Dear Trader…
In a range-bound session, Indian equity benchmarks closed flat on a positive bias on Tuesday amid gains in Utilities, Consumer Discretionary, Auto and TECK shares. Indices opened a day with good gap, as the government data showed India's retail inflation in August marginally eased to 5.3%, staying within Reserve Bank of India's comfort zone for a second month. Inflation in the food basket was 3.11% in August compared to 3.96% in the preceding month.
Some optimism also came as Union finance minister Nirmala Sitharaman has reiterated that the disinvestment plan of the government was on track and the Development Finance Institution (DFI), announced in the Budget, will become operational soon.
But, key indices cut most of their gains in late afternoon session after data showing that the wholesale price-based inflation rose marginally to 11.39% in August, mainly due to higher prices of manufactured goods, even as prices of food articles softened. In July 2021, WPI inflation stood at 11.16%.
Nifty futures opened at 17410.00 points against the previous close of 17359.30 and opened at a low of 17368.70 points. Nifty Future closed with an average movement of 66.00 points and a rise of around 27.70 points and 17387.00 points...!!!
On the NSE, the midcap 100 index will rise 1.35% and smallcap 100 index is closing rise 0.29. Speaking of various sectoral indices only Metal, FMCG and Finance Service 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.46868, fell from a high of Rs.47020 points to a low of Rs.46620.00 with a rise of 102 points, a trend of around Rs.47010 and September Silver opened at Rs.63203, fell from a high of Rs.63475 points to a low of Rs.62603, with a rise of 89 points, a trend of around Rs.63388.
Meanwhile, ICRA Ratings in its latest report has said that the asset under management of the non-banking financial company (NBFC) segment declined in the first quarter of 2021-22 due to lower disbursements and portfolio rundown. After witnessing an uptick in Q3 and Q4 FY2021, disbursements for NBFCs and housing finance companies (HFCs) declined again in Q1 FY22, and was down by about 55 per cent on a sequential basis. Given this subdued disbursements and portfolio rundown in the absence of any moratorium like in Q1 FY2021, the (AUM) for NBFC-segment shrunk in Q1 FY2022, while the HFC AUM remained flat.
According to the report, while the disbursements of the sector revived quite sharply in July 2021 on the back of the pent-up demand, sustainability of the same would depend on the broader macro-economic indicators. It also said that the second wave has temporarily pushed back the revival for the sector. Icra expects overall disbursements for FY2022 to be higher by about 6-8 per cent on a year-on-year basis, on the back of the two consecutive years of year-on-year contraction. From an AUM perspective, the sector is expected to grow at 8-10 per cent in FY2022. Growth would be driven by the improvement in demand from all key target segments vis-a-vis FY2021, on the back of a low base.
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 17272 – 17170 levels.
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