Dear
Trader…
Markets traded
volatile for yet another session and shed nearly half a percent. After the flat start, the Nifty future index
traded with a negative tone in the first half however rebound in select index
majors in the latter half trimmed some losses. Consequently, it ended at 17,782.65
levels; down by 0.13%.
Markets have
been facing pressure on every uptick however buying in select index majors is
capping the damage so far. Participants are closely eyeing the outcome of the
RBI meet for cues however indications are pointing toward prevailing choppiness
to continue until Nifty decisively breaks the range of 17606 – 18008 levels. We
thus recommend restricting trades and maintaining positions on both sides.
Nifty futures
opened at 17840.00 points against the previous close of 17805.95 and opened at
a low of 17703.00 points. Nifty Future closed with an average movement of 161.80
points and a decline of around 23.30 points and 17782.65 points…!!
On the NSE,
the midcap 100 index will decline 0.02% and smallcap 100 index is closing decline
0.71%. Speaking of various sectoral indices, the NSE saw gains in only Realty,
Bank, PVT Bank and Financial Services stocks, while all other sectoral indices
closed lower.
At the start
of intra-day trading, February gold opened at Rs.57000, fell from a high of Rs.57248
points to a low of Rs.56950 with a rise of 119 points, a trend of around Rs.57074
and March Silver opened at Rs.67635, fell from a high of Rs.67845 points to a
low of Rs.67185, with a rise of 25 points, a trend of around Rs.67424.
Meanwhile, Markets
made a cautious start and stayed in red throughout the day as traders were
concerned as foreign investors pulled out Rs 28,852 crore from Indian equities
in January, making it the worst outflow in the last seven months, primarily due
to attractiveness of the Chinese markets. Some anxiety also came as the
government hiked windfall profit tax levied on domestically-produced crude oil
as well as on the export of diesel and ATF, in line with firming international
oil prices. The levy on crude oil produced by companies such as Oil and Natural
Gas Corporation (ONGC) has been increased to Rs 5,050 per tonne from Rs 1,900
per tonne.
Key indices
continued to show a sluggish trend in late afternoon session as market
participants avoided taking any long positions ahead of a three-day policy
meeting of the Reserve Bank of India’s (RBI’s) monetary policy committee. The
Indian central bank is likely to raise rates by 25 basis points despite signs
of softening retail inflation. Traders overlooked latest data released by the
central bank showing that the Reserve Bank of India’s foreign exchange reserves
rose $3 billion to $576.76 billion in the week ended January 27. The current
level of reserves is the highest since the week ended July 8, 2022.
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 17878 – 17909 levels. Immediate support is placed at 17676 – 17606 levels.
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