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Indian equity benchmarks closed at record highs on Thursday, powered by a rally in shares of IT companies and public sector banks, with sentiment bolstered by signals the U.S. Federal Reserve may slow the pace of interest rate hikes.


Dear Trader…

The Indian equity market rallied sharply on the expiry day of the November series. Bank nifty and Sensex witnessed a fresh all-time high, while Nifty ended with a record closing high. The drop in the dollar index and US bond yields following some dovish comments in US Fed minutes boosted sentiment across global markets. The sharp drop in crude oil prices, on the other hand, is serving as a cherry on top for Indian equity markets.

Banking stocks were doing well, but today the baton was taken by IT stocks. The rally in the final hour can be attributed to a quick covering move as call writers were trapped. There is a good chance that the Nifty will reach an all-time high tomorrow or within the next few days.

Nifty futures opened at 18310.00 points against the previous close of 18286.75 and opened at a low of 18297.15 points. Nifty Future closed with an average movement of 190.60 points and a rise of around 199.90 points and 18486.65 points…!!

On the NSE, the midcap 100 index will rise 0.44% and smallcap 100 index is closing rise 0.51%. Speaking of various sectoral indices, IT, Financial Services, PSU Bank and FMCG stocks saw heavy gains on the NSE, while all other sectoral indices also closed higher.

At the start of intra-day trading, December gold opened at Rs.52500, fell from a high of Rs.52748 points to a low of Rs.52500 with a rise of 272 points, a trend of around Rs.52723 and December Silver opened at Rs.62099, fell from a high of Rs.62460 points to a low of Rs.62020, with a rise of 567 points, a trend of around Rs.62197.

Markets made a cautious start, as traders were worried after rating agencies Crisil and Icra revised down their India growth projections for the current fiscal and the second quarter mainly due to the ripple effect of slowdown in global growth and mixed crop output. Crisil downgraded the India growth forecast by 30 bps to 7 per cent while Icra pegged the economic expansion at 6.5 per cent for the second quarter of FY2022-23.

India and the European Union (EU) signed an agreement on cooperation in areas such as climate modelling and quantum technologies, building on the Trade and Technology Council launched by the two sides earlier this year. Sentiments remained positive as the Centre said the number of beneficiaries under the PM-KISAN scheme has crossed 10 crore, increasing more than three-fold from 3.16 crore farmers covered under the first instalment period in early 2019.

Traders took a note of report that DEA Secretary Ajay Seth has exhorted multilateral development banks (MDBs) to explore more private sector investment opportunities to facilitate further crowding-in of private financial resources. He highlighted huge opportunities to scale-up investments in India’s key priority areas, including green energy and urban infrastructure. Meanwhile, Finance Minister Nirmala Sitharaman will hold pre-budget consultations with her state counterparts on Friday.

Technically, the important key resistances are placed in Nifty future are at 18707 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 18737 – 18808 levels. Immediate support is placed at 18474 – 18303 levels.

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Nikhil Bhatt is a SEBI registered individual Research Analyst under the SEBI (Research Analysts) Regulations, 2014 is an entrepreneur, global thought leader with a sound understanding trend of BSE, NSE, financial industry segments and investment trends. According to Nikhil Bhatt, “Our mission is to spread financial awareness and improve financial literacy in a concise, simple and easy-to-understand manner. Backed by scientific research, ethical principles and reliable data, our publications benefit and guide the Indian financial / non financial community like merchants, managers, investors, traders and readers. We seek to make investment decisions more objective and mature”.


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