Dear Trader…
Key benchmark indices extended their winning run into the fourth straight trading session and ended with gains of around a percent on Wednesday backed by solid gains in index heavyweights Mahindra & Mahindra, Bharti Airtel and Reliance Industries. The benchmark indices made a gap-up opening and remained higher throughout the session, as investor sentiments magnified with the World Bank retained its FY22 growth forecast for India at 8.3 per cent but upgraded it to 8.7 per cent for FY23, from 7.5 per cent estimated earlier, citing improving growth prospects, especially a reviving private capex cycle.
The benchmark indices steadily held their strong gains in afternoon trade, as reports suggest the fast-spreading Omicron variant is not virulent and hospitalization cases are very low. Also, Mumbai Mayor Kishori Pednekar stated that the numbers of COVID-19 cases and its fast spreading variant Omicron were slowing coming down in the city. Domestic sentiments were positive, as the Traders overlooked a domestic rating agency ICRA’s report stated that lockdowns to contain the spread of the third COVID wave hurt loan collections and new lending by non-banks, and will in turn impact securitization volumes.
Nifty futures opened at 18083.55 points against the previous close of 18199.00 and opened at a low of 18165.50 points. Nifty Future closed with an average movement of 89.40 points and a rise of around 143.45 points and 18085.05 points...!!
On the NSE, the midcap 100 index will rise 1.25% and smallcap 100 index is closing rise 0.88%. Speaking of various sectoral indices only Pharma 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.47682, fell from a high of Rs.47830 points to a low of Rs.47628 with a rise of 61 points, a trend of around Rs.47750 and March Silver opened at Rs.61050, fell from a high of Rs.61388 points to a low of Rs.61000, with a rise of 100 points, a trend of around Rs.61203.
Meanwhile, the World Bank in its latest Global Economic Prospects report has retained India’s gross domestic product (GDP) growth forecast at 8.3 percent for current fiscal year 2021-22 (FY22) as what was stated in its last projection released in October 2021. Besides, it upgraded the country’s growth forecast for FY23 to 8.7 percent from 7.5 percent estimated earlier. It cited improving growth prospects, especially a reviving private capex cycle for up-gradation.
According to the report, the growth rate of the Indian economy in the current and next fiscal will be stronger as compared to its immediate neighbours. Bangladesh is expected to grow at 6.4 and 6.9 percent in FY22 and FY23, respectively; Nepal at 3.9 percent this fiscal and at 4.7 percent in the next financial year; and Pakistan's economy is predicted to accelerate by 3.4 percent in FY22 and 4 percent in FY23.
The global economic growth will ‘decelerate markedly’ this year as COVID-19 outbreaks and supply chain snarls persist. At the same time, the support programmes unveiled by several governments are about to end. The World Bank forecast global growth to slow down to 4.1 percent this year from an estimated 5.5 percent in 2021, but warned ‘Omicron-related economic disruptions could substantially reduce growth’ to as low as 3.4 percent.
Technically, the important key resistances are placed in Nifty future are at 18272 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 18303 – 18313 levels. Immediate support is placed at 18180 – 18088 levels.
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