Dear Trader…
Indian equity benchmarks fluctuated between gains and losses throughout the session and ended marginally lower on Thursday, led by losses in banking, healthcare and telecom stocks. Investors also turned cautious weighing on geopolitical tensions between Russia and Ukraine. Indices started session on a fairly positive note, as traders took some support with finance ministry’s statement that with the muted impact of the third wave of the pandemic on economic activity, the Indian economy may undergo an economic reset by end of the year, clocking 9 per cent growth in 2021-22 (FY22) and around 8 per cent in 2022-23 (FY23).
Key gauges one again entered into green terrain in the noon session, taking support from the income tax department’s statement that more than 4.50 crore tax returns have been processed so far, of the total 6.26 crore ITR filed for the financial year 2020-21. Further, more than 5.41 crore income tax returns (ITRs) filed have been verified and 1.58 crore refunds amounting to Rs 31,857 crore for AY 2021-22 (2020-21 fiscal) have been issued. But, markets failed to hold the gains end ended lower, as some pessimism remained among traders with Reserve Bank of India (RBI) article stating that the manufacturing sector will need continued policy support for smoother and faster recovery to attain the long-term trend path.
Nifty futures opened at 17374.90 points against the previous close of 17317.35 and opened at a low of 17217.35 points. Nifty Future closed with an average movement of 219.55 points and a decline of around 50.60 points and 17266.75 points...!!
On the NSE, the midcap 100 index will decline 0.30% and smallcap 100 index is closing decline 1.04%. Speaking of various sectoral indices, the NSE saw gains in only FMCG stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, February gold opened at Rs.49577, fell from a high of Rs.50260 points to a low of Rs.49557 with a rise of 337 points, a trend of around Rs.49955 and March Silver opened at Rs.63082, fell from a high of Rs.64020 points to a low of Rs.62925, with a rise of 176 points, a trend of around Rs.63475.
Meanwhile, Reserve Bank of India (RBI) article 'Impact of COVID-19 on Sentiments of Indian Manufacturers' published in RBI bulletin has said that the manufacturing sector will need continued policy support for smoother and faster recovery to attain the long-term trend path. Although, it said the sector may soon attain its pre-COVID level, the process of attaining the long-term trend levels may take some time. It said that just when the manufacturers' outlook started looking up, the COVID-19-induced lockdown measures slowed down the revival process.
The article further said the pandemic affected the producers' sentiments negatively by bringing down various parameters to historic lows. It said although the major macroeconomic variables are supposed to achieve their pre-COVID trend in near-term with improvement in demand conditions, they are expected to take time to return to their long-term trend path. It further said the accelerated rollout of vaccines, 2022-23 Budget proposals and other reforms are expected to provide a strong impetus for revival of the economy and will facilitate regaining of the growth potential over the medium-term.
Technically, the important key resistances are placed in Nifty future are at 17303 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 17373 – 17404 levels. Immediate support is placed at 17077 – 17007 levels.
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