Dear Trader…
Indian equites witnessed a strong recovery after the sharp sell-off last week. Nifty opened positive and gained strength throughout the session to close with gains of 208 points (+1.2%) at 18015 levels. Action was seen in Broader market post its 3 consecutive weeks of decline. Both Nifty Midcap 100 and Smallcap 100 outperformed Nifty with gains of 2.7%/3.8% respectively. E
xcept Pharma, all sectors ended in green. After sharp fall of 3% in Nifty over the last three trading sessions, value based buying emerged at lower levels. In the absence of any major global events due to year-end holidays, we expect market to remain sideways to positive based on news flows. We expect focus on Banks, Auto, capital goods and defense sectors to do well in the near term.
Nifty futures opened at 17890.05 points against the previous close of 17863.90 and opened at a low of 17835.55 points. Nifty Future closed with an average movement of 270.45 points and a rise of around 163.40 points and 18027.30 points…!!
On the NSE, the midcap 100 index will rise 2.72% and smallcap 100 index is closing rise 3.81%. Speaking of various sectoral indices only Pharma 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.54525, fell from a high of Rs.54748 points to a low of Rs.54520 with a rise of 76 points, a trend of around Rs.54650 and March Silver opened at Rs.68201, fell from a high of Rs.69219 points to a low of Rs.68201, with a rise of 82 points, a trend of around Rs.69115.
Traders continued to remain concerned with former Niti Aayog Vice Chairman Arvind Panagariya’s statement that cutting trade with Beijing at this juncture would amount to sacrificing India’s potential economic growth amid demands for snapping trade ties with China for its transgressions on the border. Instead, he suggested that India should try to enter into free trade agreements (FTA) with countries such as the UK and the European Union to expand its trade.
Key indices extended losses to end near day’s low points as sentiments remained negative with RBI Monetary Policy Committee (MPC) member Jayanth R Varma’s statement that India’s economic growth is now ‘extremely fragile’ and needs all the support that it can get, as private consumption and capital investment are yet to pick up. Varma further said out of the four engines of growth for the economy, exports and government spending supported the Indian economy through the pandemic, but other engines need to pick up the baton now.
Traders took note of a private report that amid a slowdown in demand for Indian goods in developed countries, India can focus on 18 products, such as insecticides, construction material, chemicals, and iron and steel, to boost its exports to developing countries where the country meets only 2.5 per cent of the demand at present.
Technically, the important key resistances are placed in Nifty future are at 18080 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 18108 – 18188 levels. Immediate support is placed at 17939 – 17880 levels.
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