Indian equity benchmarks ended Friday’s trade on higher note propelled by heavy buying in IT, TECK and Metal stocks amid a rally in global markets after lower-than-expected US inflation data. Key gauges remained strong during the day following a gap-up start as a strong rupee against the US dollar and unabated foreign capital inflows further bolstered sentiment.
Continuous buying in last leg of trade helped markets to end near intraday high levels as optimism remained among traders as the Union Government released two instalments of tax devolution to State Governments amounting to Rs 1,16,665 crore, as against normal monthly devolution of Rs 58,333 crore, in line with the commitment of Government of India to strengthen the hands of States to accelerate their capital and developmental expenditure.
Nifty futures opened at 18332.55 points against the previous close of 18092.65 and opened at a low of 18320.00 points. Nifty Future closed with an average movement of 119.95 points and a rise of around 347.25 points and 18439.90 points…!!
On the NSE, the midcap 100 index will rise 0.07% and smallcap 100 index is closing rise 0.38%. Speaking of various sectoral indices only PSU Bank, Auto and FMCG 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.52050, fell from a high of Rs.52534 points to a low of Rs.52050 with a rise of 165 points, a trend of around Rs.52274 and December Silver opened at Rs.62005, fell from a high of Rs.62766 points to a low of Rs.61160, with a decline of 400 points, a trend of around Rs.61511.
Meanwhile, Chairman of Tea Board Saurav Pahari said that the Tea Board has sought an assistance of Rs 1000 crore for the industry for a period of five years starting 2022-23. He also said that in the budget submitted to the commerce ministry, the focus has been on handholding the small tea growers (STGs) which contribute to 52 per cent of the total production in the country.
Pahari said that the budget is primarily intended to handhold the STGs which contribute to 52 per cent of the country’s production volumes. He said that the Board had also sought subsidy for orthodox tea production which has a good export market. It is good to note that the tea industry on the whole now acknowledges the contribution of the STGs. It should be a collaborative effort between the big tea planters and the STGs for the development of the industry.
He further said tea exports had plummeted but now are picking up. However, domestic production has not picked up as expected. India needs to build the brand image of tea. He also said that technology has to be adopted to optimise the use of labour in the industry, while production costs have to be kept within control to ensure profitability.
Technically, the important key resistances are placed in Nifty future are at 18505 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 18575 – 18606 levels. Immediate support is placed at 18188 – 18088 levels.