Dear Trader…
Indian equity benchmarks ended with minor losses marked by volatility on Tuesday. Losses in metal, consumer durables and banking stocks pulled the headline gauges lower. After a positive opening, the domestic markets traded lower, as traders got anxious with Rating agency Crisil’s latest report stated that higher diesel prices will shave off the overall profitability of transporters despite an improvement in freight rates since last month following the withdrawal of the monsoons, consumption recovery and higher infrastructure activity.
The markets however, recovered most of their losses by the end of the day as traders found some solace with domestic rating agency Brickwork Ratings revised its growth estimate for the country's gross domestic product (GDP) to 10-10.5 per cent in the current financial year from an earlier expectation of a 9 per cent growth. It said many economic growth indicators are suggesting a faster-than-expected revival in economic activities.
Nifty futures opened at 18130.00 points against the previous close of 18122.75 and opened at a low of 17993.70 points. Nifty Future closed with an average movement of 147.10 points and a decline of around 47.50 points and 18075.25 points...!!
On the NSE, the midcap 100 index will rise 1.16% and smallcap 100 index is closing rise 0.49. Speaking of various sectoral indices only Financial Services, FMCG, Metal and Bank 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.48015, fell from a high of Rs.48186 points to a low of Rs.47976.00 with a rise of 92 points, a trend of around Rs.48110 and September Silver opened at Rs.64877, fell from a high of Rs.65034 points to a low of Rs.64643, with a rise of 19 points, a trend of around Rs.64900.
Meanwhile, domestic rating agency Brickwork Ratings in its latest report has revised its growth estimate for India’s gross domestic product (GDP) to 10-10.5 per cent in the current financial year (FY22) from an earlier expectation of a 9 per cent growth. It said many economic growth indicators are suggesting a faster-than-expected revival in economic activities.
It expects the GDP growth for Q2 FY22 to be at 8.3 per cent (year-on-year), on the back of a 7.4 per cent contraction in Q2FY21. The country’s GDP grew at 20.1 per cent in the first quarter of fiscal 2022. The agency believes that the subsequent quarters too will see recovery if there is no resurgence of the virus in the form of a third wave.
It added ‘Amid the waning possibility of a third wave, we expect the economy to register better growth in the remaining part of the year’. The downside risks of a possible third wave to growth too are limited due to the progress achieved in vaccination. However, the agency said downside risks emanating from rising crude oil prices, mineral products, increasing costs of raw materials and freight rates, disruptions in semiconductor supply and coal supply shortages are likely to downplay the growth momentum.
Technically, the important key resistances are placed in Nifty future are at 18108 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 18188 – 18202 levels. Immediate support is placed at 18008 – 17970 levels.
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