Dear Trader…
Markets took a breather after Thursday’s surge and ended almost on a flat note. The Nifty future index opened marginally lower and oscillated in a narrow range till the end to close at 18,645.95 levels. Meanwhile, selective buying in the index majors from across sectors combined with a recovery in the broader pack kept the participants busy.
With the benchmark at a record high, improvement in the broader participation would play a critical role in shaping the market trend. Besides, the performance of the global markets will continue to weigh on the sentiment. We recommend following the trend and focusing on identifying the themes which could unfold ahead along with the present leaders.
Nifty futures opened at 18631.19 points against the previous close of 18626.15 and opened at a low of 18581.15 points. Nifty Future closed with an average movement of 87.05 points and a rise of around 19.80 points and 18645.95 points…!!
On the NSE, the midcap 100 index will rise 0.95% and smallcap 100 index is closing rise 1.12%. Speaking of various sectoral indices only Financial Services, FMCG and Bank stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, December gold opened at Rs.52665, fell from a high of Rs.52750 points to a low of Rs.52425 with a decline of 171 points, a trend of around Rs.52500 and December Silver opened at Rs.62027, fell from a high of Rs.62126 points to a low of Rs.61350, with a decline of 473 points, a trend of around Rs.61520.
Meanwhile, Crisil ratings in its latest report has said that the Indian hotel industry is likely to witness 23 per cent growth in revenue this fiscal (FY23) over the pre-pandemic level, driven by a strong recovery in business travel and continued traction in leisure travel. Higher average room rates (ARRs) and occupancy will help the hotel industry log a strong improvement in profitability to around 34 per cent this fiscal compared to 24 per cent in the pre-pandemic period (fiscal 2020).
According to the report, leisure travel had gained traction post the Delta wave last fiscal, while business travel has started picking up steadily after a much milder Omicron wave in January 2022. This has been fuelling demand in the MICE (meetings, incentives, conventions and events) segment. It believes that improvement in international business travel in the second half of this fiscal will strengthen the industry’s performance.
The report further said occupancy will rise to 73 per cent this fiscal (68 per cent in fiscal 2020), while average room rate (ARR) should increase 8-10 per cent. It said that the gap between demand and supply will aid the improvement in ARR. It noted that developers had held back on capex amid the pandemic-induced uncertainties, and while the sharp rebound in demand may spur an increase in capex, supply will take a while to catch up because of the long gestation period for setting up a greenfield hotel that will favour existing hotels.
Technically, the important key resistances are placed in Nifty future are at 18676 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 18737 – 18808 levels. Immediate support is placed at 18535 – 18474 levels.
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