Dear
Trader…
Indian equities
benchmarks opened gap down in line with global markets post the hawkish
commentary from US Fed Chair Jerome Powell. But value buying at lower levels
led the markets reverse its losses and close in green. This marked as the third
consecutive positive close for Indian markets. Going ahead, market is likely to
continue with its volatility till the next US Fed interest rate decision
outcome (due later this month), where investors are now building in expectation
of 50bps rate hike.
As per the Fed
Chair, the ultimate rate hike is likely to higher than previously anticipated
given the stubborn inflation. Till there is clarity on the interest rate front,
market is likely to be volatile in a broader range.
Nifty futures
opened at 17715.10 points against the previous close of 17774.95 and opened at
a low of 17654.00 points. Nifty Future closed with an average movement of 151.75
points and a rise of around 19.60 points and 17794.55 points…!!
On the NSE,
the midcap 100 index will rise 0.51% and small cap 100 index is closing rise 0.21%.
Speaking of various sectoral indices only Realty, Phama, IT 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.54935, fell from a high of Rs.55034
points to a low of Rs.54887 with a decline of 71 points, a trend of around Rs.54951
and March Silver opened at Rs.61703, fell from a high of Rs.62138 points to a
low of Rs.61586, with a decline of 219 points, a trend of around Rs.61987.
Meanwhile, as
traders took encouragement with Commerce and Industry Minister Piyush Goyal’s
statement that the country’s goods and services exports are expected to cross
$750 billion this fiscal despite the global economic uncertainties. In 2021-22,
the country’s goods and services exports touched an all-time high of $422
billion and $254 billion respectively, taking the total shipments to $676
billion. Some support also came with Union minister of state for micro, small
and medium enterprises (MSMEs) — Bhanu Pratap Singh Verma’s statement that the
central government will increase the number of technology centres to provide
tools, trained personnel and consultancy to MSMEs for stimulating growth of
industries. Verma highlighted the crucial role played by the sector during the
COVID-19 crisis.
However, in
the second half, markets trimmed some of the intraday gains, as traders got
anxious after the Reserve Bank of India said India’s foreign exchange reserves
dropped $325 million to $560.942 billion as of February 24, making it the
fourth consecutive week of decline in the kitty. But, markets managed to end
the session higher, as some optimism remained among traders with a report from
the National Statistical Office (NSO) showing that the annual per capita (net
national income) at current prices is estimated at Rs 1,72,000 in 2022-23, up
from Rs 86,647 in 2014-15, suggesting an increase of about 99 per cent.
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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