Dear Trader…
Indian equity benchmarks closed higher on Wednesday, led by financial and banking stocks, while State Bank of India surged to an all-time high after the country's largest lender by assets reported a record quarterly profit. Sentiment improved because the virus seems to be under control in most states. Additional support also came with ICRA’s statement that IT services companies are expected to see growth in revenue, driven by robust demand for digital technologies resulting in higher awards of contracts.
Traders seem to have ignored report that India's services sector remained in contraction territory for the third straight month in July, as business activity, new orders and employment declined further largely due to the COVID-19 pandemic and local restrictions. On the global front, Asian markets were trading mostly higher as traders shrugged off concerns about the rapid spread of the delta variant of the coronavirus amid continued optimism about the economic outlook.
Nifty futures opened at 16200.00 points against the previous close of 16146.50 and opened at a low of 16188.00 points. Nifty Future closed with an average movement of 106.70 points and a rise of around 110.00 points and 16256.50 points...!!!
On the NSE, the midcap 100 index will decline 1.19% and smallcap 100 index is closing decline 1.01%. Speaking of various sectoral indices, the NSE saw gains in Banking and financial services stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, August gold opened at Rs.47770, fell from a high of Rs.48147 points to a low of Rs.47770, with a rise of 263 points, a trend of around Rs.48080 and September Silver opened at Rs.68000, fell from a high of Rs.68350 points to a low of Rs.67956, with a rise of 397 points, a trend of around Rs.68311.
Meanwhile, Automotive Component Manufacturers Association of India (ACMA) has said that the auto component industry is cautiously optimistic about growth prospects in the current fiscal (FY22) with the economy progressively returning to normal and as vehicular demand picks up. It noted that the challenges on the front of availability of semiconductors, escalating prices as also the availability of raw materials, challenges in logistics -- including non-availability and high prices of containers, among others, continue to hinder a smooth recovery.
ACMA said the industry, which saw its turnover declined by 3 percent in the last fiscal, also remains cautious regarding a third wave of the COVID-19, which could again put pressure on the performance. It also said the industry is looking at sustained growth in order to initiate investments, which have been on hold for the last few years, owing to various challenges.
Technically, the important key resistances are placed in Nifty future are at 16303 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 16373 – 16404 levels. Immediate support is placed at 16202 – 16188 levels.
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