Dear Trader…
Extending previous session’s jubilation, Indian equity benchmarks ended the Wednesday’s trade with a gain of over a percent with frontline gauges recapturing their crucial 56,900 (Sensex) and 16,950 (Nifty) levels amid a positive rebound in the global market. Markets started the session on an optimistic note as traders took encouragement with the Finance Ministry’s report stating that the government has initiated various measures to provide relief and financial support to various sectors of the Covid-19 hit economy, at the same time, fiscal consolidation is also under focus.
However, gains remained capped as traders remained watchful with report showing that India's production of crude oil, which is refined to produce petrol and diesel, continued to decline in November, with lower output from state-owned firms leading to an over 2 per cent drop. Crude oil production in November was 2.43 million tonnes, down from 2.48 million tonnes a year back and 2.5 million tonnes in October 2021.
Nifty futures opened at 16877.00 points against the previous close of 16800.95 and opened at a low of 16832.20 points. Nifty Future closed with an average movement of 152.80 points and a rise of around 175.30 points and 16976.25 points...!!
On the NSE, the midcap 100 index will rise 1.55% and smallcap 100 index is closing rise 2.15%. Speaking of various sectoral indices Realty, Pharma, Metal and PVT Bank stocks saw heavy gains on the NSE, while all other sectoral indices also closed higher.
At the start of intra-day trading, February gold opened at Rs.48115, fell from a high of Rs.48136 points to a low of Rs.47975 with a decline of 5 points, a trend of around Rs.48062 and March Silver opened at Rs.61941, fell from a high of Rs.62076 points to a low of Rs.61617, with a rise of 233 points, a trend of around Rs.62038.
Meanwhile, the Finance Ministry in its report said that the government has initiated various measures to provide relief and financial support to various sectors of the Covid-19 hit economy, at the same time, fiscal consolidation is also under focus. It stated that increasing the buoyancy of tax revenue through improved compliance, mobilisation of resources through monetisation of assets, improving efficiency and effectiveness of public expenditure etc.
According to it on half yearly review of the trends in receipts and expenditure in relation to the budget at the end of the first half of the financial year 2021-22, Gross Tax Revenue (GTR) at the end of September 2021 was Rs 11,83,808 crore. This was 53.4 per cent of BE 2021-22 of Rs 22,17,059 crore and reflects an increase of Rs 4,62,912 crore (64.21 per cent) over GTR for Rs 7,20,896 crore in the corresponding period of previous year.
The Budget has projected fiscal deficit of 6.8 per cent of gross domestic product (GDP) for the current fiscal ending in March 2022. Besides, it mentioned Fiscal deficit has been estimated at Rs 15,06,812 crore which is 6.8 per cent of projected GDP (Rs 2,22,87,379 crore). The fiscal deficit of Rs 5,26,851 crore in H1, 2021-22 was about 35 per cent of BE.
Technically, the important key resistances are placed in Nifty future are at 17077 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 17107 – 17170 levels. Immediate support is placed at 16919 – 16808 levels.
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