Dear Trader…
India’s benchmark Sensex eked out meagre gains to notch a fresh closing high on Wednesday, helped by gains in bank and IT stocks and as nerves eased after U.S. President Joe Biden said the blast in Poland was caused by a Ukrainian defence missile, dispelling fears that it originated from Russia.
As the domestic market has started to trade around the all-time high levels it is trending indecisively following the recent geopolitical tensions and weak performance by global counterparts. Although domestic macroeconomic indicators and FII inflows are favourable, given the high valuations, domestic markets can behave cautious in the short to medium-term. Rest of the other EMs look more attractive when the global market is attempting to bounce back after a long period of consolidation
Nifty futures opened at 18462.00 points against the previous close of 18462.05 and opened at a low of 18387.50 points. Nifty Future closed with an average movement of 105.65 points and a decline of around 16.05 points and 18446.00 points…!!
On the NSE, the midcap 100 index will decline 0.65% and smallcap 100 index is closing decline 0.83%. Speaking of various sectoral indices only Bank, Financial Service, IT, PSU Bank, PVT Bank 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.52992, fell from a high of Rs.53200 points to a low of Rs.52942 with a rise of 375 points, a trend of around Rs.53120 and December Silver opened at Rs.61800, fell from a high of Rs.62950 points to a low of Rs.61727, with a rise of 920 points, a trend of around Rs.62510.
Some concern also came as Petroleum and Natural Gas Minister Hardeep Singh Puri said the Centre is ready for bringing petrol and diesel under the GST regime but it is unlikely that the states will agree to such a move. Sentiments remained weak amid a private report stating that Indian businesses are likely to increase their spending on information technology slightly in 2023 amid the looming tensions on inflation and economic slowdown. India’s overall IT spending is projected to grow 2.6 per cent next year down from 22.1 per cent in 2021.
Traders also found support with private report stating that India’s retail inflation to track within the Reserve Bank of India’s target band by March 2023. It expects inflation to moderate in FY24 as the effect of higher commodity prices wears off in YoY terms and supply chains continue to normalize. Further, as it expects a rise in capex in FY24, it expect this higher capacity to help cap further rise in core inflation pressures in FY25. Traders also took note of a World Bank’s report stating that India will need to invest $840 billion over the next 15 years to upgrade its urban infrastructure if it is to effectively meet the needs of its fast-growing population in cities.
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 18373 – 18303 levels.
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