Dear Trader…
Indian equity benchmarks snapped their three-day record-breaking streak and ended in the negative territory on Wednesday as investors booked profit at record highs ahead of weekly expiry of index futures and option contracts. The benchmark Indices opened in green due to favourable GDP data. India's economy grew at a record 20.1 per cent year-on-year in April-June quarter, helped by a low base of the year-ago period coupled with improved manufacturing in spite of a devastating second wave of Covid-19 cases.
However, domestic indices failed to hold onto its early gains and turned negative in late morning session, as traders got worried, after India’s manufacturing sector activities moderated in August, as business orders and production rose at softer rates due to the pandemic and rising input costs.
Nifty futures opened at 17150.00 points against the previous close of 17122.25 and opened at a low of 17083.00 points. Nifty Future closed with an average movement of 145.75 points and a decline of around 36.00 points and 17086.25 points...!!!
On the NSE, the midcap 100 index will rise 0.75% and smallcap 100 index is closing rise 0.34. Speaking of various sectoral indices, only Metal, IT, Financial Services and Pharma stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, October gold opened at Rs.47129, fell from a high of Rs.47276 points to a low of Rs.47030.00 with a rise of 120 points, a trend of around Rs.47240 and September Silver opened at Rs.62999, fell from a high of Rs.63588 points to a low of Rs.62730, with a rise of 672 points, a trend of around Rs.63588.
Meanwhile, Moody's Investors Service in its August update to 'Global Macro Outlook 2021-22' has said the economic activity in India is picking up with the gradual easing of COVID restrictions and there could be further upside to growth as economies around the world gradually reopen. Moody's retained India's growth forecast for the 2021 calendar year at 9.6 per cent and 7 per cent for 2022.
The rating agency said it expects the Reserve Bank to maintain an accommodative policy stance until economic growth prospects ‘durably improve’. It mentioned ‘We expect the RBI to maintain the status quo until the end of this year. We expect to see an increasing number of emerging market central banks shift to a neutral policy stance amid their gathering growth momentum later this year and early next year.’
Technically, the important key resistances are placed in Nifty future are at 17107 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 17137 – 17177 levels. Immediate support is placed at 17007 – 16888 levels.
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