Dear Trader…
Indian equity benchmarks ended flat with positive bias on Monday, failing to sustain gains made earlier in the day. The benchmarks staged a gap opening, as sentiments got a boost as Commerce and Industry Minister Piyush Goyal said Indian economy is back in action and it is clear from several indicators such as rising exports and increasing foreign direct investment (FDI) inflows into the country. Some support also came with outgoing chief economic advisor K V Subramanian’s statement that Indian economy is expected to see a double-digit growth in 2021-22 and between 6.5-7 per cent in the next financial year.
However, profit booking at higher levels led to the benchmarks coming off intraday highs. Traders got anxious with data showing that retail inflation based on Consumer Price Index (CPI) inched up to 4.48 per cent in October compared to 4.35 per cent in September, due to an uptick in food prices. Though, it eased compared with 7.61 per cent in October 2020. Besides, the Index of Industrial Production (IIP) indicating industrial growth slipped to 3.1 per cent in September, mainly due to the waning low base effect while mining and manufacturing sectors performed well.
Nifty futures opened at 18239.90 points against the previous close of 18133.45 and opened at a low of 18082.00 points. Nifty Future closed with an average movement of 328.00 points and a decline of around 2.45 points and 18131.00 points...!!
On the NSE, the midcap 100 index will rise 0.32% and smallcap 100 index is closing decline 0.25. Speaking of various sectoral indices only Pharma, FMCG, IT, Realty and PVT Bank were seen Buying on the NSE, while all other sectoral indices closed Lower.
At the start of intra-day trading, December gold opened at Rs.49170, fell from a high of Rs.49374 points to a low of Rs.49092.00 with a rise of 6 points, a trend of around Rs.49320 and December Silver opened at Rs.66669, fell from a high of Rs.67150 points to a low of Rs.66350, with a decline of 139 points, a trend of around Rs.67005.
Meanwhile, Commerce and Industry Minister Piyush Goyal has said Indian economy is back in action and it is clear from several indicators such as rising exports and increasing foreign direct investment (FDI) inflows into the country. Goyal stated that merchandise exports during April-October this fiscal stood at $232 billion and total FDI during the first four months of this fiscal rose by 62 per cent.
He added there was growth in employment over the same month last year, and manufacturing PMI rose to 55.9 in October while services PMI reached a decade high of 58.4 in the month.
Further, he said that global sentiments are changing from 'Why India' to 'Why not India' to now Make in India for the world’ and serve the world from India. Besides, he stated ensuring transparent, trustworthy and resilient supply chains is at the core of trade revival and India has emerged as a source of resilience and a trusted partner during COVID-19.
Technically, the important key resistances are placed in Nifty future are at 18188 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 18202 – 18232 levels. Immediate support is placed at 18008 – 17970 levels.
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