Dear Trader…
Indian equity benchmarks ended a choppy session marginally lower on Friday, extending losses to a second straight day. The benchmark indices started on a muted note and remained volatile throughout the day with a bearish ton. Traders were cautious amid a private report stating that the Finance Ministry’s internal projections for what real gross domestic growth in FY23 could be, is lower than the 8-8.5 percent given out in the 2021-22 Economic Survey. Traders took note of a private report that the Monetary Policy Committee (MPC) may go for a hike of up to 0.25 per cent in the reverse repo rate at which the RBI absorbs excess liquidity and leave the repo rate at which it lends, to narrow the policy rate corridor.
However, losses remain capped as traders got some support with CBDT Chairman J B Mohapatra said direct tax collections are expected to breach the revised target of Rs 12.50 lakh crore and set an all-time high and 'historic' record by the end of this financial year in March. Some support also came in as economic think-tank NCAER said the business confidence has remained buoyant in the third quarter of the current financial year, though the pace of rise was moderated by a spurt in the number of COVID-19 cases in December 2021.
Nifty futures opened at 17521.00 points against the previous close of 17547.10 and opened at a low of 17475.00 points. Nifty Future closed with an average movement of 157.00 points and a decline of around 27.10 points and 17520.00 points...!!
On the NSE, the midcap 100 index will decline 0.76% and smallcap 100 index is closing decline 0.92%. Speaking of various sectoral indices, the NSE saw gains in only Metal, FMCG and IT stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, February gold opened at Rs.47976, fell from a high of Rs.48102 points to a low of Rs.47930 with a rise of 178 points, a trend of around Rs.48095 and March Silver opened at Rs.61070, fell from a high of Rs.61250 points to a low of Rs.60830, with a rise of 207 points, a trend of around Rs.60939.
Meanwhile, Parliamentary Standing Committee on Energy in its report has asked the government to explore new and innovative tools to deal with the issue of financial constrains in the renewable energy sector, including setting up of green banks and introduction of renewable finance obligation for financial institutions, among others. It said since Green Banks have emerged as an innovative tool for accelerating clean energy financing globally, the government should explore setting up of a green bank system which can address the persisting finance related challenges being faced by the renewable energy sector in the country.
Keeping in view that the overall debt requirement is large and reducing the cost of financing to the renewable energy developers is important, a parliamentary panel also suggested that the Ministry of New and Renewable Energy (MNRE) may explore the possibility of prescribing Renewable Finance Obligation on the lines of Renewable Purchase Obligation (RPO) for banks and financial institutions. It said the Renewable Finance Obligation will make them invest a specific percentage of their investment in the renewable energy sector.
Technically, the important key resistances are placed in Nifty future are at 17575 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 17606 – 17636 levels. Immediate support is placed at 17474 – 17404 levels.
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