Dear Trader…
Indian equity markets are cheering at their all-time highs, snubbing the volatility of global markets. The broader market is also trying to catch up momentum as Nifty midcap and smallcap indices are still well below this all time highs. The beauty of the current rally is that the market is finding support from new sectors every day. In the second half of 2022, there is a clear trend of outperformance of Indian equity markets. This trend is likely to continue despite the fact that we are trading at expensive valuations compared to most of our global peers, as our fundamentals are strong and we have strong support from domestic money. The market will react to Jerome Powell’s speech tomorrow, and auto sales figures will cause stock-specific movements.
The market’s attention will then shift to the Gujarat election and RBI policy. Globally, news flow from China may continue to cause volatility, while the movement of the dollar index, US bond yields, and crude oil prices will be other important factors. The only concern is that the market is overbought, which may lead to some pullback or consolidation at higher levels, but there are no major signs of weakness. Technically, Nifty has immediate targets of 18888 and 19000, while on the downside, 18700 and 18500 will act as strong support levels.
Nifty futures opened at 18736.00 points against the previous close of 18733.60 and opened at a low of 18721.20 points. Nifty Future closed with an average movement of 183.85 points and a rise of around 156.40 points and 18890.00 points…!!
On the NSE, the midcap 100 index will rise 1.14% and smallcap 100 index is closing rise 0.61%. Speaking of various sectoral indices PSU 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.52509, fell from a high of Rs.52710 points to a low of Rs.52421 with a rise of 262 points, a trend of around Rs.52570 and December Silver opened at Rs.61356, fell from a high of Rs.62181 points to a low of Rs.61280, with a rise of 731 points, a trend of around Rs.61882.
“Domestic market continued its quest for gains, boosted by FII inflows. However, markets will be sensitive to the Fed Chair’s remarks later in the day, as investors are expecting a moderation in the pace of rate hikes. An In-line comment will help to sustain the rally while loosening COVID-19 restrictions in China is providing relief to global markets”
The rotational buying across sectors is fuelling the recent surge while the global markets are not offering any clear signal. We’re now eyeing a new milestone of the 19,000 mark in Nifty. Participants should keep a close watch on themes/sectors which are gaining traction and place their bets accordingly.
Technically, the important key resistances are placed in Nifty future are at 18919 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 18969 – 19009 levels. Immediate support is placed at 18808 – 18676 levels.
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