Dear Trader…
Indian equity benchmarks failed to hold intra-day recovery and closed at day's low on Tuesday tracking deep losses in basic materials, realty and telecom stocks amid widespread selling pressure in global markets. Key gauges made flat-to-positive start, as traders took some support with RBI article stating that India’s overall economic activity remains strong, driven by an upbeat consumer confidence and uptick in bank credit, and expectations that Omicron may turn out to be a flash flood rather than a wave have further brightened the prospects.
Key indices extended fall in late afternoon deals, as the sentiments remained downbeat with Crisil Ratings’ report stated that securitisation volume growth slowed to around 8 percent on year to Rs 29,000 crore in the quarter ended December 31, 2021 (Q3FY22), on higher risk aversion amid the third wave of COVID-19. Traders were also cautious with private report stated that the fast-spreading third wave of COVID-19 has undone the gains achieved due to resumption of business since the end of the lethal second wave last year.
Nifty futures opened at 18354.00 points against the previous close of 18336.60 and opened at a low of 18100.00 points. Nifty Future closed with an average movement of 263.50 points and a decline of around 222.90 points and 18113.70 points...!!
On the NSE, the midcap 100 index will decline 2.06% and smallcap 100 index is closing decline 2.45%. Speaking of various sectoral indices, Realty, Auto, Metal and IT stocks saw heavy selling on the NSE, while all other sectoral indices also closed lower.
At the start of intra-day trading, February gold opened at Rs.47950, fell from a high of Rs.47950 points to a low of Rs.47827 with a decline of 27 points, a trend of around Rs.47890 and March Silver opened at Rs.62000, fell from a high of Rs.62000 points to a low of Rs.61672, with a decline of 48 points, a trend of around Rs.61850.
Meanwhile, Reserve Bank of India’s (RBI) article has said that India's overall economic activity remains strong, driven by an upbeat consumer confidence and uptick in bank credit, and expectations that Omicron may turn out to be a flash flood rather than a wave have further brightened the prospects. It stated, on the vaccination front, India has made rapid strides. On the Omicron variant, the recent data from the UK and South Africa suggest that such infections are 66 to 80 per cent less severe, with a lower need for hospitalization.
It mentioned that there are indications that supply chain disruptions and shipping costs are slowly easing, although the waning of inflation may take longer. This provides a window of opportunity to focus all energies on accelerating and broadening the global recovery.
It also said that data for early January 2022 (up to January 12) indicate growth in digital payments, although the recent surge in infections may pose a concern going forward. Nevertheless, the payment industry is expected to display resilience owing to availability of varied checkout options and rising digital. The central bank said the views expressed in the article are those of the authors and do not necessarily represent the views of the Reserve Bank of India.
Technically, the important key resistances are placed in Nifty future are at 18188 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 18202 – 18232 levels. Immediate support is placed at 18008 – 17970 levels.
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