Dear Trader…
Indian equity benchmarks ended in the red for the fourth consecutive day on Friday, amid volatility, due to selling pressure in heavyweights such as ITC, Maruti Suzuki and Infosys. The benchmark indices had a gap-up opening on the back of positive global cues. Traders got encouragement as Icra Rating has said that the economy finally looks nearly out of the pandemic woods, helping the Q2 GDP print at 7.7 per cent, with half of the 15 high-frequency indicators recovering to the pre-pandemic levels in the second quarter.
However, markets were unable to sustain their early gains and slipped into the negative zone in noon deals, as traders turned cautious as Union Power Secretary Alok Kumar stressed on the need to have strategic fuel reserves to insulate the nation from supply shocks for at least a month, in the backdrop of the ongoing coal shortage at power plants in the country. However, losses remain capped as some optimism remained among traders with Niti Aayog Vice Chairman Rajiv Kumar’s statement that Indian economy is expected to grow 10.5 percent or more in the current fiscal. He also said that modernisation of the retail sector is very much on the cards.
Nifty futures opened at 18247.80 points against the previous close of 18202.90 and opened at a low of 18051.10 points. Nifty Future closed with an average movement of 266.90 points and a decline of around 64.05 points and 18138.85 points...!!
On the NSE, the midcap 100 index will decline 0.87% and smallcap 100 index is closing decline 1.25. Speaking of various sectoral indices, the NSE saw gains in Realty, PVT Bank, Bank and Financial Services stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, December gold opened at Rs.47555, fell from a high of Rs.48080 points to a low of Rs.47482.00 with a rise of 624 points, a trend of around Rs.48028 and September Silver opened at Rs.65330, fell from a high of Rs.66111 points to a low of Rs.65110, with a decline of 829 points, a trend of around Rs.65842.
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.
Technically, the important key resistances are placed in Nifty future are at 18202 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 18272 – 18303 levels. Immediate support is placed at 18008 – 17970 levels.
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