Dear
Trader…
The Indian
equity market has witnessed some strong whipsaw moves at the start of this
eventful week, wherein the benchmark index Nifty50 had a decent start followed
by a gradual correction. However, in the latter half, a strong recovery was
seen from the lows of the 17500-odd zone, which levitated market sentiment and
snapped the losing streak.
The broader
market remained tentative, while the IT space has seen some strong resurgence,
which kept participants engaged for the day. All eyes would be on the Adani
Group developments, followed by the mega event of the “Budget 2023,”
and till we witness some strength in the indices, it is advisable to stay light
and have a stock-centric approach.
Nifty futures
opened at 17639.95 points against the previous close of 17687.15 and opened at
a low of 17522.25 points. Nifty Future closed with an average movement of 306.75
points and a rise of around 54.60 points and 17741.75 points…!!
On the NSE,
the midcap 100 index will decline 0.19% and small cap 100 index is closing decline
0.10%. Speaking of various sectoral indices only FMCG, Media, Metal, Pharma,
Realty and auto stocks were seen selling on the NSE, while all other sectoral
indices closed higher.
At the start
of intra-day trading, February gold opened at Rs.56900, fell from a high of Rs.57149
points to a low of Rs.56740 with a decline of 37 points, a trend of around Rs.56820
and March Silver opened at Rs.68438, fell from a high of Rs.68810 points to a
low of Rs.68360, with a rise of 179 points, a trend of around Rs.68508.
Meanwhile, Foreign
Institutional Investors (FIIs) offloaded shares worth Rs 2,393.94 crore on
Wednesday, according to exchange data. Sentiments were down-beat with a United
Nations’ report stating that global economic growth is projected to slow to
1.9% this year from an estimated 3% in 2022. The report blamed the COVID-19
pandemic, Russia’s war in Ukraine, high inflation and the climate crisis. It
said this would mark one of the lowest growth rates in recent decades.
Investors also
turned cautious ahead of the Union Budget 2023, which will be presented by
Finance Minister Nirmala Sitharaman on February 1. Markets extended fall in
afternoon deals, as traders were anxious with a private report stating that
private equity (PE) and venture capital (VC) investments in Asia-Pacific excluding
Japan continued their downward trajectory when 2022 closed. According to data
from S&P Global Market Intelligence, deals totaled $5.39 billion across 42
announced and completed transactions in the fourth quarter of 2022, compared to
$20.07 billion across 79 transactions in the same period in 2021.
Traders also
took a note of a study by market regulator SEBI showing that nine out of 10
individual traders in the equity F&O segment incurred net losses during
both the years FY 2018-19 and FY 2021-22. There has been a significant increase
of over 500 per cent in the number of individual traders in the equity F&O
segment in FY 2021-22, as compared to FY 2018-19.
Technically, the important key resistances are placed in Nifty future are at 17808 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 17909 – 18008 levels. Immediate support is placed at 17676 – 17606 levels.
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