Dear Trader…
Indian equity benchmarks traded under pressure for the third consecutive session and lost nearly a percent on Friday, on the back of unabated selling pressure in select index heavyweights. Markets made a gap-down opening, as the Centre extended the nationwide Covid-19 containment measures till November 30 as there has been localised spread of the virus in a few states and the disease continues to be a public health challenge in the country. However, key gauges recovered most of initial losses in late morning deals, taking support from the city-based thinktank NCAER stating that most of the sectors are on their way to reach pre-pandemic levels and surpass them.
The National Council for Applied Economic Research (NCAER) said the economic news has been favourable on balance, on account of better than projected fiscal outcomes, a rebound in most high-frequency indicators, and another impetus to policy reform, including a hitherto inconceivable privatisation of Air India. However, markets failed to hold recovery and fell sharply in afternoon deals.
Nifty futures opened at 17913.10 points against the previous close of 17860.70 and opened at a low of 17659.25 points. Nifty Future closed with an average movement of 284.75 points and a decline of around 168.10 points and 17745.00 points...!!
On the NSE, the midcap 100 index will decline 0.15% and smallcap 100 index is closing decline 0.46. Speaking of various sectoral indices only IT, PVT Bank, Bank and Financial Services stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, December gold opened at Rs.47836, fell from a high of Rs.47944 points to a low of Rs.47401.00 with a decline of 482 points, a trend of around Rs.47479 and September Silver opened at Rs.65035, fell from a high of Rs.65538 points to a low of Rs.64528, with a rise of 62 points, a trend of around Rs.65051.
Meanwhile, Associations and industry bodies representing the hosiery and garments units decried the government's proposed move to raise the basic GST rates by five per cent from January 2022. In order to save the industry, the associations urged the government not to raise the goods and services tax (GST) rates.
The president of the Federation of Hosiery Manufacturers Association of India, K B Agarwala said that the move will affect the hosiery and garments industry. He said majority of the players in the industry will be impacted due to the inverted duty structure of 15 per cent which will raise GST rates. He stated that the industry is already hit by the pandemic as sales of garments and hosiery products are still at 65 per cent of the pre-COVID levels.
Agarwala further said most indicators have hinted that recovery will start from the end of 2022 and any rise in taxes will be disastrous for the industry. He added that the players in the industry are hit by the high requirement of working capital, the credit cycle of which has been extended due to the pandemic.
Technically, the important key resistances are placed in Nifty future are at 17808 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 17818 – 17838 levels. Immediate support is placed at 17676 – 17606 levels.
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