Dear
Trader…
Extending
previous session’s bullish run, Indian equity benchmarks ended the Wednesday
trade near intraday highs with frontline gauges settling above their crucial
Sensex 49,700 and Nifty 14,800 levels.
Markets started the session on positive note as slightly fall in daily
coronavirus cases kept traders optimistic throughout the day. India reported a
slight dip in the number of fresh Covid infections and fatalities on Wednesday
with 319,435 cases and 2,764 deaths, Worldometer showed.
Traders
remain energized with Union Health Minister Harsh Vardhan’s statement that
India is better prepared mentally and physically this year with more experience
to beat the COVID-19 pandemic as compared to 2020. Adding more optimism, head
of an India-centric American business advocacy group has said that America’s
corporate sector has stepped up its efforts to help India in its battle against
the COVID-19 pandemic and ensure that lives are saved. On the global front, Asian markets were
trading mostly higher as investors watched for news out of a Federal Reserve
meeting.
Nifty
futures opened at 14702.25 points against the previous close of 14644.70 and
opened at a low of 14685.00 points. Nifty Future closed with an average
movement of 205.80 points and a rise of around 201.75 points and 14846.45
points .. !!!
On
the NSE, the midcap 100 index will rise 1.11% and smallcap 100 index is closing
rise 0.64%. As far as various sectoral indices are concerned, only metal,
pharma and realty stocks were seen selling on the NSE, while all other sectoral
indices closed higher.
At
the start of intra-day trading, june gold opened at Rs.47150, fell from a high
of Rs.47273 points to a low of Rs.46800, with a decline of 412 points, a trend
of around Rs.46891 and May Silver opened at Rs.68680, fell from a high of
Rs.68680 points to a low of Rs.67550, with a decline of 1313 points, a trend of
around Rs.67645..!!
Amid
the ‘strong’ vaccine drive, the Asian Development Bank (ADB) in its flagship
Asian Development Outlook (ADO) 2021 has stated that India’s economy is likely
to grow at 11 per cent in the current fiscal year (FY) 2021-2022, which ends on
March 31, 2022. However, it cautioned that the surge in COVID-19 cases may put
the country’s economic recovery at risk. It added that for FY 2022-2023,
India’s GDP is expected to expand at 7 per cent.
Further,
it said the gross domestic product (GDP) of South Asia is expected to rebound
to 9.5 per cent this year, following a contraction of 6 per cent in 2020,
before moderating to 6.6 per cent next year (2022). ADB said the economic
growth in developing Asia is set to rebound to 7.3 per cent this year,
supported by a healthy global recovery and an early progress on COVID-19
vaccines. The projected resurgence follows a 0.2 per cent contraction last
year.
Considering the scenario, we suggest maintaining a positive
yet cautious approach and continuing with the stock-specific trading approach.
Also, keep a close watch on global markets and earnings announcements for cues.
Friends, buy on declines would be the prudent strategy as
possibility of profit booking at higher levels cannot be ruled out which would
offer incremental buying opportunity to ride next leg of up move….
Technically, the important key resistances are placed at 14808 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 14909 – 15008 levels. Immediate support is placed at 14676 – 14636 levels.
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