Dear
Trader…
Markets reversed Monday’s decline and gained nearly a
percent, in continuation to the prevailing consolidation range. After the flat start, the Nifty gradually
inched higher as the day progressed and finally settled closer to the day’s
high. Most sectors traded in sync with
the move wherein IT, metal and auto were among the top performers while banking
and FMCG remained subdued. The buoyancy
returned to the broader indices after a breather and both midcap and smallcap
gained in the range of 0.8%-1.2%.
All key sectors, barring banking, are attracting buying on a
rotational basis and that is helping the index to maintain a positive tone amid
consolidation. The recent price action indicates the prevailing tone to
continue and traders should maintain their focus on stock selection. We
reiterate our preference for metal, IT, auto and pharma for long trades and
suggest staying selective in the others.
Nifty futures opened at 21836.60 points against the previous
close of 21803.45 and opened at a low of 21790.05 points. Nifty Future closed
with an average movement of 224.95 points and a rise of around 197.35 points
and 22000.80 points…!!
On the NSE,
the midcap 100 index will rise 1.19% and small cap 100 index is closing rise 0.79%.
Speaking
of various sectoral indices, the NSE saw gains in only Private Bank, PSU Bank, Bank
and FMCG stocks, while all other sectoral indices closed lower.
At the start
of intra-day trading, March gold opened at Rs.62261, fell from a high of Rs.62400
points to a low of Rs.62220 with a rise of 19 points, a trend of around Rs.62335
and March Silver opened at Rs.70451, fell from a high of Rs.70703 points to a
low of Rs.70318 with a decline of 136 points, a trend of around Rs.70344.
Meanwhile, The
FIIs as per Tuesday’s data were net buyers in both equity and debt segments,
according to data released by the NSDL. In equity segment, the gross buying was
of Rs 14560.84 crore against gross selling of Rs 13797.96 crore. Thus, FIIs
stood as net buyers of Rs 762.88 crore in equities.
In the debt
segment, the gross purchase was of Rs 2679.87 crore with gross sales of Rs
1809.79 crore. Thus, FIIs stood as net buyers of Rs 870.08 crore in debt. In
the hybrid segment, the gross buying was of Rs 10.42 crore against gross
selling of Rs 8.83 crore. Thus, FIIs stood as net buyers of Rs 1.59 crore in
hybrid segment.
Technically, the important key resistances are placed in Nifty future are at 22101 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 22202 – 22303 levels. Immediate support is placed at 21880 – 21808 levels.
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