Dear Trader…
Indian equity benchmarks made a strong comeback on Monday after three days of losses, due to strong momentum in global markets, favorable domestic economic data and good Q2 results announcement. After opening in the green, benchmark indices continued to gain momentum. Traders took encouragement as the Reserve Bank of India (RBI) said that retail -- covering housing and vehicles, credit cards, etc -- showed an accelerated growth rate of 12.1 per cent in September 2021 against 8.4 per cent in September 2020.
Traders remained energized after the finance ministry stating that Goods and Services Tax (GST) collection remained above Rs 1 lakh crore for the fourth month in a row at over Rs 1.30 lakh crore in October, indicating the impact of festive buying. This is the second highest collection of GST since its implementation on July 1, 2017. The tax collections last month on goods sold and services rendered was 24 per cent higher than in October 2020.
Nifty futures opened at 17748.00 points against the previous close of 17715.30 and opened at a low of 17730.05 points. Nifty Future closed with an average movement of 307.70 points and a rise of around 301.70 points and 18017.00 points...!!
On the NSE, the midcap 100 index will rise 1.82% and smallcap 100 index is closing rise 0.86%. Speaking of various sectoral indices, the NSE saw heavy gains in realty, metal, media and IT stocks, while all other sectoral indices also closed higher.
At the start of intra-day trading, December gold opened at Rs.47615, fell from a high of Rs.47731 points to a low of Rs.47590.00 with a decline of 3 points, a trend of around Rs.47632 and December Silver opened at Rs.64449, fell from a high of Rs.64631 points to a low of Rs.64220, with a decline of 54 points, a trend of around Rs.64480.
Meanwhile, CARE Ratings in its latest report has said that despite rising economic activities, finished steel consumption in September 2021 was lower by 3.6 percent over the corresponding month last year but production of the metal grew. The consumption of steel at 8.2 million tonne in September 2021 was also down by 3 percent as compared to September in 2019.
However, the report said the consumption of the metal was higher by 2.3 percent on a month-on-month basis. Crude and finished steel production during September 2021 stood at 9.5 million tonne and 9 million tonne respectively, indicating a growth of 8.7 per cent and 4.7 percent over the year-ago month. July to September being a seasonally weak quarter has led to subdued demand in the domestic market for finished steel.
According to the report, the demand and supply of steel are expected to improve with a rise in economic activities and will also be driven by the infrastructure push of the government. On a cumulative basis, production of crude steel for the first half (April-September) of the current fiscal was 57.2 million tonne, registering a 30 percent growth year-on-year, while consumption was at 49.1 million tonne, a jump of 34.4 percent over the corresponding period of FY21.
Technically, the important key resistances are placed in Nifty future are at 18088 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 18108 – 18180 levels. Immediate support is placed at 17880 – 17808 levels.
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