Dear Trader…
Indian equity benchmarks witnessed yet another range bound trading session and ended the December series on a flat note on Thursday, as investors remained cautious amid surging Omicron cases. The headline indices opened on a quite note but soon slightly inched up in early morning trade. Traders took some support with private report stated that employment opportunities in the e-commerce and allied industries witnessed a 28 per cent surge in 2021, and recruitment activities in this segment will gain further momentum driven by economic recovery and aggressive vaccination drive.
However, key gauges failed to hold positive momentum and ended flat, as investors remained anxious as authorities in various parts of India said the third wave of infections has begun. Virus cases more than doubled in Delhi and Mumbai in a single day, forcing the governments to enforce more restrictions.
Nifty futures opened at 17189.90 points against the previous close of 17215.90 and opened at a low of 17151.60 points. Nifty Future closed with an average movement of 107.30 points and a decline of around 8.70 points and 17207.20 points...!!
On the NSE, the midcap 100 index will decline 0.37% and smallcap 100 index is closing rise 0.24. Speaking of various sectoral indices, the NSE saw gains in only IT, Pharma, FMCG, PVT Bank and Bank stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, February gold opened at Rs.47800, fell from a high of Rs.47800 points to a low of Rs.47610 with a decline of 178 points, a trend of around Rs.47661 and March Silver opened at Rs.61850, fell from a high of Rs.61850 points to a low of Rs.61223, with a decline of 270 points, a trend of around Rs.61568.
Meanwhile, the Reserve Bank of India (RBI) in its second Financial Stability Report (FSR) has stated that the Omicron variant of coronavirus remains the major challenge along with rising inflation pressures, though the economy has steadily gained momentum and remained resilient since the second quarter of the current fiscal. RBI Governor Shaktikanta Das noted that after the destructive second wave in April-May 2021, the growth outlook has progressively improved, though there are headwinds from global developments and more recently from the Omicron virus.
He added that a stronger and sustainable recovery hinges on the revival of private investment and shoring up private consumption, which unfortunately still remain below their pre-pandemic levels. Admitting that inflation remains a concern as it is by the build-up of cost-push pressures, Das has called for stronger supply-side measures to contain food and energy prices. Noting that the financial institutions have remained resilient amidst the pandemic and stability prevails in the financial markets cushioned by policy and regulatory support, the governor is confident that the strong balance sheets of banks with higher capital and liquidity buffers will help mitigate future shocks.
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 17330 – 17373 levels. Immediate support is placed at 17170 – 17077 levels.
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