Dear Trader…
Indian bourses extended their losses in today session with Sensex and Nifty trading down by 485 and 155 points respectively. Investors were concerned with private report stating that the India's retail inflation likely to accelerate to seven-month high in June on rising food and fuel prices, staying above the Reserve Bank of India's comfort zone for a second straight month. While many of India's states have eased restrictions imposed to contain the coronavirus, supply-side disruptions remain and higher taxes on petroleum products continue to exert upward pressure on inflation.
Some anxiety also came as Fitch Ratings cut India's growth forecast to 10 per cent for the current financial year (FY22), from 12.8 per cent estimated earlier, due to slowing recovery post-second wave of COVID-19. Stocks from Utilities, Power and Consumer Durables counters were trading lower, while Metal, Auto and Energy counters were supporting the markets.
Nifty futures opened at 15852.10 points against the previous close of 15886.40 and opened at a low of 15694.05 points. Nifty Future closed with an average movement of 195.85 points and a decline of around 155.40 points and 15731.00 points .. !!!
On the NSE, the midcap 100 index will decline 0.42% and smallcap 100 index is closing decline 0.04%. Speaking of various sectoral indices, the NSE saw gains in only IT stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, august gold opened at Rs.47759, fell from a high of Rs.48290 points to a low of Rs.47655, with a rise of 310 points, a trend of around Rs.48220 and September Silver opened at Rs.69200, fell from a high of Rs.69696 points to a low of Rs.68730, with a rise of 258 points, a trend of around Rs.69623..!!
Meanwhile, Commerce and Industry Minister Piyush Goyal has called for a services trade agreement among friendly nations of the Indo-Pacific region as it can help liberalise domestic regulations and build capacity in sectors like e-commerce and IT. He also said India's trade with select Indo-Pacific economies increased to $262 billion in 2020 from $33 billion in 2001. However, he said, non-tariff measures act as major trade barriers in the region.
Goyal has stated that trade facilitation can ease the cross-border movement of goods. India's key exports to the region include petroleum, diamonds, medicines and light vessels. Its imports comprise coal, petroleum, palm oil, and telecom equipment. He also said India has taken several measures, resulting in the simplification and rationalisation of many existing rules and regulations.
Further, the minister said the supply chain resilience initiative launched in September 2020 by trade ministers from India, Australia and Japan is a firm step towards building resilient supply chains. He said ‘we hope to be able to invite other countries to join us in this very important initiative. Our economic future in the Indo-Pacific region will largely be defined by our capacity to build on blue economy potential, regional economic integration and improving connectivity to promote regional trade.'
Technically, the important key resistances are placed in Nifty future are at 15777 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 – 15838 levels. Immediate support is placed at 15676 – 15606 levels.
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