Dear
Trader…
Markets
gained over half a percent amid volatility and settled around the day’s high as
well due to some support came as Finance Ministry released the second monthly
installment of revenue deficit grant of Rs 9,871 crore to 17 states. However,
markets trimmed some of their gains as Fitch Solutions states that India is
likely to breach its fiscal deficit target in the financial year to March 2022
mainly due to revenue shortfall.
The
benchmark hovered in a range in the first half however buying in the select
index majors turned the bias in the latter half. Metal, Basic Materials and
Telecom were among the top gainers on the sectoral front.
Nifty
futures opened at 14835.00 points against the previous close of 14769.95 and
opened at a low of 14803.10 points. Nifty Future closed with an average
movement of 104.90 points and a rise of around 90.05 points and 14860.00 points
.. !!!
On the NSE,
the midcap 100 index will decline 0.38% and smallcap 100 index is closing rise
0.70%. Speaking of various sectoral indices, only PSU Bank stocks were seen
selling on the NSE, while all other sectoral indices closed higher.
At the start
of intra-day trading, June gold opened at Rs.47654, fell from a high of
Rs.47770 points to a low of Rs.47572, with a decline of 4 points, a trend of
around Rs.47591 and July Silver opened at Rs.71650, fell from a high of
Rs.72160 points to a low of Rs.71352, with a decline of 258 points, a trend of
around Rs.71423..!!
Finance
Ministry has released the second monthly instalment of revenue deficit grant of
Rs 9,871 crore to 17 states. With the release of the second instalment, a total
amount of Rs 19,742 crore has been released in the first two months of the
current financial year as Post Devolution Revenue Deficit Grant to the states.
The Centre provides the Post Devolution Revenue Deficit Grant to the states
under Article 275 of the Constitution.
The grants
are released as per the recommendations of the Finance Commission in monthly
instalments to meet the gap in revenue accounts of the states post-devolution.
The Department of Expenditure, Ministry of Finance has released the 2nd monthly
instalment of Post Devolution Revenue Deficit (PDRD) Grant of Rs 9,871 crore
for the year 2021-22 to 17 States. The 15th Finance Commission has recommended
Post Devolution Release Deficit grants to 17 states based on the gap between
the assessment of revenue and expenditure of the state.
Markets are
consistently rewarding traders who are focusing more on sector and stock
selection during the prevailing consolidation phase. And, we expect this trend
to continue, at least in the near future. In absence of any major events, COVID-related
updates, earnings and global cues would remain on the participants’ radar.
Technically, the important key resistances are placed at 14808 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 14979 – 15008 levels. Immediate support is placed at 14676 – 14606 levels.
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