Dear Trader…
Indian equity benchmarks returned to the green zone after four days of losing streak and settled around a percent higher on Monday. Hopes of strong September quarter earnings, which will start with IT giant TCS, and continuation of dovish monetary policy from the Reserve Bank of India later in the week lifted investors' sentiment. Key gauges opened a day with good gap and managed to hold its bullish stream throughout the day, as sentiments got a boost with former Niti Aayog vice-chairman Arvind Panagariya’s statement that the fundamentals of the Indian economy are sound as the real GDP in Q3 and Q4 of FY21 already crossed the pre-pandemic level.
However, during the afternoon session markets pared gains, as some concern came with report that trade deficit spiked to almost $23 billion in September from $13.8 billion in the previous month, as imports surged at a much faster pace than exports, driven by elevated global crude oil prices and massive purchases of gold in the build-up to the festival season. But, markets continued their firm trade to end higher, as optimism remained among traders with Centre for Monitoring Indian Economy’s (CMIE) report stated that employment increased by 8.5 million in September, led by the salaried jobs category, as the unemployment rate declined to 6.9 per cent during the month.
Nifty futures opened at 17571.00 points against the previous close of 17530.20 and opened at a low of 17560.05 points. Nifty Future closed with an average movement of 184.95 points and a rise of around 184.80 points and 17715.00 points...!!
On the NSE, the midcap 100 index will rise 1.57% and smallcap 100 index is closing rise 1.58%. Speaking of various sectoral indices, the NSE saw heavy gains in metal, media, realty and PSU bank stocks, while all other sectoral indices also closed higher.
At the start of intra-day trading, December gold opened at Rs.46532, fell from a high of Rs.46624 points to a low of Rs.46341.00 with a decline of 56 points, a trend of around Rs.46450 and December Silver opened at Rs.60517, fell from a high of Rs.60923 points to a low of Rs.60070, with a decline of 81 points, a trend of around Rs.60469.
Meanwhile, rating agency ICRA in its latest report has said that the higher-than-budgeted revenue collections, mostly higher tax devolution from the Centre, will help states reduce their market borrowing to Rs 7.6 lakh crore in FY22, which is 4.7 per cent lower than the year-ago level. It pointed out that this is because after the 12.6 percent contraction in the gross state development loan issuance to Rs 3.1 lakh crore in H1 of FY22.
The report said the RBI pegs the market borrowing of 26 states (other than Odisha and Tripura) and two Union territories at Rs 2 lakh crore, which is similar to the level in Q3 FY21. Factoring in its expectation of higher-than-budgeted central tax devolution in FY22, it projects the net state development loans (SDL) issuance at Rs 1.7 lakh crore in Q4 of FY22, which will be 15.3 per cent lower than Rs 2 lakh crore in Q4 of FY21.
Forecasting that gross SDL issuance will decline by 8.1 per cent in the first three quarters of FY22, the report said if the actual issuance of Rs 3 lakh crore in H1 added to the gross issues of Rs 2 lakh crore indicated for Q3, total issuance will contract by 8.1 lakh crore to Rs 5.1 lakh crore the first three quarters of FY22 from Rs 5.6 lakh crore in the same period last fiscal.
Technically, the important key resistances are placed in Nifty future are at 17747 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 17770 – 17008 levels. Immediate support is placed at 17676 – 17606 levels.
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