Dear Trader…
Breaking 5-day losing streak, Indian equity benchmarks staged a smart recovery from opening lows and closed at day's high on Tuesday, led by strong buying interest in PSU, telecom and utilities stocks. The benchmark indices had opened with a massive downside gap, as traders remained cautious after ICRA projects fiscal deficit at a higher Rs 17.9 trillion, driven by the two major outlays intended to bolster confidence amongst households, namely free food grains under the PMGKAY scheme and an enhanced outgo for MGNREGA.
However, equity markets reversed losses during the second half of the trading session, taking support from former Niti Aayog Vice Chairman Arvind Panagariya’s statement that the Indian economy has recovered 'handsomely' from the pandemic-induced disruptions, while expressing hope that the recovery will be sustained and the growth rate of 7 to 8 per cent will be restored.
Traders also found some solace with the commerce ministry’s statement that exports of engineering goods rose 54 per cent to $81.8 billion during April-December 2021-22 as compared to the same period of the previous year. In the corresponding nine-month period of 2020-21, exports stood at $52.9 billion. The sector accounted for over 27 per cent in India’s total exports basket during the period.
Nifty futures opened at 17000.00 points against the previous close of 17151.65 and opened at a low of 16851.15 points. Nifty Future closed with an average movement of 457.85 points and a rise of around 111.40 points and 17263.05 points...!!
On the NSE, the midcap 100 index will rise 1.00% and smallcap 100 index is closing rise 0.90%. Speaking of various sectoral indices only IT stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, February gold opened at Rs.48608, fell from a high of Rs.48697 points to a low of Rs.48540 with a rise of 47 points, a trend of around Rs.48611 and March Silver opened at Rs.63986, fell from a high of Rs.64118 points to a low of Rs.63710, with a decline of 209 points, a trend of around Rs.63749.
Meanwhile, the Commerce Ministry said exports of engineering goods rose 54 per cent to $81.8 billion during April-December 2021-22 as compared to $52.9 billion in the corresponding nine-month period of 2020-21. The sector accounted for over 27 per cent in India’s total exports basket during the period. In entire 2020-21, exports from the sector was $76.62 billion.
It said ‘with the sector already logging $81.8 billion in the first three quarters of 2021-22, the sector is set to scale further record highs despite the impact of the COVID-19 pandemic in January, 2020’. India’s top five export destinations for engineering goods include the US, China, the UAE, Italy and Germany. The ministry added that the zero duty Export Promotion Capital Goods (EPCG) scheme has helped in pushing up the exports.
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 17202 – 17170 levels.
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