Dear Trader…
Indian equity benchmarks extended gains to a third straight day on Thursday, led by strong performance in Power, Metal and Banking stocks. After making cautious start, benchmark indices rebounded sharply post RBI’s announcements. Reserve Bank of India (RBI) kept the benchmark interest rate unchanged at 4 per cent and decided to continue with its accommodative stance as long as necessary to support growth and keep inflation within the target. Besides, RBI retained its growth projection at 9.2 per cent and inflation at 5.3 per cent for the current financial year.
Markets maintained their upward momentum in the late afternoon session, taking support from Minister of State for Commerce and Industry Anupriya Patel’s statement that India is in discussion with the 10-nation bloc ASEAN for initiating the review of the free-trade agreement in goods between the two regions to seek more market access for domestic products. Some optimism also came with Finance Minister Nirmala Sitharaman’s statement that the projected fiscal deficit of 6.9 per cent for the current financial year is a ‘responsible’ target as the government has tried to ensure a balance between keeping up expenditure and being fiscally prudent. The minister also said the Rs 1 lakh crore loan for states will help in speeding up infrastructure development and capital expenditure.
Nifty futures opened at 17525.00 points against the previous close of 17480.15 and opened at a low of 17440.50 points. Nifty Future closed with an average movement of 209.50 points and a rise of around 117.50 points and 17597.65 points...!!
On the NSE, the midcap 100 index will rise 0.29% and smallcap 100 index is closing rise 0.47%. Speaking of various sectoral indices only PSU Bank 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.48694, fell from a high of Rs.48786 points to a low of Rs.48653 with a rise of 92 points, a trend of around Rs.48752 and March Silver opened at Rs.62602, fell from a high of Rs.62993 points to a low of Rs.62578, with a rise of 292 points, a trend of around Rs.62980.
Meanwhile, Finance Minister Nirmala Sitharaman has said the projected fiscal deficit of 6.9 per cent for the current financial year is a ‘responsible’ target as the government has tried to ensure a balance between keeping up expenditure and being fiscally prudent. The minister also said the Rs 1 lakh crore loan for states will help in speeding up infrastructure development and capital expenditure. In her Budget speech on February 1, Sitharaman had said the revised fiscal deficit in the current financial year is estimated at 6.9 per cent of GDP as against 6.8 per cent of GDP projected in the budget estimates.
Sitharaman said ‘I don’t want anyone to think this (fiscal deficit estimate) is unusual. The pandemic was unusual and therefore 6.9 per cent is a responsible fiscal deficit. That is the kind of fiscal deficit … we have tried to do balancing between keeping up spending and being fiscally prudent’. Regarding giving Rs 1 lakh crore loan to states, she said the amount is being given to states because ‘we want to speed up infrastructure (development) and capital expenditure’. The amount is over and above what the states have been given under their borrowing limits and so it is not going to affect their borrowing limits.
Technically, the important key resistances are placed in Nifty future are at 17676 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 17707 – 17730 levels. Immediate support is placed at 17505 – 17474 levels.
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