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RBI Bulletin: India’s economic activity gaining momentum, but private investment missing

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The central bank noted that the broader measures of liquidity reflect easing of monetary and financial conditions in the system

India's monetary action is acquiring steam as COVID-19 frequency subsides and the progressing immunization rollout discharges repressed hopefulness, the Reserve Bank India (RBI) said in the February 2021 issue of its Monthly Bulletin. 

"All motors of total interest are lighting to fire; just private speculation is long gone and the time is suitable for it to wake up. More extensive proportions of liquidity reflect facilitating of money related and monetary conditions in the framework," the Bulletin said. 

The Indian economy experienced the COVID-19 invasion a year ago. The GDP is assessed to shrink by 8% in FY 21, as per government gauges. Notwithstanding, post this, a sharp recuperation is normal in FY22. 

India's GDP in the second from last quarter of FY21 rose imperceptibly at 0.4 percent, in accordance with assumptions, reaffirming that the economy had figured out how to leave the Coronavirus pandemic-drove droop by 2020-end, as indicated by true information delivered by the National Statistical Office (NSO) on February 26. 

In any case, in FY21, the GDP is currently expected to recoil by a somewhat bigger edge of eight percent, as indicated by the public authority's refreshed authority conjecture. This is because of the more slow than anticipated bounce back in development for key areas like assembling, monetary administrations and land, financial specialists say.There is little uncertainty today that a recuperation dependent on a recovery of utilization is in progress," the RBI Bulletin brought up. 

It said that the time is pertinent for private speculation to wake up. "Monetary arrangement, with the biggest capex financial plan ever, with its accentuation on working together better, has offered to jam it in. Will Indian industry and business get the gauntlet," the Bulletin questioned. 

Strategy predicament 

The RBI announcement said financial arrangement specialists are set between the 'rock' of animating the economy and the 'hard spot' of guaranteeing feasible accounts. 

Moreover, financial specialists experience a comparative situation of clashing pulls – guaranteeing an organized development of the loan cost structure even with still expanded acquiring needs, pitched against the interest to stay accommodative and uphold the recuperation. 

The Monetary Policy Authority (MPC) has cut the key loaning rate, repo, by 250 premise focuses since February 2019 to help development. One bps is 100th of a rate point. 

"While strategy specialists show determination in their responsibility, markets are attacked by vulnerability and irregular movements between chases for returns and trips to wellbeing. A mutual perspective and normal assumptions will probably be the anchor in this choppiness," the RBI Bulletin said. 

Markets need to depend on the history of specialists during the century's most difficult year – of keeping markets and organizations working; of facilitating getting expenses and spreads; of keeping money streaming – truth be told, there is next to no else to hang a cap on. A methodical development of the yield bend serves all, it noted.

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Explained | Will fuel prices dip under GST regime?

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Though the GST was introduced on July 1, 2017, petrol and diesel were kept out of it due to the higher dependence of states.

An Agriculture Infrastructure and Development Cess (AIDC) of Rs 2.5 per litre on petrol and Rs 4 per litre on diesel has been proposed in the budget. (Representative Image)

An Agriculture Infrastructure and Development Cess (AIDC) of Rs 2.5 per liter on petroleum and Rs 4 for each liter on diesel has been proposed in the financial plan.With fuel cost soaring, there is a boundless conviction that the incorporation of petroleum and diesel under the Goods and Services Tax (GST) may carry help to the average person. 

As of now, Finance Minister Nirmala Sitharaman and Petroleum Minister Dharmendra Pradhan have batted for the consideration of fuel under GST and demonstrated that the move may carry some alleviation to the everyday person. As of now, the cost of petroleum and diesel incorporates extract obligation charged by the Center and worth added charge by the states. In spite of the fact that the GST was presented on July 1, 2017, petroleum and diesel were kept out of it because of this higher reliance of states. 

Sitharaman required a joint co-activity between the Center and state governments to cut down fuel costs. On February 23, the cost of petroleum in Delhi was seen at Rs 90.93 a liter and diesel at Rs 81.32 a liter. The Center requires an extract obligation of Rs 32.98 a liter and Rs 31.83 a liter on petroleum and diesel individually. 

Effect of consideration of fuel under GST 

In the event that oil based goods are incorporated under the GST, there will be a uniform cost of fuel the nation over. In any case, oil based goods going under GST not really implies that duties or costs will descend. On the off chance that the GST chamber chooses to pick a lower piece, duties may descend. As of now, India has four essential GST rates - 5 percent, 12 percent, 18 percent and 28 percent.

 

Significant income worker for governments 

The GST chamber is probably going to place petroleum and diesel in a higher chunk or even put a cess on it as it is the significant income worker for the public authority. In light of government information, during the initial a half year of the current monetary year, the petrol area contributed Rs 2,37,338 crore to the public authority exchequer – out of which Rs 1,53,281 crore was the Center's offer and Rs 84,057 was the portion of the states. 

In 2019-20, the absolute commitment from the oil area for the states and the Center was Rs 5,55,370 crore. During the last financial, the area contributed around 18 percent of the income of the Center and 7 percent of the income of the states. According to the Union Budget 2021-22, the Center is required to gather an expected Rs 3.46 lakh crore this financial, from extract obligations on petroleum and diesel as it were. 

Among the states, Rajasthan demands the most elevated expense the nation over keeping VAT on petroleum at 36 percent, trailed by Telangana at 35.2 percent. Different states with more than 30% VAT on petroleum incorporate Karnataka, Kerala, Assam, Andhra Pradesh, Delhi and Madhya Pradesh. On diesel, the most noteworthy VAT rates are charged by states like Odisha, Telangana, Rajasthan and Chattisgarh. Up until now, five states, West Bengal, Rajasthan, Meghalaya, Assam and Nagaland have curtailed government expenditures on fuel this year.

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Share Market Closing Note

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Topic :- Share Market Closing Note

Initially Nifty witnessed volatile session and post 12.00 PM nifty was ranbound. After 5 days of losing sessions today both Sensex and Nifty managed to closed in green zone. Sensex ended at 49751 up by 7.00 points and Nifty closed at 14707 up by 32 points from its previous close.

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Topic :- Time:3.15 PM

Just In:

Heranba Industries IPO subscribed 65%, retail portion fully booked on Day 1.

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Topic :- Time:3.00 PM

Nifty spot close above 14750 level will result in some further upmove in the market in coming sessions and if it closes below above mentioned level then some sluggish movement is likely to be seen. Avoid open positions for tomorrow.

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Topic :- Time:2.30 PM

CRUDEOIL Trading View:

CRUDEOIL is trading at 4547.If it manages to trade and sustain above 4555 level then expect some further upmove and if it breaks and trade below 4530 level then some decline can follow in it.

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Topic :- Time:2.15 PM

Nifty is still in mute state however it will turn volatile. Nifty spot if manages to trade and sustain above 14780 level then expect some upmove and if it breaks and trade below 14720-14700 levels then some decline can be seen in the market.

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Topic :- Time:1.30 PM

COPPER Trading View:

COPPER is trading at 703.If it breaks and trade below 702.40 level then expect some decline in it and if it manages to trade and sustain above 703.80 level then some upmove can be seen in the Copper.

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Topic :- Time:1.15 PM

Hindalco lays roadmap to drive future growth; stock scales fresh 52-week highs

In the much-awaited capital allocation plan revealed by the company, focus remains on organic growth, debt reduction and improving shareholder returns

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Topic :- Time:1.00 PM

Currently nifty is quite range bound. Nifty spot if manages to trade and sustain above 14750 level then expect some further upmove and if it breaks and trade below 14700 level then some good decline can follow in the market.

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Topic :- Time:12.50 PM

Just In:

Bitcoin slumps over 18% from record levels days after Elon Musk tweeted prices seem too high

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Topic :- Time:12.30 PM

CGOLD Trading View:

GOLD is trading at 46870.If it breaks and trade below 46820 level then expect some decline in it and if it manages to trade and sustain above 46920 level then some upmove can follow in the GOLD.

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Topic :- Time:12.00 PM

Nifty losing its early gains. Nifty spot if breaks and trade below 14720 level then expect some further decline in the market however 14700 will act as immediate minor support to watch out for. Nifty spot if manages to trade and sustain above 14760 level then some upmove can follow in the market.

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Topic :- Time:11.30 AM

News Wrap Up:

1. Indices at days high; Sensex zooms 500 pts, Nifty tops 14,800

2. Fullerton India brings on board Standard Chartereds Shantanu Mitra as CEO and MD

3. Petrol, Diesel Prices Touch Record Highs After 2-Day Pause

4. Cairn, govt discuss LTCG tax and Vivad se Vishwas scheme

5. China back as Indias top trade partner, despite atmanirbhar push

6. Base metals stocks shine as supply crunch, EV push lift copper, zinc prices

7. F&O volumes likely to decline 30% on tighter peak margin regulation

8. Info Edge shares zoom 5% after Zomato raises another $250 million

9. Tanla Platforms rallies 40% in 2 weeks; stock hits new lifetime high

10. ONGC rallies 7% on higher oil prices; stock up 29% so far in February

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Topic :- Time:11.00 AM

After positive opening nifty is still trading in green zone. Nifty spot if manages to trade and sustain above 14820 level then expect some further upmove and below 14780 level some decline can be seen in the market.

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Topic :- Stocks under F&O ban on NSE

1. BHEL

2. Canara Bank

3. Vodafone Idea

4. SAIL

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Topic :- Board meetings

Venus Remedies: The board will meet on February 23 to consider and approve the issuance of warrants.

Safari Industries (India): The board will meet on February 23 for general purposes.

Uniply Industries: The board will meet on February 23 to consider and approve quarterly results.

Stocks in the news

Vedanta - GR Arun Kumar resigned as a whole-time director & chief financial officer of the company.

Bharti Airtel - The company will meet global fixed income investors on or after Feb 23, 2021, to take the decision on the issuance of foreign currency bonds/ notes.

APL Apollo - The company allotted commercial paper worth Rs 75 crore to ICICI Prudential Ultra Short Term Fund.

Urja Global - The company approved the allotment of 5 crore partly paid-up rights equity shares at a price of Rs 5 per rights equity share.

Bharat Forge - The company signed an agreement with Paramount Group for the production of protected vehicles in India.

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Topic :- Nifty Opening Note

Indian Stock Market Trading View For 23 Feb,2021:

Nifty to turn volatile as the day progresses. Asian market will set the trend for Indian stock market.

Nifty spot if manages to trade and sustain above 14680 level then expect some further upmove in the market and if it breaks and trade below 14600 level then more fall is likely to be seen in the market. 14600 spot to act as key level.

Please note this is just opening view and should not be considered as the view for the whole day

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Nifty Closing Note

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 Nifty Closing Note

Bloodbath on Dalal Street as Sensex falls 1,939 points, Nifty settles below 14,550:

Indian equities witnessed a sharp selloff in the intraday trade on February 26 which dragged the benchmark Sensex lower by more than 2,148 points and made the Nifty go below 14,500. Banking and financial stocks led the fall as the Nifty Bank, Private Bank, PSU Bank and Financial Services indices all fell up to 5 percent.

At close, Sensex was 1,939 points, or 3.80 percent, down at 49,099.99 while Nifty was at 14,529.15, down 568 points or 3.76 percent.

Mid and small-caps were outperforming their larger peers as the BSE Midcap and Smallcap indices were down by 1.75 percent and 0.74 percent, respectively.

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Topic :- Time:3.00 PM

Nifty spot if manages to trade and close above 14660 level then expect some pull back in coming sessions and if it closes below above mentioned level then some further decline can be seen in the market. Avoid open positions for tomorrow.

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Topic :- Time:2.40 PM

COPPER Trading View:

COPPER is trading at 710.40.If it manages to trade and sustain above 712.50 level then expect some upmove in it and if it breaks and trade below 708.80 level then some decline can be seen in it.

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Topic :- Time:2.20 PM

There is huge volatility in the market. Traders are advised to stay away today. Nifty is likely to show some quick recovery now. Avoid fresh short positions from current levels.

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Topic :- Time:1.30 PM

NICKEL Trading View:

NICKEL is trading at 1370.70.If it holds below 1376 level then expect it to test 1360 level quite soon. Sell on every rise till it holds below 1376 is recommended in it.

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Topic :- Time:1.00 PM

Nifty is highly volatile today. Nifty spot if manages to trade and sustain above 14660 level then expect some further upmove and if it breaks and trade below 14600 level then some decline can be seen. 14550 spot to act as support to watch out for.

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Topic :- Time:12.30 PM

GOLD Trading View:

GOLD is trading at 46088.If it breaks and trade below 46040 level then expect some further decline in it and if it manages to trade and sustain above 46120 level then some upmove can be seen in it.

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Topic :- Time:12.00 PM

Blood bath is going on in the market. Nifty spot if breaks and trade below 14600 level then expect some further decline in the market and if it manages to trade and sustain above 14640 level then some upmove can follow in the nifty.

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Topic :- Time:11.30 AM

News Wrap Up:

1. Sensex tumbles 1,500 pts, Nifty holds 14,650; India VIX up 20%

2. Adani Group likely to bid through MIAL in next round of privatisation

3. RailTel Corporation debuts at 16% premium over issue price of Rs 94

4. Oil prices retreat from 1-year high alongside global market selloff

5. India looks set to beat recession even as new coronavirus cases loom

6. US biggest crypto bourse Coinbase files IPO papers for Nasdaq listing

7. NSE trading outage: Calls for more stock exchanges likely to grow

8. DHFL hits 5% upper circuit as RBI okays Piramal Groups resolution proposal

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Topic :- Nifty Opening Note

Indian Stock Market Trading View For 26 Feb,2021:

Nifty to turn volatile as the day progresses.

Global cues to act as trend decider.

Nifty spot if manages to trade and sustain above 15120 level then expect some further upmove in the market and if it breaks and trade below 15060 levels then some decline can be seen in the market. Please note this is just opening view and should not be considered as the view for the whole day.

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Eight core industries' output up 0.1% in January

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The core sectors had expanded by 2.2 percent in January 2020, according to the provisional data released by the Commerce and Industry Ministry on Friday.

Representative image

the yield of eight center framework areas developed possibly by 0.1 percent in January, primarily because of development in the creation of manure, steel and power. 

The center areas had extended by 2.2 percent in January 2020, as per the temporary information delivered by the Commerce and Industry Ministry on Friday. 

Coal, unrefined petroleum, flammable gas, treatment facility items, and concrete recorded negative development in January. 

In any case, the yield of manure, steel and power in January developed by 2.7 percent, 2.6 percent and 5.1 percent, individually. 

During April-January 2020-21, the areas' yield declined by 8.8 percent against a development pace of 0.8 percent in a similar time of the earlier year. 

The eight center ventures comprise 40.27 percent of the Index of Industrial Production.

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Share Market Closing Note

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Benchmark indices ended higher on February 25 with Nifty ending the February series near 15,100 level supported by the metal and energy stocks.

At close, the Sensex was up 257.62 points or 0.51% at 51,039.31, and the Nifty was up 115.40 points or 0.77% at 15,097.40. About 1755 shares have advanced, 1149 shares declined, and 169 shares are unchanged.

Coal India, UPL, Adani Ports, Hindalco Industries and BPCL were among major gainers on the Nifty, while losers were ICICI Bank, Nestle, L&T, Divis Labs and Titan.

Except FMCG, other sectoral indices are trading in the green with metal index rose 4 percent and energy index added 3 percent. BSE Midcap and Smallcap indices up 1 percent each.

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Topic :- Time:2.30 PM

SILVER Trading View:

SILVER is trading at 69775.If it manages to trade and sustain above 69850 level then expect some further upmove in the market and if it breaks and trade below 69480 level then some decline an follow in this bullion.

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Topic :- Time:2.20 PM

Just In:

After Rs 12,720-crore public issues so far in 2021, these 16 IPOs likely in March.

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Topic :- Time:2.00 PM

Nifty spot is trading at 15135.Reliance is pushing the market up. Nifty spot if manages to trade and sustain above 15150-15160 levels then expect some further gains in the market and if it breaks and trade below 15120-15100 levels then some decline can follow in the Nifty.

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Topic :- Time:1.30 PM

CRUDEOIL Trading View:

CRUDEOIL is trading at 4624.If it manages to trade and sustain above 4635 level then expect some quick upmove in it and if it breaks and trade below 4610 level then some decline can follow in Crudeoil.


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Topic :- Time:1.10 PM


Nifty spot is trading at 15138.If it manages to trade and sustain above 15150 level then expect some further upmove in the market and if it breaks and trade below 15100 level then some decline can follow in the market. As nifty is trading in range now so traders are advised to wait and watch.

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Topic :- Time:12.30 PM


COPPER Trading View:

COPPER is trading at 730.30. If it breaks and trade below 729.50 level then some decline can be seen in it and if it manages to trade and sustain above 731.10 level then some upmove can follow in it.

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Topic :- Time:12.00 PM


Nifty is range bound. Nifty spot if breaks and trade below 15080 level then expect some further decline in the market and if it manages to trade and sustain above 15120 level then some upmove can follow in the market.

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Topic :- Time:11.30 AM

News Wrap Up:

1. Indices hold gain, Sensex surges 450 pts; metals outperform

2. Sebi, Finmin seek detailed report from NSE as trading halts due to glitch

3. Plan to monetise 100 public sector assets, drawing Rs 2.5 trillion: PM

4. Max Financial surges 10% as Axis entities get nod for stake buy in Max Life

6. IIFL Securities up 40% in 2 days on winning bid to acquire Karvys accounts

7. Govt plans to privatise PSUs in all sectors barring 4 strategic ones: PM

8. Aditya Birla Fashion steps up presence in ethnic wear after Sabyasachi deal

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Topic :- Time:11.00 AM

Nifty at new high. Taking positions right now is little risky as nifty is consolidating now. Nifty spot if manages to trade and sustain above 15150 level then expect some further upmove and if it breaks and trade below 15100 level then some decline can be seen in the market.

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Topic :- Nifty Opening Note

Indian Stock Market Trading View For 25 Feb,2021:

Nifty to trade sideways. Mid cap stocks are likely to remain in action today.

Nifty spot if manages to trade and sustain above 15020 level then expect some further upmove in the market and if it breaks and trade below 14940 levels then some decline can be seen in the market. Please note this is just opening view and should not be considered as the view for the whole day.


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Nifty Opening Note

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Indian Stock Market Trading View For 25 Feb,2021:

Nifty to trade sideways. Mid cap stocks are likely to remain in action today.

Nifty spot if manages to trade and sustain above 15020 level then expect some further upmove in the market and if it breaks and trade below 14940 levels then some decline can be seen in the market. Please note this is just opening view and should not be considered as the view for the whole day.

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India expected to harvest record wheat, rice crops this year

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Rice output is estimated to rise by 1.2% to 120.32 million tonnes. India is the world’s biggest rice exporter and second biggest producer.

Wheat yield in India, the world's second greatest maker, is required to go up by 1.3% in the harvest year to June 2021, the Agriculture and Farmers Welfare Ministry said in its subsequent harvest conjecture for 2020/21. Rice yield is assessed to ascend by 1.2% to 120.32 million tons. India is the world's greatest rice exporter and second greatest maker. The Agriculture and Farmers Welfare Ministry estimate the current year's complete grains yield at a record 303.34 million tons against 297.5 million tons created in the earlier year. 

Yield of rapeseed, the fundamental winter oilseed with the most elevated oil content, is normal at 10.4 million tons, higher than earlier year's creation of 9.1 million tons. Creation of chickpeas, an assortment of heartbeats, is probably going to be 11.62 million tons against 11.08 million tons collected in the earlier year. 

Any expansion in rapeseed and chickpea creation cuts imports of costly vegetable oils and heartbeats - the items that are for the most part hard to find in India, the world's greatest shipper of both cooking oils and protein-rich heartbeats. 

Likewise, a line of guard rice and wheat harvests - because of high-yielding seed assortments, expanding ranch automation and great climate conditions - have knock up nearby supplies. 

Overflow full silos have barely any additional room to oblige new season reaps that will begin streaming in from one month from now, possibly presenting food stocks to downpours and rodents. 

Notwithstanding guard collects, the public authority of Prime Minister Narendra Modi is wrestling with discontent in the open country, with a huge number of ranchers fighting around three new farming laws presented in September.

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Fuel prices: Petrol, diesel prices remain unchanged in Delhi, Mumbai

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Fuel prices have crossed the Rs 100-mark in towns such as Rajasthan’s Sri Ganganagar where petrol was priced at Rs 101.59 per litre. The cost of petrol in Anuppur, Madhya Pradesh stood at Rs 101.34 per litre.

Representative image: ReutersFuel costs stayed unaltered on February 24, a day in the wake of contacting new highs. The costs of petroleum and diesel in New Delhi remained at Rs 90.93 per liter and Rs 81.32 per liter, individually, as per the Indian Oil Corporation (IOC). Both these costs had been climbed by 35 paise each on February 23. In Mumbai, the cost of petroleum stayed unaltered at Rs 97.34 per liter. The expense of diesel remained at Rs 88.44 per liter. 

In the interim, costs of petroleum and diesel in Chennai remained at Rs 92.90 and Rs 86.31 per liter, individually. While the three metropolitan urban areas keep on enduring the worst part of rising worldwide unrefined petroleum costs, Kolkata considered a to be in fuel costs as the survey bound province of West Bengal cut the state esteem added charge (VAT) by Re 1 on February 20. The cost of petroleum in Kolkata was steady at Rs 91.12 per liter on February 23 and 24. 

Costs have crossed the Rs 100-mark in towns, for example, Rajasthan's Sri Ganganagar where petroleum was evaluated at Rs 101.59 per liter. The expense of petroleum in Anuppur, Madhya Pradesh remained at Rs 101.34 per liter. 

"Because of an increment in costs of unrefined petroleum in global business sectors, customer cost (for petroleum and diesel) has risen," Union Petroleum Minister Dharmendra Pradhan had said before. "This will mollify step by step. Worldwide inventory was decreased because of COVID thusly influencing creation also." 

Pradhan added that he is reliably mentioning the Goods and Services Tax (GST) Council to incorporate oil based commodities under its domain as it might profit shoppers. "In any case, it is their call to take," he added. 

Oil costs fell in early exchange on February 24 after industry information showed that US unrefined inventories had out of the blue risen a week ago as a profound freeze in the southern states controlled interest from treatment facilities that had to close, Reuters revealed.

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Nifty Opening Note

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Nifty Opening Note

Indian Stock Market Trading View For 23 Feb,2021:

Nifty to turn volatile as the day progresses. Asian market will set the trend for Indian stock market.

Nifty spot if manages to trade and sustain above 14680 level then expect some further upmove in the market and if it breaks and trade below 14600 level then more fall is likely to be seen in the market. 14600 spot to act as key level.

Please note this is just opening view and should not be considered as the view for the whole day

Topic :- Stocks under F&O ban on NSE

1. BHEL

2. Canara Bank

3. Vodafone Idea

4. SAIL

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Topic :- Board meetings

Venus Remedies: The board will meet on February 23 to consider and approve the issuance of warrants.

Safari Industries (India): The board will meet on February 23 for general purposes.

Uni ply Industries: The board will meet on February 23 to consider and approve quarterly results.

Stocks in the news Vedanta - GR Arun Kumar resigned as a whole-time director & chief financial officer of the company.

Bharti Airtel - The company will meet global fixed income investors on or after Feb 23, 2021, to take the decision on the issuance of foreign currency bonds/ notes.

APL Apollo - The company allotted commercial paper worth Rs 75 crore to ICICI Prudential Ultra Short Term Fund.

Urja Global - The company approved the allotment of 5 crore partly paid-up rights equity shares at a price of Rs 5 per rights equity share.

Bharat Forge - The company signed an agreement with Paramount Group for the production of protected vehicles in India.

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