Dear Trader…
Indian debt traders have dismissed government officials' concerns about bonds being mispriced, saying they reflected fundamentals but the central bank was behind the curve, and urged steps to fight inflation at Thursday's policy meeting. While high global crude prices, tightening in other markets and potential rate increases by the U.S. Fed weigh on sentiment, investors turned more bearish on Indian bonds after the government unveiled a record market borrowing plan last week.
The domestic market joined the global rally with all major sectors barring PSU Banks trading with gains. US stocks rallied yesterday shrugging off concerns over rising crude oil and rate hike worries ahead of the release of US inflation data The dollar touched a one-month high versus the yen on Wednesday, boosted by a climb in Treasury yields to multi-year peaks overnight as traders wait on U.S. inflation data this week for clues on the pace of Federal Reserve policy tightening.
Nifty futures opened at 17351.40 points against the previous close of 17273.00 and opened at a low of 17330.30 points. Nifty Future closed with an average movement of 159.70 points and a rise of around 214.00 points and 17487.00 points...!!
On the NSE, the midcap 100 index will rise 1.14% and small cap 100 index is closing rise 0.41%. Speaking of various sectoral indices only PSU bank and Oil & Gas stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, April gold opened at Rs.48420, fell from a high of Rs.48535 points to a low of Rs.48403 with a decline of 18 points, a trend of around Rs.48447 and March Silver opened at Rs.62506, fell from a high of Rs.62744 points to a low of Rs.62420, with a decline of 96 points, a trend of around Rs.62463.
The euro continued to retreat from near a three-month high to Japan's currency after European Central Bank President Christine Laggard earlier this week tapped down expectations of aggressive interest rate hikes.
A more hawkish tone from both the ECB and the Fed last week caught markets off guard and sent yields soaring on euro zone and U.S. debt in anticipation rates could rise faster and higher than previously expected.
Indian Rupee would remain stable to strong given what is going on the developed world. If we continue to retain the path of 8-9 per cent real GDP, it would translate into 8 per cent dollar GDP growth. If we extrapolate that we should be at the $5 trillion by 2025-26 or 2026-27’.
Technically, the important key resistances are placed in Nifty future are at 17505 -17533 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 17575 – 17606 levels. Immediate support is placed at 17434 – 17373 levels.
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