Dear Trader…
Indian equity benchmarks edged lower in a volatile session on Tuesday despite stable global cues. Weakness in heavyweights from the sectors like Energy, PSU, Oil & Gas and Banking dragged the benchmarks lower. Key indices started in the negative territory, as traders got anxious with Finance Secretary T V Somanathan’s statement that the entire revenue loss on account of reduction in excise duty on petrol and diesel by Rs 10 and Rs 5 a litre respectively will be borne by the Centre.
However, key indices recouped most of their losses in afternoon session, taking support from data showing that merchandise exports grew for the eleventh consecutive month to $35.65 billion, up 43 per cent on-year in October, as external demand continued to remain robust.
But, key indices failed to hold recovery and once again slipped to lower levels even as Union Finance Minister Nirmala Sitharaman’s statement that the Centre would release double the monthly amount of tax devolution -- a total of Rs 95,082 crore -- in November to enable the states to step up their capex and spur economic growth close to double digits this fiscal year.
Nifty futures opened at 18120.00 points against the previous close of 18141.00 and opened at a low of 17978.40 points. Nifty Future closed with an average movement of 181.55 points and a decline of around 154.00 points and 17987.00 points...!!
On the NSE, the midcap 100 index will decline 0.27% and smallcap 100 index is closing rise 0.50. Speaking of various sectoral indices, the NSE saw gains in auto and IT stocks, 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.49289 points to a low of Rs.49092.00 with a decline of 31 points, a trend of around Rs.49283 and December Silver opened at Rs.66800, fell from a high of Rs.67108 points to a low of Rs.66625, with a rise of 480 points, a trend of around Rs.67043.
Meanwhile, RBI Deputy Governor Michael Debabrata Patra has said that India is better positioned currently, as its macroeconomic fundamentals have improved significantly, and external sector indicators point to the availability of enough cushions to manage external shocks. He also said India will have to use its macroeconomic strength to neutralise external sector threats.
The deputy governor said ‘I present this strength (macroeconomic fundamentals) as a challenge because the international environment is turning hostile, with geopolitical tensions, the long-lasting scars of COVID and the inevitability of climate change.’ Furthermore, he said countries all over the world are contemplating shifting their policy stances away from a pandemic mode to a more normal one. This will involve global spillovers to which India cannot be immune. Hence external sector viability is critical.’
He further said India is currently one of the fastest-growing major economies in the world. In purchasing power parity (PPP) terms, India is the third-largest economy in the world. He said ‘Projections show that by 2040 India will be the second-largest economy in the world. This, in my view, is the final challenge - preparing, with the BRICS, to be a global economic powerhouse.’
Technically, the important key resistances are placed in Nifty future are at 18008 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 18038 – 18088 levels. Immediate support is placed at 17909 – 17880 levels.
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