Dear Trader…
Indian equity benchmarks managed to end higher in highly volatile trade on Friday led by gains in basic materials, oil and gas and energy stocks. The beginning was upbeat as traders took encouragement with report which claimed that the Emergency Credit Line Guarantee Scheme (ECLGS) launched by the government in 2020 to provide relief to MSMEs impacted by COVID-19 pandemic has saved 13.5 lakh firms from going bankrupt and consequently 1.5 crore jobs.
However, the headline indices were sharply off their respective day's highs and traded with marginal losses in afternoon deals, as caution prevailed among investors globally amid increasing cases of the Omicron variant of COVID-19. Traders took note of report that amid fears that the new coronavirus variant may disrupt normal business activity, industry chamber CII pitched for coordinated actions by the Centre and state governments to minimize the impact of Omicron on the economy.
Nifty futures opened at 17831.10 points against the previous close of 17788.65 and opened at a low of 17736.00 points. Nifty Future closed with an average movement of 213.00 points and a rise of around 66.50 points and 17855.15 points...!!
On the NSE, the midcap 100 index will rise 0.50% and smallcap 100 index is closing rise 0.37%. Speaking of various sectoral indices only Media, Pharma and Auto 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.47370, fell from a high of Rs.47586 points to a low of Rs.47342 with a rise of 24 points, a trend of around Rs.47475 and March Silver opened at Rs.60351, fell from a high of Rs.60523 points to a low of Rs.60012, with a decline of 39 points, a trend of around Rs.60387.
Meanwhile, SBI Research in its latest report has said that emergency Credit Line Guarantee Scheme (ECLGS) launched in 2020 to provide relief to micro, small and medium enterprises (MSMEs) impacted by COVID-19 pandemic, has saved 13.5 lakh firms from going bankrupt and consequently 1.5 crore jobs.
In absolute terms, the report claimed MSME loan accounts worth Rs 1.8 lakh crore were saved from slipping into NPA during the period and this is equivalent to 14 per cent of the outstanding MSME credit being saved from becoming NPA. As per to the report, if these units had turned non-performing, then 1.5 crore workers would have become unemployed. In effect, the ECLGS saved the livelihood for 6 crore families (assuming four family members per worker including herself).
The report further suggested revamping of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) for boosting credit flow to the sector. It noted that interestingly, CGTMSE portfolio have more than 55 per cent recovery rate, low portfolio delinquency, low capital requirement but still an unpopular product, and added that conversely, the non CGTMSE portfolio/ collateralised has a 25 per cent recovery rate, high portfolio delinquency implying much higher loan loss provisions with high capital requirement but still a popular portfolio.
Technically, the important key resistances are placed in Nifty future are at 17888 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 17909 – 17939 levels. Immediate support is placed at 17808 – 17676 levels.
Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in
