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Indian equity benchmarks closed lower for the third day in a row on weekly F&O expiry day, as index heavyweights such as Asian Paints, Reliance Industries and Infosys reeled under selling pressure. Key Indian indices slumped after opening in the green, as traders turned cautious with report stated that amid concerns about the rising oil prices, India, the world's third-largest energy consumer, has warned that high oil prices will undermine global economic recovery, and nudged Saudi Arabia and other OPEC nations to work towards affordable and reliable supplies. Petrol and diesel prices have shot up to record highs across the country after relentless price increases since early May.
However, markets managed to recover some lost ground in the last hour of trade, as some optimism remained among traders with Moody's Analytics in a report said that a rebound in industrial production and demand owing to easing mobility restrictions fuelled India's current recovery with production appearing to have regained lost ground during the second Covid-19 wave. However, it has flagged concerns around volatility in inflation caused by rising food and fuel prices.
Nifty futures opened at 18365.50 points against the previous close of 18316.70 and opened at a low of 18077.50 points. Nifty Future closed with an average movement of 288.50 points and a decline of around 76.20 points and 18240.50 points...!!
On the NSE, the midcap 100 index will decline 0.39% and smallcap 100 index is closing decline 0.80. Speaking of various sectoral indices, the NSE saw gains in PSU Bank, PVT Bank, Bank, Financial Services and Auto stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, December gold opened at Rs.47529, fell from a high of Rs.47596 points to a low of Rs.47340.00 with a decline of 84 points, a trend of around Rs.47415 and September Silver opened at Rs.65781, fell from a high of Rs.65925 points to a low of Rs.64983, with a decline of 406 points, a trend of around Rs.65201.
Meanwhile, India Ratings and Research (Ind-Ra) in its latest report has said that it witnessed a continuous recovery in the average current collection efficiency to 80 percent in August 2021 from 79 percent in July 2021 across its 143 rated securitisation transactions. It noted that there has been a 10 percentage point increase in the collection efficiency since May 2021 for all the outstanding transactions, after reducing by 13.4 percentage points from March-May 2021.
The agency said there is likely to have been a further improvement in September 2021 collections. Securitisation involves transactions where credit risks in assets are redistributed by repackaging them into tradable securities with different risk profiles. It may give investors of various classes an access to exposures which they otherwise might be unable to access directly. It said there is an improvement in the current collections across asset classes, except in unsecured business loans and tractor loans.
With the festive season, the agency expects demand to pick-up, not only for the non-discretionary sector, but also for discretionary products. It noted that this will allow small businesses to perform better. It also said that the rural area impacted substantially from the second Covid-19 wave, there is still a downward pressure on collections for its rated tractor loan transactions. It added that prospects for the agricultural sector and rural demand looks promising, which could help borrowers in the near term.
Technically, the important key resistances are placed in Nifty future are at 18272 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 18373 – 18330 levels. Immediate support is placed at 18108 – 18088 levels.
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