Dear Trader…
After initial hiccup, markets recovered post some stability seen in Adani group stocks. Nifty future opened positive but traded flat in the initial hours. It however made a comeback in later part of the session to close with gains of 216 points (+1.23%) at 17902 levels. Sectorial it was mixed bag. Buying continued in consumer and IT sector stocks. While beaten down banking sector, especially PSU Bank saw refresh buying after BOB reported healthy Q3FY23 numbers and expectation of SBI to announce good result.
Domestic indices witnessed recovery despite mixed global cues. Pharma counters were under pressure after Divi’s Lab reported poor set of numbers. Banking stocks will react on Monday to SBI results, which would be released on Friday evening. Investors await key monthly US jobs data. Next week market will keep eye on US Fed Chair Powell speech due on Tuesday.
Nifty futures opened at 17758.00 points against the previous close of 17685.25 and opened at a low of 17635.65 points. Nifty Future closed with an average movement of 291.35 points and a rise of around 216.90 points and 17902.15 points...!!
On the NSE, the midcap 100 index will decline 0.18% and small cap 100 index is closing decline 0.35%. Speaking of various sectoral indices only Pharma, Realty, Media and Metal 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.57799, fell from a high of Rs.57900 points to a low of Rs.57500 with a decline of 15 points, a trend of around Rs.57680 and March Silver opened at Rs.70116, fell from a high of Rs.70557 points to a low of Rs.69730, with a decline of 213 points, a trend of around Rs.69991.
Last week, the Adani Group fiasco struck our markets like a comet. The spillover effect of this carnage triggered a massive sell-off in the banking space, which then spread across the broader market. Around mid-week, the finance minister delivered a stellar ‘Budget’ and markets gave a complete thumbs up to this event. We hastened towards 18000 on the same day itself; but once again, the escalating dark clouds with respect to Adani group poured complete water on this optimism.
Our markets took a nosedive to not only pare down gains but also ended well inside the negative terrain. Fortunately, things cooled off a bit towards the fag end of the week, which resulted in a smart recovery to reclaim the 17800 mark on a closing basis. Although, we managed to recover lost ground this week, we are still not completely out of the woods yet. A continuous news-flow with respect to the Adani group is likely to give volatile swings on both sides.
Traders are advised to keep a close tab on all these above-mentioned scenarios and should remain updated on global as well as domestic developments. The banking space needs to be closely watched; because it is likely to act as a catalyst for setting the near-term direction for our market. Apart from this, a lot of thematic moves started playing out well towards the end of the week. One must keep focusing on such potential trading opportunities.
Technically, the important key resistances are placed in Nifty future are at 17939 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 18008 – 18088 levels. Immediate support is placed at 17676 – 17404 levels.
Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in
