Dear
Trader…
Markets traded
volatile and ended marginally in the green amid mixed cues. Initially, weak
global cues were weighing on sentiment however buying in select index majors
helped the Nifty to pare losses and end around the day’s high. Meanwhile, mixed trend on the sectoral front
kept the traders busy wherein IT and financials ended higher and metal, realty
and auto edged lower. The broader indices traded in sync with the benchmark and
ended flat.
The bulls are
trying hard to surpass the hurdle at 18000 in Nifty but mixed trend among the
index majors delaying the breakout. Besides, intermediate pause or profit
taking on the global front is further adding to their worries every now and
then. Meanwhile, participants should restrict their focus on the select heavyweights
and midcap counters which are attracting consistent buying on dips.
Nifty futures
opened at 17900.05 points against the previous close of 17909.25 and opened at
a low of 17720.90 points. Nifty Future closed with an average movement of 154.05
points and a rise of around 36.60 points and 17945.85 points…!!
On the NSE,
the midcap 100 index will rise 0.04% and small cap 100 index is closing decline
0.04%. Speaking of various sectoral indices, the NSE saw gains in IT, Media, Financial
Services, PVT Bank and Bank stocks, while all other sectoral indices closed
lower.
At the start
of intra-day trading, February gold opened at Rs.57238, fell from a high of Rs.57350
points to a low of Rs.57164 with a rise of 81 points, a trend of around Rs.57296
and March Silver opened at Rs.67619, fell from a high of Rs.67891 points to a
low of Rs.67475, with a rise of 73 points, a trend of around Rs.67706.
Meanwhile, Reserve
Bank of India’s Monetary Policy Committee (MPC) decided to increase the repo
rate by 25 basis points to 6.5%. The central bank pegged the GDP growth for
FY24 at 6.4 per cent, and lowered the inflation forecast to 5.3 per cent. For
FY23, the inflation estimate has been lowered to 6.5 per cent versus 6.7 per
cent earlier. Some support also came as Niti Aayog member Arvind Virmani,
appreciating Finance Minister Nirmala Sitharaman for continuing fiscal
consolidation in the Budget for 2023-24, said it would help in reducing the
cost of capital for Indian companies. He also said the large increase in
capital expenditures by 33 per cent to Rs 10 lakh crore for infrastructure
development will accelerate India’s economic growth.
Sentiments
remained up-beat in late afternoon deals, taking support from RBI Deputy
Governor MK Jain’s statement that domestic banks’ exposure to the Adani Group
is ‘not very significant’, and the system is strong and large enough to not get
impacted by a single case.
Traders took a
note of Reserve Bank Governor Shaktikanta’s statement that the Current Account
Deficit (CAD), a key indicator of the external sector, is expected to moderate
in second half of 2022-23 (H2FY23) from 3.3 per cent of GDP in April-September
mainly due to moderation in imports. He noted that CAD had widened to 3.3 per
cent of GDP in first half of 2022-23 from 0.2 per cent in the comparable period
of 2021-22 on the back of a sharp increase in the merchandise trade deficit.
Meanwhile, provisional data available on the NSE showed that foreign
institutional investors (FII) sold shares worth Rs 2,559.96 crore on February 7.
Technically, the important key resistances are placed in Nifty future are at 18008 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 18088 – 18108 levels. Immediate support is placed at 17880 – 17808 levels.
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