Dear
Trader…
Markets extended fall and lost half a percent amid
volatility. After the gap-down opening,
Nifty future tried to pare losses but continued fall in HDFC Bank and fresh
decline in select heavyweights capped the recovery. Meanwhile, energy, banking
and metal were among the top losers on the sectoral front while pharma and
realty showed some strength. The broader indices also managed to end unchanged
after a volatile swing.
Nifty couldn’t defend the short term moving average i.e. 20
EMA on the expected lines and came closer to the next crucial support of 21,303
level. Indications are now in favor of
some consolidation after the recent fall and any rebound to 21606 – 21707 would
attract fresh shorts. We thus reiterate our view to reduce positions on the
rise and wait for some stability in the trend.
Nifty
futures opened at 21461.94 points against the previous close of 21589.55 and
opened at a low of 21316.80 points. Nifty Future closed with an average
movement of 257.20 points and a decline of around 39.65 points and 21549.90
points…!!
On the NSE,
the midcap 100 index will decline 0.11% and smallcap 100 index is closing decline
0.18%. Speaking of various sectoral indices, the NSE saw gains in only Pharma, PSU
Bank, Realty, Healthcare, Oil and Gas and Auto stocks, while all other sectoral
indices closed lower.
At the start
of intra-day trading, February gold opened at Rs.61539, fell from a high of Rs.61739
points to a low of Rs.61482 with a rise of 221 points, a trend of around Rs.61726
and March Silver opened at Rs.71440, fell from a high of Rs.71608 points to a
low of Rs.71320.00 with a rise of 93 points, a trend of around Rs.71549.
Meanwhile, The
Reserve Bank of India (RBI) sold $1.93 billion, on a net basis, in the spot
foreign exchange market in November, data released on Thursday as part of the
central bank’s monthly bulletin showed. The RBI said it purchased nearly $35
billion and sold $36.9 billion. In October, the central bank had sold a net of
$310 million in the spot market. The rupee depreciated by 0.2% against the
dollar over November, during which it hit a lifetime low of 82.42.
The RBI’s
net outstanding forward sales stood at $11.9 billion as of end-November,
compared with net forward sales of $$14.6 billion at the end of the previous
month, the data showed. The central bank intervenes in the spot and forwards
market to curb exchange rate volatility of the rupee.
Technically, the important key resistances are placed in Nifty future are at 21606 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 21676 – 21707 levels. Immediate support is placed at 21404 – 21373 levels.
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