Dear Trader…
The Indian equity market started the day on a flat note tracking the mixed global cues, wherein the benchmark index Nifty50 witnessed a slender range-bound movement throughout the trading session. The index managed to firmly withhold its crucial support on the weekly expiry showcasing the resilience of the bulls in not giving up easily. Amidst the intense tug of war, Nifty concluded the day with a mere gain of 0.26 percent and settled a tad above 18600 levels.
We allude to our previous commentary of keeping the approach of buying the dip until the sacrosanct support is firmly withheld, which certainly aligns with the current situation. On the technical front, there is no significant change in the chart structure except for the narrowing down of the trading zone. As far as levels are concerned, 18500 is a critical level to watch for on the downside, and till it is safeguarded, there is no sign of worry in the market. On the higher end, a decisive closure above the 18700 zone could only bring back the glee among the market participants.
Nifty futures opened at 18675.00 points against the previous close of 18670.25 and opened at a low of 18637.30 points. Nifty Future closed with an average movement of 103.60 points and a rise of around 54.70 points and 18724.95 points…!!
On the NSE, the midcap 100 index will rise 0.61% and smallcap 100 index is closing rise 0.33%. Speaking of various sectoral indices IT, Pharma And Realty stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, February gold opened at Rs.53999, fell from a high of Rs.54075 points to a low of Rs.53937 with a rise of 40 points, a trend of around Rs.54027 and March Silver opened at Rs.66143, fell from a high of Rs.66549 points to a low of Rs.66012, with a rise of 254 points, a trend of around Rs.66521.
Going forward, we reiterate to keep a close tab on the mentioned levels and keep focusing on thematic movers for better trading opportunities. There have been contributions across the board, the significant benefactors that boosted the bullish sentiments were from the Banking space, especially the PSU bank index which soared to a new 52-week high. Looking at these developments, the undertone is likely to remain upbeat, and any intraday blip is expected to augur well for the bulls.
Despite the global worry about Fed aggressive rate hike next week and recessionary fears, domestic market hailed the landslide victory for BJP in Gujarat. Sentiments which had got dented due to hawkish view of RBI on inflation, got a boost from the election outcome. Sentiments further got supported with fall in oil price to nearly 1-year low to below $80/bbl, strong economic data and favourable government policies.
Technically, the important key resistances are placed in Nifty future are at 18787 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 18838 – 18909 levels. Immediate support is placed at 18606 – 18474 levels.
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