Dear Trader…
Indian equity benchmarks ended a lacklustre trading session marginally lower on Monday dragged by losses in Reliance Industries, ICICI Bank, Hindustan Unilever among others. Benchmark indices started the week on a choppy note amid weak global cues. Traders were concerned as a periodic labour force survey by the National Statistical Office (NSO) showed that unemployment rate for all ages in urban areas rose to 10.3 per cent in October-December 2020 as compared to 7.9 per cent in the corresponding months a year ago.
Some cautiousness also came in as India Ratings and Research (Ind-Ra) said that salaried and wages earners will be a drag on overall economic recovery in medium term due to tepid recovery of household consumption. Indian indices extended its early losses in a volatile session, ahead of the Consumer Price Index (CPI) data scheduled to be released later today.
However, buying around lower levels helped benchmarks recover most of their intraday losses in noon deals. Traders also found some solace with Reserve Bank of India (RBI) Governor Shaktikanta Das’ statement that central bank is quite optimistic about its 9.5 percent GDP growth estimate coming true for FY22, and will take steps to gradually move for a cool off in headline inflation to its 4 per cent target. He said the growth will keep rising from a sequential perspective with every quarter, and expected the September quarter to be better than June.
Nifty futures opened at 17355.25 points against the previous close of 17364.30 and opened at a low of 17264.00 points. Nifty Future closed with an average movement of 129.10 points and a decline of around 2.30 points and 17362.00 points...!!!
On the NSE, the midcap 100 index will rise 0.45% and smallcap 100 index is closing rise 0.54. Speaking of various sectoral indices, only Bank and Financial Services 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.46927, fell from a high of Rs.46959 points to a low of Rs.46781.00 with a rise of 44 points, a trend of around Rs.46850 and September Silver opened at Rs.63474, fell from a high of Rs.63474 points to a low of Rs.63012, with a decline of 442 points, a trend of around Rs.63150.
Meanwhile, Industry chamber Ficci in its latest quarterly survey (Q2) has said that the outlook for increased manufacturing activities in the second quarter of this fiscal (Q2FY22) has been significantly improved, though the cost of doing business and production is rising. As per Ficci's survey on manufacturing, industry respondents have attributed the hike in production costs primarily to high fixed costs, higher overhead costs for ensuring safety protocols, and a drastic reduction in volumes due to lockdown.
The hike was also attributed to lower capacity utilisation, high freight charges and other logistic costs, increased cost of raw materials, power cost, and high-interest rates. It said that after experiencing subdued Q1 (April-June 2021-22), the outlook seems to have improved significantly in the second quarter (July-September).
Technically, the important key resistances are placed in Nifty future are at 17404 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 17434 – 17474 levels. Immediate support is placed at 17330 – 17303 levels.
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