Dear Trader…
Selling which occurred in late trade mainly dragged Indian equity benchmarks lower on Wednesday. After a cautious start, markets managed to trade mostly in green terrain for the day as traders continued to buy beaten down but fundamentally strong stocks. Sentiments remained upbeat after a survey by the National Council of Applied Economic Research (NCAER) showed that as the second wave of Covid-19 eased off, business sentiment in the country hit an over two-year high in the September quarter (Q2) of the current financial year (FY22).
However, traders booked profit in last leg of trade which mainly dragged key gauges lower. Traders turned anxious after Chairman of the 15th Finance Commission -- N K Singh has said the International Monetary Fund’s (IMF's) decision to revise India's potential growth forecast downwards to 6 per cent citing the coronavirus pandemic is a ‘gross under estimation’ and observed that calculations of growth potential are always problematic.
Nifty futures opened at 18308.00 points against the previous close of 18314.15 and opened at a low of 18181.00 points. Nifty Future closed with an average movement of 169.00 points and a decline of around 118.15 points and 18196.00 points...!!
On the NSE, the midcap 100 index will rise 0.08% and smallcap 100 index is closing rise 0.27. Speaking of various sectoral indices, the NSE saw gains in PSU Bank, IT, Pharma, FMCG and Realty stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, December gold opened at Rs.47761, fell from a high of Rs.47837 points to a low of Rs.47620.00 with a rise of 6 points, a trend of around Rs.47819 and September Silver opened at Rs.65035, fell from a high of Rs.65058 points to a low of Rs.64528, with a decline of 79 points, a trend of around Rs.64910.
Meanwhile, chairman of the 15th Finance Commission -- N K Singh has said the International Monetary Fund’s (IMF's) decision to revise India's potential growth forecast downwards to 6 per cent citing the coronavirus pandemic is a ‘gross under estimation’ and observed that calculations of growth potential are always problematic. He mentioned ‘The issue of our medium term growth potential projected by the IMF last week by recaliberating it from 6.25 per cent to 6 per cent, in my view, is gross under estimation.’
He said India's growth is projected at 9.5 per cent in financial year 2021-22 and 8.5 per cent in FY 2022-23, reflecting base effects and strong global growth. Potential growth is the rate of growth that an economy can sustain over the medium term without generating excess inflation.
Besides, he said there was a need to raise India's tax ratio, both from macroeconomic and redistributive perspective, and also enhance fiscal space for financing public outlays. Terming the implementation of Goods and Services Tax (GST) as a path breaking reform, he said revenue data in the last few months have also suggested encouraging revenue share from the GST.
Technically, the important key resistances are placed in Nifty future are at 18232 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.
Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in
