Dear Trader…
Bulls made a strong comeback on Dalal Street as Indian equity markets snapped the two-day losing streak and ended higher with gains of over three percent on Tuesday, led by buying across the sectors amid easing Ukraine Russia-tensions. Report stated that some Russian troops in military districts adjacent to Ukraine are returning to their bases after completing drills, a move that could de-escalate frictions between Moscow and the West.
But, key gauges regained traction in the afternoon session, taking support from report that in an effort to tame food inflation, the government has reduced import duty on lentils to nil for Australia and Canada origins and cut it to 22%, from 30%, for those originating in the US. Buying further crept in with a report stated that India and the UAE are likely to sign a free trade agreement (FTA) on February 18, under which both the countries could give duty-free access to a number of products from different sectors.
Nifty futures opened at 16894.00 points against the previous close of 16837.85 and opened at a low of 16837.00 points. Nifty Future closed with an average movement of 545.90 points and a rise of around 527.15 points and 17365.00 points...!!
On the NSE, the midcap 100 index will rise 2.81% and smallcap 100 index is closing rise 2.51%. Speaking of various sectoral indices, Auto, PSU Bank, Media, PVT Bank and Finance Service 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.50151, fell from a high of Rs.50325 points to a low of Rs.49230 with a decline of 544 points, a trend of around Rs.49372 and March Silver opened at Rs.64462, fell from a high of Rs.64600 points to a low of Rs.62600, with a decline of 1460 points, a trend of around Rs.62773.
Meanwhile, domestic rating agency ICRA in its latest report has said that the real estate asset under management (AUM) of non-banks (non-banking financial companies and housing finance companies), which registered a de-growth of 10 percent in 2021, is likely to contract further by 5-10 percent in 2022 and stabilize in the next year. It noted that the real estate AUM of non-banks contracted by 17.64 percent to Rs 2.8 lakh crore as of March 2021 from Rs 3.4 lakh crore as of March 2019.
According to the report, the outlook for real estate-oriented non-banks remains negative due to the asset quality pressures over the near to medium term and the muted growth expectation. It noted that non-banks witnessed a significant slowdown in growth since H2 FY2019, following the liquidity crisis, and consequently moderated their disbursements. It said the performance of non-banks in recent years has been marred by several challenges as entities have grappled with fund-raising challenges and asset quality issues. The impact was more pronounced on wholesale financiers with sizeable real estate exposures compared to their retail counterparts owing to a prolonged period of risk aversion by investors and other stakeholders.
Technically, the important key resistances are placed in Nifty future are at 17404 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 17474 – 17606 levels. Immediate support is placed at 17303 – 17232 levels.
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