Dear
Trader…
Markets
reversed Wednesday’s gain and lost over half a percent, tracking feeble global
cues. The tone was negative from the
beginning citing pressure in the IT and banking majors, which further
deteriorated with a decline in select index majors like Reliance, Maruti and
ITC as the session progressed. Meanwhile, stability on the broader front capped
the damage to some extent.
Global factors
are largely dictating the trend and we feel a further decline in the US markets
may fade away the hopes of sustained recovery. Considering the scenario, it is
prudent to stay light and prefer stocks that are showing relatively higher
strength. On the index front, the 17272-17505 zone would continue to act as
strong support
Nifty futures
opened at 17495.00 points against the previous close of 17532.70
and opened at a low of 17380.00 points. Nifty Future closed with an average
movement of 138.00 points and a decline of around 133.30 points and 17399.40
points…!!
On the NSE,
the midcap 100 index will decline 0.32% and smallcap 100 index is closing decline
0.17%. Speaking of various sectoral indices, the NSE saw gains in only, Realty stocks,
while all other sectoral indices closed lower.
At the start
of intra-day trading, April gold opened at Rs.55777, fell from a high of Rs.55925
points to a low of Rs.55734 with a rise of 20 points, a trend of around Rs.55850
and March Silver opened at Rs.63589, fell from a high of Rs.63801 points to a
low of Rs.63193, with a decline of 480 points, a trend of around Rs.63455.
Meanwhile, Moody’s
Investors Service has said that the banking sector outlook remains stable and
is supported by economic growth and improved financials. It said ‘while we
expect the country’s real GDP growth to moderate in the fiscal year ending
March 2024 (fiscal 2024), India’s underlying growth potential is fundamentally
strong, which will support banks’ credit growth and asset quality.’
However, it
said loans to small and medium-size enterprises (SMEs) continue to pose risks
to banks’ asset quality because this segment is the most vulnerable to rises in
interest rates. Stating that asset quality of banks will be stable, it said
non-performing loan (NPL) ratios will decline modestly because of recoveries
and write-offs of legacy problem loans.
The US-based
rating agency also said banks’ profitability will stabilise after improving in
the past few years as the boost from declines in loan-loss provisions wanes. It
noted that banks’ capital, funding and liquidity will be stable and supportive
of credit growth. It also said the Indian economy will continue to grow
strongly, despite external challenges, while maintaining a stable outlook for
India’s banking system.
Technically, the important key resistances are placed in Nifty future are at 17404 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 17474 – 17505 levels. Immediate support is placed at 17303 – 17232 levels.
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