Dear Trader…
Indian equity benchmarks traded with a positive bias for most part of the day but selling activity which took place during late hour of trade mainly forced the markets to cut all of their gains and ended Friday’s session with losses, amid selling in Metal, Banking and Realty counters. The benchmarks opened higher, as sentiments got a boost as RBI article said the economy is gaining traction with gradual pick up in manufacturing activity and moderation in contraction of services, spurred by comfortable liquidity conditions.
However, key indices wiped off initial gains and turned negative in the late afternoon session, as traders got anxious after traders' association CAIT said that the change of regime in Afghanistan and the uncertainty over future will hit the bilateral trade between the country and India. The Confederation of All India Traders (CAIT) also cautioned domestic exporters and sought the Centre's intervention in preventing losses to the business community.
Nifty futures opened at 16668.00 points against the previous close of 16595.85 and opened at a low of 16547.50 points. Nifty Future closed with an average movement of 141.45 points and a decline of around 36.05 points and 16559.80 points...!!!
On the NSE, the midcap 100 index will rise 0.03% and smallcap 100 index is closing rise 0.29. Speaking of various sectoral indices, the NSE saw gains in FMCG, PSU Bank, Pharma and IT stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, October gold opened at Rs.47374, fell from a high of Rs.47437 points to a low of Rs.47136.00 with a rise of 33 points, a trend of around Rs.47313 and September Silver opened at Rs.63475, fell from a high of Rs.63550 points to a low of Rs.63100, with a rise of 133 points, a trend of around Rs.63359.
Meanwhile, RBI in an article on the 'State of Economy' has said that the economy is gaining traction with gradual pick up in manufacturing activity and moderation in contraction of services, spurred by comfortable liquidity conditions. Observing that the retreat of the second wave of coronavirus pandemic has been slow, it said, the aggregate demand conditions are buoyed by the release of pent-up demand post unlock, while the supply situation is improving with the monsoon catching up to its normal levels and sowing activity gaining pace.
The article noted that with the cautious unwinding of restrictions by states, human mobility has risen to levels last seen in February 2021, prior to the onset of the second wave. Electricity generation readings, too, have recovered to peak levels seen in April 2021 and are closing on to the pre-pandemic level (July 2019). As per the article, fuel consumption recorded an uptick in July 2021. While the consumption of petrol reached pre-pandemic levels and aviation turbine fuel (ATF) recorded a sequential improvement, diesel consumption slipped marginally.
Technically, the important key resistances are placed in Nifty future are at 16606 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 16636 – 16676 levels. Immediate support is placed at 16505 – 16474 levels.
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