Dear
Trader…
As expected,
Indian shares rebounded on Thursday to close higher, helped by Banking –
Finance, metal and realty stocks, while a second surge in domestic corona virus
cases and fears over its impact on the economy capped gains. The pullback is
also supported by a strong rally happening in global markets.
Some solace
came in as Commerce Secretary Anup Wadhawan said the country’s exports are
reviving and the shipments are expected to be in the solid positive territory
in this financial year. However, upside remain capped as traders were worried
on fears that virus led restrictions will now extend beyond the bigger cities,
to smaller towns and states as cases continue to rise.
The
localised lockdowns and severe restrictions on movements are also going to take
toll on the expected GDP growth for FY22. Also, Investments through
participatory notes (P-notes) in the Indian capital market declined to Rs
89,100 crore at March-end, after hitting 33 months high level in the preceding
month.
Nifty
futures opened at 14200.00 points against the previous close of 14296.20 and
opened at a low of 14155.00 points. Nifty Future closed with an average
movement of 279.00 points and a rise of around 109.10 points and 14405.30
points .. !!!
On the NSE,
the midcap 100 index will rise 0.46% and smallcap 100 index is closing rise
0.85%. Speaking of various sectoral indices, the NSE saw only sell-off in FMCG,
IT and Pharma stocks, while all other sectoral indices closed higher.
At the start
of intra-day trading, june gold opened at Rs.48252, fell from a high of
Rs.48260 points to a low of Rs.47775, with a decline of 418 points, a trend of
around Rs.47810 and May Silver opened at Rs.70399, fell from a high of Rs.70399
points to a low of Rs.69563, with a decline of 623 points, a trend of around
Rs.69715..!!
The
announcement from state governments and rising COVID-19 cases would continue to
remain number one factor for investors to watch out for in the near term.
Further, earnings outcome from Nifty majors would be actively tracked. We maintain
our cautious stance for the markets in the near term as increasing restriction
would adversely impact economic activity.
In the
coming session, volatility is likely to be high on account of the derivative
expiry on next week. However, we expect the index to maintain higher high – low
hence trader needs to be cautious at current level.
We still
maintain our stance that the trend is volatile and pullback rally is in offing
and selling may emerge. Hence trader needs to be cautious at current level.
Technically, the important key resistances are placed at 14404 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 14434 – 14474 levels. Immediate support is placed at 14330 – 14303 levels.
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