Dear Trader…
Indian equity benchmarks ended the session on a negative note for the third consecutive session on Thursday amid downbeat global sentiment and heightened fears in anticipation of interest rate hikes by the US Federal Reserve. Markets started the session in red as traders got anxious with rating agency Icra’s statement that while there is some evidence of the economic recovery becoming broad-based in the third quarter of fiscal 2022, it is yet to attain the durability being sought by the Monetary Policy Committee (MPC) as a precursor to policy transmission. The agency expects the real GDP to expand 6-6.5 per cent year-on-year in the third quarter of FY2022 (+8.4 per cent in Q2 FY2022.
Key indices extended fall in afternoon deals, even as India Ratings & Research expects India’s real gross domestic product to grow 7.6 per cent in fiscal year 2022-23, helped partly by a continued government spending and favourable global trade outlook. However, a rebound in the final hour trimmed some losses as some support came with the Reserve Bank of India’s (RBI) digital payments index (DPI), which was launched in January 2021 to indicate the extent of digitisation of payments across the country, shows that the index for September 2021 stood at 304.06 against 270.59 in March. This indicates the rapid adoption and deepening of digital payments across the country.
Nifty futures opened at 17950.00 points against the previous close of 17974.10 and opened at a low of 17694.40 points. Nifty Future closed with an average movement of 274.30 points and a decline of around 166.10 points and 17808.00 points...!!
On the NSE, the midcap 100 index will decline 0.16% and smallcap 100 index is closing rise 0.05%. Speaking of various sectoral indices, the NSE saw gains in only Metal and Realty stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, February gold opened at Rs.48379, fell from a high of Rs.48431 points to a low of Rs.48310 with a rise of 19 points, a trend of around Rs.48396 and March Silver opened at Rs.64502, fell from a high of Rs.64771 points to a low of Rs.64385, with a rise of 183 points, a trend of around Rs.64588.
Meanwhile, Rating agency ICRA has said while there is some evidence of the economic recovery becoming broad-based in the third quarter of fiscal 2022, it is yet to attain the durability being sought by the Monetary Policy Committee (MPC) as a precursor to policy transmission. The agency expects the real GDP to expand 6-6.5 per cent year-on-year in the third quarter of FY2022 (+8.4 per cent in Q2 FY2022). It also sees the RBI maintaining the status quo in the upcoming monetary policy review to be held in February.
It said economic activity rebounded in December 2021, even as many sectors continued to trail the performance recorded in October 2021. Encouragingly, the quarterly data suggests a modest broad-basing of the recovery in Q3 FY2022, relative to Q2 FY2022, when compared to respective pre-COVID-19 volumes. However, the onset of the third wave of COVID-19 has triggered state-wise restrictions, which have expectedly interrupted the momentum in the ongoing month, reiterating that the recovery is yet to attain durability.
Technically, the important key resistances are placed in Nifty future are at 17888 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 17909 – 17979 levels. Immediate support is placed at 17676 – 17606 levels.
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