Dear Trader…
Snapping four day losing streak, Indian equity benchmarks ended the volatile day of trade in green terrain on Monday, as traders opted to buy beaten-down but fundamentally strong stocks. Markets started the session with weakness and extended losses in first half of the trade as traders remained anxious, as in its recent Regional Economic Outlook (REO), the IMF noted that the pandemic has taken a turn for the worse in Asia since the spring, along with the region’s growth outlook.
The growth projection for the Asia and Pacific region is downgraded by more than 1 percent to 6.5 percent compared to the April 2021 forecasts--more than for any other region. Valuation concerns coupled with persistent selling by FIIs also kept traders on sidelines. Foreign portfolio investors (FPIs) have turned net sellers in Indian market by pulling out Rs 3,825 crore in October so far.
However, local bourses staged smart recovery in second half of the trade as traders went for bargain hunting. Some support also came after industry chamber PHDCCI said it expects strong GDP growth in the coming quarters with the economic recovery gaining momentum. Out of the 12 lead economic and business indicators of QET (Quick Economic Trends), tracked by the industry body, nine have shown an uptick in the sequential growth for the month of September 2021 as compared to six showing the uptrend in August 2021.
Nifty futures opened at 18220.00 points against the previous close of 18144.55 and opened at a low of 17986.60 points. Nifty Future closed with an average movement of 247.75 points and a rise of around 9.35 points and 18153.90 points...!!
On the NSE, the midcap 100 index will decline 1.70% and smallcap 100 index is closing decline 2.34%. Speaking of various sectoral indices, the NSE saw gains in PVT Bank, Bank, Financial Services and PSU Bank stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, December gold opened at Rs.47900, fell from a high of Rs.48160 points to a low of Rs.47855.00 with a rise of 317 points, a trend of around Rs.48114 and December Silver opened at Rs.65770, fell from a high of Rs.66225 points to a low of Rs.65770, with a rise of 349 points, a trend of around Rs.66005
Meanwhile, executing confidence over India’s economic growth, Industry chamber -- PHD Chamber of Commerce and Industry (PHDCCI) has said it expects strong GDP growth in the coming quarters with the economic recovery gaining momentum. Out of the 12 lead economic and business indicators of QET (Quick Economic Trends), tracked by the industry body, nine have shown an uptick in the sequential growth for the month of September 2021 as compared to six showing the uptrend in August 2021. Pradeep Multani, President, PHDCCI, said ‘the uptrend in the lead economic and business indicators in the recent months shows that the economic recovery is catching pace and strong economic growth is expected in the coming quarters’.
However, he suggested, at this juncture, there is a need to address the high commodity prices and shortages of raw materials to support the consumption and private investments in the country. PHDCCI stated GST collections, stock market, UPI transactions, exports, exchange rate, forex reserves, CPI inflation, WPI inflation and unemployment rate have registered positive sequential growth in September 2021 as compared to August 2021. Besides, the unemployment scenario improved to 6.9 per cent in September 2021 from 8.3 per cent in the previous month.
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 18232 – 18272 levels. Immediate support is placed at 18008 – 17970 levels.
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