Dear Trader…
Indian shares kicked off July trading on a weak note on Thursday, hurt by losses in information technology stocks and after data showed the country's factory activity shrunk for the first time in eleven months. Traders were worried as India's manufacturing sector activities contracted for the first time in 11 months in June as rise in coronavirus cases and strict containment measures adversely impacted demand as well as resulted in job losses. The seasonally-adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) declined to 48.1 in June from 50.8 in May.
Some anxiety also came as India's external debt surged by $11.5 billion year-on-year to $570 billion as of March-end 2021, according to the Reserve Bank of India data. The external debt to GDP ratio rose to 21.1 per cent as of March-end 2021 from 20.6 per cent a year ago. However, markets pared some of their losses as the country’s foreign exchange reserves in nominal terms, including the valuation effects, increased by $99.2 billion during the financial year 2020-21, compared to $64.9 billion in the preceding year, RBI data showed.
Nifty futures opened at 15765.10 points against the previous close of 15752.15 and opened at a low of 15696.00 points. Nifty Future closed with an average movement of 79.05 points and a decline of around 25.15 points and 15727.00 points .. !!!
On the NSE, the midcap 100 index will decline 0.33% and smallcap 100 index is closing rise 0.66%. Speaking of various sectoral indices, the NSE saw gains in Pharma, Auto, FMCG and PSU Bank stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, august gold opened at Rs.46930, fell from a high of Rs.47116 points to a low of Rs.46903, with a rise of 232 points, a trend of around Rs.47071 and July Silver opened at Rs.68633, fell from a high of Rs.68799 points to a low of Rs.68633, with a rise of 664 points, a trend of around Rs.68799..!!
Meanwhile, the growth of eight core infrastructure industries grew by 16.8 percent in May 2021 as compared to same month last year, mainly due to a low base effect and uptick in production of natural gas, refinery products, steel, cement and electricity. The eight infrastructure sectors had contracted by 21.4 percent in May 2020 due to the lockdown restrictions imposed to control the spread of the COVID-19 infections. In March this year, these key sectors had recorded a growth of 11.4 percent, and 60.9 percent in April. The Eight Core Industries - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).
Technically, the important key resistances are placed in Nifty future are at 15770 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 15808 – 15888 levels. Immediate support is placed at 15676 – 15630 levels.
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