Dear Trader…
Recouping half of their yesterday’s losses, Indian equity benchmarks ended the Friday’s trade with a gain of around two and a half percentage points, as traders wend for bargain hunting as U.S. President Joe Biden hit back at Russia with harsh sanctions after it attacked Ukraine. Markets started the day with a gap up opening and traded with traction throughout the day amid buying across the sectors, finishing near intraday high levels. Sentiments remained up-beat as traders took support with report that the heightened geopolitical tensions and their possible impact on global growth have led investors to believe that US Federal Reserve will ton down its aggressive interest rate hike pitch going ahead.
Sentiments also got support with report that Moody’s Investors Service upgraded its financial year 2022-2023 (FY23) growth forecast for the Indian economy to 8.4 per cent from the earlier estimated 7.9 per cent as the country moves to normalcy, post the removal Covid-19 restrictions. Meanwhile, Fitch Ratings maintained its earlier projection of 10.3 percent growth in FY23 compared to 8.4 percent estimated for FY22. Traders shrugged off report that India has received total foreign direct investment (FDI) of $60.3 billion during April to December period of 2021-22 which is 10.6 per cent lower compared to the $67.5 billion of FDI received in the same period of 2020-21.
Nifty futures opened at 16449.85 points against the previous close of 16272.70 and opened at a low of 16449.85 points. Nifty Future closed with an average movement of 313.90 points and a rise of around 394.30 points and 16667.00 points...!!
On the NSE, the midcap 100 index will rise 4.18% and smallcap 100 index is closing rise 4.84%. Speaking of various sectoral indices, Metal, Realty, Media and PSU Bank 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.51180, fell from a high of Rs.51180 points to a low of Rs.50442 with a decline of 830 points, a trend of around Rs.50713 and March Silver opened at Rs.65501, fell from a high of Rs.65501 points to a low of Rs.64422, with a decline of 1265 points, a trend of around Rs.64766.
Meanwhile, Crisil Ratings has said that two-wheeler sales volume is likely to dip by 8-10 per cent this fiscal year due to factors like sluggish rural demand, low festive-season sales, higher prices, and deferred purchases as consumer’s eye electric vehicles. The decline in sales volume in the current financial year is expected on an already-low base after two consecutive years of decline -- at 13 per cent in fiscal 2021 and 18 per cent in fiscal 2020.
It highlighted that this is the first time in over a decade, when two-wheeler sales are declining for three successive fiscal years. It also said segment-wise, motorcycle volume, which accounts for two-thirds of the overall two-wheeler volumes, will see a drop of about 8-9 per cent this fiscal year.
It said ‘the second, third covid waves and delayed harvest impacted rural demand for two-wheelers this fiscal. Besides, higher vehicle and fuel prices also affected rural demand this fiscal, unlike last fiscal, when rural India was less impacted by the first covid wave’.
Technically, the important key resistances are placed in Nifty future are at 16770 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 16808 – 17007 levels. Immediate support is placed at 16575 – 16474 levels.
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