell from a high of Rs.50980 points to a low of Rs.50730 with a rise of 187 points, a trend of around Rs.50810 and July Silver opened at Rs.60250, fell from a high of Rs.60729 points to a low of Rs.60107, with a rise of 749 points, a trend of around Rs.60498.
Meanwhile, minutes of the latest Monetary Policy Committee (MPC) meeting has said that all the six members of the MPC, including the RBI Governor, expressed concern over continued high inflation and stressed that the Reserve Bank of India's (RBI) endeavour would be to bring down price rise within the target range. The RBI's rate-setting panel, which met during June 6-8, raised the key interest rate by 50 basis points -- the second hike within five weeks. In early May, the policy repo rate was hiked by 40 basis points.
As per the minutes, RBI Governor Shaktikanta Das said while high inflation continues to be the major concern, revival of economic activity remains steady and is gaining traction. He said the time is appropriate to go for a further increase in the policy rate to effectively deal with inflation and inflation expectations. He said ‘Accordingly, I vote for a 50 bps increase in the repo rate which would be in line with the evolving inflation-growth dynamics and will help in mitigating the second round effects of adverse supply shocks.’ He added that the rate hike will reinforce the RBI's commitment to price stability -- its primary mandate and a pre-requisite for sustainable growth over the medium term.
Further, MPC member and RBI Deputy Governor Michael Debabrata Patra has said that the global inflation crisis is just the face of one of the most severe food and energy crises in recent history that now threatens the most vulnerable across the globe. With inflation majorly being driven by supply constraints amid the ongoing Russia-Ukraine war, he said to gain time for supply to respond, the blunt instrument of monetary policy has to be deployed, and there is no other recourse at this juncture. He also said if inflation is allowed to go out of hand, it could corrode the foundations of the recovery that is gaining traction, and deter investment decisions.
Technically, the important key resistances are placed in Nifty future are at 15888 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 15909 – 16006 levels. Immediate support is placed at 15787 – 15676 levels.
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