Dear Trader…
Markets traded volatile on the monthly expiry day and ended marginally higher amid mixed signals. After the gap-down start, the first half was dull as the Nifty index hovered in a narrow band however a sharp surge in the index majors in the latter half completely changed the tone. Consequently, it settled around the day’s high to close at 18,191 levels. Meanwhile, the sectoral indices witnessed a mixed trend wherein the metal and banking pack posted decent gains. The broader indices underperformed the benchmark and ended marginally in the green.
Markets may attempt to extend the rebound on the last trading day of the calendar year however mixed global cues could cap the upside. Besides, the existence of a hurdle around 18,350 in Nifty is added negative. We thus reiterate our view to continue with stock-specific trading approach and maintain positions on both sides until we get clarity over the directional move in the index.
Nifty futures opened at 18122.00 points against the previous close of 18122.35 and opened at a low of 17985.00 points. Nifty Future closed with an average movement of 213.00 points and a rise of around 69.65 points and 18192.00 points…!!
On the NSE, the midcap 100 index will rise 0.08% and smallcap 100 index is closing rise 0.21%. Speaking of various sectoral indices only Media and FMCG 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.54720, fell from a high of Rs.54835 points to a low of Rs.54672 with a rise of 45 points, a trend of around Rs.54806 and March Silver opened at Rs.68996, fell from a high of Rs.69548 points to a low of Rs.68718, with a rise of 426 points, a trend of around Rs.69439.
Foreign institutional investors (FIIs) sold shares worth Rs 867.65 crore on December 27, according to the provisional data available on the NSE. Some cautiousness also came in as the latest data on public debt showed that the total liabilities of the government increased to Rs 147.19 lakh crore at September-end from Rs 145.72 lakh crore at the end of June this fiscal year. In percentage terms, it reflects a quarter-on-quarter increase of 1 per cent in second quarter of 2022-23.
Sentiments remained in lackluster mood in late afternoon deals, as India Ratings and Research (Ind-Ra) in its ‘Research and Ratings Compendium’ said that the ratio of Upgrades/Downgrades is likely to moderate, amid higher inflation, slowing exports and an improving but still weak domestic demand. The agency expects the economic growth to slow down to 4.0% – 4.5% in 2HFY23 from 9.7% in 1HFY23.
Further, the report stated that Indian banks’ gross non-performing assets (GNPA) declined to 5.8 per cent in March 2022, but the present macroeconomic environment can impact lenders’ health. It stated the GNPAs, which touched a peak in FY18 following the asset quality review, have been declining sequentially to reach 5 per cent in September 2022.
Technically, the important key resistances are placed in Nifty future are at 18373 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 18404 – 18474 levels. Immediate support is placed at 18188 – 18008 levels.
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