Dear Trader…
Markets traded dull on the weekly expiry day and ended marginally lower. Weak global cues were weighing on the sentiment from the beginning however continued buying in select heavyweights from banking, energy and capital goods space capped the decline. Meanwhile, the broader indices remained muted and ended flat to marginally in the red.
Though the market tone has turned positive, the participation is limited to a handful of index majors across sectors. Besides, the lack of traction on the broader front further restricts traders' options. Traders have no option but to align their positions accordingly and focus on index majors, which are seeing consistent buying interest.
Nifty futures opened at 18151.00 points against the previous close of 18199.15 and opened at a low of 18081.00 points. Nifty Future closed with an average movement of 96.75 points and a decline of around 86.00 points and 18113.15 points...!!
On the NSE, the midcap 100 index will decline 0.11% and smallcap 100 index is closing decline 0.49%. Speaking of various sectoral indices, the NSE saw gains in only PSU Bank and IT stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, January gold opened at Rs.56305, fell from a high of Rs.56485 points to a low of Rs.56245 with a rise of 81 points, a trend of around Rs.56367 and January Silver opened at Rs.68015, fell from a high of Rs.68221 points to a low of Rs.67726, with a decline of 299 points, a trend of around Rs.67928.
After making a cautious start, key gauges gained traction as foreign institutional investors turned net buyers of domestic shares, breaking their longest selling streak in six months. FIIs snapped a 17-day sales run, purchasing Rs 211 crore worth of equity shares on a net basis on January 17. Traders took a note of Former RBI governor Raghuram Rajan’s statement that it is too premature to think that India will replace China when it comes to influencing global economic growth.
However, the situation may change going forward as India is already the world's fifth largest economy, it is growing and has the potential to keep expanding. Key gauges added more gains in late morning deals, as sentiments got boost with a private report stating that the government is likely to increase the allocation for the ongoing Production-Linked Incentive (PLI) schemes by as much as 20-30 per cent in the next Budget to spur domestic manufacturing and boost exports.
Traders remained optimistic with IMF Deputy Managing Director Gita Gopinath’s statement that there's a lot of positive sentiment towards India. She highlighted areas that need more reforms to attract more manufacturing FDI. Additional support also came with the Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Anurag Jain’s statement that several other steps are underway on further improving ease of doing business in India, including on the labour laws front.
Technically, the important key resistances are placed in Nifty future are at 18202 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 18232 – 18303 levels. Immediate support is placed at 18088 – 18008 levels.
Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in
