Dear Trader…
Indian equity benchmarks snapped their two-day gaining streak and settled marginally lower on Wednesday, amid volatile trading ahead of the expiration of monthly derivates. After making cautious start, the benchmark indices swung between gains and losses for whole day, in tandem with weak global market cues. Traders remain worried as India reported 6,358 new coronavirus cases on Tuesday, according to the health ministry. The active caseload of the country now stands at 75,456. Omicron cases have risen to 653.
However, losses remain capped as some optimism remained among traders with rating agency ICRA in its latest report stated that India’s real gross domestic product (GDP) is likely to maintain a 9% growth rate in fiscal 2022 and 2023. The Indian economy grew at 8.4% in the second quarter of the current fiscal, as against a growth of 20.1% in the April-June quarter.]
Nifty futures opened at 17238.00 points against the previous close of 17246.75 and opened at a low of 17186.05 points. Nifty Future closed with an average movement of 100.95 points and a decline of around 47.75 points and 17199.00 points...!!
On the NSE, the midcap 100 index will decline 0.13% and smallcap 100 index is closing decline 0.59. Speaking of various sectoral indices, the NSE saw gains in only Pharma and Auto stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, February gold opened at Rs.48002, fell from a high of Rs.48012 points to a low of Rs.47703 with a decline of 299 points, a trend of around Rs.47743 and March Silver opened at Rs.62367, fell from a high of Rs.62650 points to a low of Rs.61910, with a decline of 584 points, a trend of around Rs.61930.
Meanwhile, Reserve Bank of India (RBI) in its report on Trend and Progress of Banking in India 2020-21 has said that non-banking financial companies (NBFCs) are expected to remain buoyant going ahead, with the increased pace of vaccinations and the broadening revival of the economy. It said the COVID-19 pandemic has tested the resilience of NBFCs, but so far, the sector has emerged stronger with reasonable balance sheet growth, increased credit intermediation, higher capital, lower delinquency ratio and enlarged liquidity cushions.
According to the report, the financial system is maturing from a bank-dominated space to a hybrid system, wherein non-bank intermediaries are gaining prominence. The developments in the sector in 2020-21 are a harbinger of even brighter prospects in the years ahead. It said various policies in the aftermath of the pandemic ensured liquidity support, moratorium and asset classification standstill eased financial conditions and gave NBFCs adequate time and wherewithal to weather the shock and leverage on their grass-root level reach to channelise credit to productive sectors and revive growth. Many NBFCs have adopted strong credit risk assessment frameworks to ensure the quality of credit creation.
Technically, the important key resistances are placed in Nifty future are at 17232 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 17272 – 17303 levels. Immediate support is placed at 17077 – 17007 levels.
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