Dear Trader…
Markets started the week on a subdued note and lost nearly half a percent, tracking feeble global cues. After the initial dip, the Nifty future index hovered in a narrow range till the end and finally settled at 17805.95 levels. Meanwhile, a mixed trend on the sectoral front and selective buying on the broader front kept the participants busy.
The recent price action on the benchmark front indicates uncertainty among the participants and that might continue in the near term. Traders should thus maintain their focus more on identifying opportunities in the sectors that are showing resilience. However, it’s easier said than done as we’re seeing restricted participation. Also, managing overnight risk is equally important citing the prevailing volatile scenario.
Nifty futures opened at 17840.00 points against the previous close of 17902.15 and opened at a low of 17744.30 points. Nifty Future closed with an average movement of 123.20 points and a decline of around 96.20 points and 17805.95 points...!!
On the NSE, the midcap 100 index will rise 0.96% and smallcap 100 index is closing rise 0.54%. Speaking of various sectoral indices, the NSE saw gains in only Media, FMCG, Realty, PSU Bank and Phama stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, February gold opened at Rs.56638, fell from a high of Rs.57195 points to a low of Rs.56638 with a rise of 459 points, a trend of around Rs.57044 and March Silver opened at Rs.67776, fell from a high of Rs.68185 points to a low of Rs.67630, with a rise of 222 points, a trend of around Rs.67798.
Central Board of Indirect Taxes and Customs (CBIC) chief Vivek Johri’s statement that monthly GST collection is expected to average around Rs 1.50 lakh crore and it will be the new normal in FY24 in view of concerted efforts to check evasion and bring new businesses within the GST net. Some support also came with Jeremy Zook, Director and Primary Sovereign analyst for India, Fitch Ratings, stating that the governments continued emphasis on ramping up capex spending should provide a fillip to both near- and medium-term growth. He believed India is well-placed to sustain higher rates of growth in the medium-term than many of its peers, with the capex drive helping to underpin this view.
However, markets turned volatile in late morning deals, as traders got anxious with provisional data available on the NSE showing that foreign institutional investors (FII) net-sold shares worth Rs 3,065.35 crore. But, markets gained traction in second half of the session to settle near day's high points, as traders found solace with the US India Strategic and Partnership Forum (USISPF) stating that the innovative, bold and stellar budget presented by Union Finance Minister Nirmala Sitharaman will take India to a stronger growth trajectory.
Some optimism also came with the economic think tank, the Global Trade Research Initiative’s (GTRI) statement that customs duty changes for several products such as precious metals, small cars, bicycles, toys and telecommunication components in the Budget will help promote the Make in India initiative of the government.
Technically, the important key resistances are placed in Nifty future are at 17838 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 17880 – 17909 levels. Immediate support is placed at 17676 – 17606 levels.
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