Dear
Trader…
Markets extended their winning streak, gaining over a percent
in yet another strong session. The Nifty index maintained a positive tone from
the outset, advancing steadily throughout the day, driven by optimistic
expectations from the Union Budget. All key sectors contributed to the rally,
with energy, FMCG, and realty emerging as top gainers, while themes like
railways and defense also witnessed decent traction.
Nifty has shown a remarkable rebound in recent sessions,
surpassing its short-term resistance at the 20-day exponential moving average
(DEMA). The index is now approaching the next critical hurdle at the 200 DEMA
near 23,650, and a decisive breakout could pave the way for further gains
toward the 23808+ zone. However, with the Union Budget in focus, volatility is
expected to remain elevated. On the downside, Nifty is likely to find support
in the 23373 –23303 range in case of a pullback. Given the prevailing
uncertainty, we recommend maintaining a cautiously optimistic stance and
favoring hedged positions until the event unfolds.
Nifty futures opened at 23490 points against the previous
close of 23418 and opened at a low of 23411 points. Nifty Future closed with an
average movement of 232 points and a rise of around 201 points and 23620 points…!!
On the NSE, the midcap 100 index will rise 1.89 % and smallcap 100 index is closing rise
2.11%. Speaking of various sectoral indices, Consumer
Durables, FMCG, Realty, Oil and Gas and Auto stocks saw heavy gains on the NSE,
while all other sectoral indices also closed higher.
At the start of intra-day trading, February gold opened at
Rs.82039, fell from a high of Rs.82210 points to a low of Rs.81771 with a rise
of 277 points, a trend of around Rs.82000 and March Silver opened at Rs.93800,
fell from a high of Rs.94075 points to a low of Rs.93323 with a rise of 524 points,
a trend of around Rs.93970.
Meanwhile, the
indices are fueled with expectations of a pro-growth budget and prudent fiscal
as indicated in the economic survey. Positive global cues and
better-than-expected results from major companies are also contributed to the
upward trend.
Market expects
reductions in individual tax and job generation to boost consumption. By
cutting fiscal deficit but continuing to boost infrastructure spending, the
government may set the tone for a potential recovery in the consolidating
market.
Technically, the important key resistances are placed in Nifty future are at 23737 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 23808 – 23979 levels. Immediate support is placed at 23373 – 23303 levels.
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