Dear Trader…
Indian equity benchmarks snapped a two-day gaining streak to end Wednesday's session nearly a percent lower mirroring losses in global markets as oil prices hit their highest level in seven years, fuelling concerns about rising inflation. Benchmark indices made a positive opening, as sentiments got a boost with Moody's Investors Service changed its outlook on India's sovereign ratings to stable from negative. Besides, it retained the ratings, both on foreign and domestic currencies, at Baa3. However, the benchmarks witnessed a sharp decline in the second half of the session with a spike in volatility coupled with profit booking at higher levels.
Nifty futures opened at 17838.70 points against the previous close of 17829.75 and opened at a low of 17603.00 points. Nifty Future closed with an average movement of 262.00 points and a decline of around 218.75 points and 17611.00 points...!!
On the NSE, the midcap 100 index will rise 0.91% and smallcap 100 index is closing decline 0.83. Speaking of various sectoral indices, the NSE saw heavy selling in metal, PSU bank, Pharma, Realty, IT and auto stocks, while all other sectoral indices also closed lower.
At the start of intra-day trading, October gold opened at Rs.46674, fell from a high of Rs.46924 points to a low of Rs.46512.00 with a rise of 91 points, a trend of around Rs.46848 and September Silver opened at Rs.60726, fell from a high of Rs.60790 points to a low of Rs.60330, with a decline of 348 points, a trend of around Rs.60638.
Meanwhile, Citing receding downside risks to the economy and financial system, ratings agency Moody’s has upgraded outlook on the Government of India’s ratings to ‘stable’ from ‘negative’, and affirmed India’s sovereign rating. The sovereign rating by Moody’s stands at ‘Baa3’- which is the lowest investment grade, just a notch above junk status.
Moody’s Investors Service has affirmed the country’s foreign-currency and local-currency long-term issuer ratings and the local-currency senior unsecured rating at Baa3. The decision to change the outlook to stable reflects Moody’s view that the downside risks from negative feedback between the real economy and financial system are receding. With higher capital cushions and greater liquidity, banks and non-bank financial institutions pose much lesser risk to the sovereign than Moody’s previously anticipated.
It added ‘And while risks stemming from a high debt burden and weak debt affordability remain, Moody’s expects that the economic environment will allow for a gradual reduction of the general government fiscal deficit over the next few years, preventing further deterioration of the sovereign credit profile’. Moody’s Investors Service had last year downgraded India’s sovereign rating to ‘Baa3’ from ‘Baa2’, saying there will be challenges in implementation of policies to mitigate risks of a sustained period of low growth and deteriorating fiscal position. The outlook on the rating was kept negative.
Technically, the important key resistances are placed in Nifty future are at 17660 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 17707 – 17737 levels. Immediate support is placed at 17588 – 17535 levels.
Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in
