Dear Trader…
Indian equity benchmarks ended choppy session marginally in green in tandem with a similar recovery in other markets as investors waited for more details to assess the severity of the Omicron coronavirus variant on the world economy, allowing battered stock markets and oil prices to recover. The benchmarks staged a gap down opening, as traders remained cautious with report that as many as 438 infrastructure projects, each worth Rs 150 crore or more, have been hit by cost overruns totalling more than Rs 4.34 lakh crore.
Traders also took a note of Chief Economic Adviser (CEA) K V Subramanian’s statement that BRICS nations need to strengthen cooperation among themselves for supporting the recovery of BRICS economies and maintaining macro-economic and financial stability while protecting against future uncertainties and risks.
However, key indices soon recovered their losses and traded on positive note as traders got some support as eminent economist Pinaki Chakraborty said that India's macroeconomic situation is certainly better than what it was a year ago, while expressing hope that the country will be back on the path of economic growth if there is no major third wave of the COVID-19 pandemic.
Nifty futures opened at 17094.75 points against the previous close of 17052.15 and opened at a low of 16850.10 points. Nifty Future closed with an average movement of 357.75 points and a rise of around 41.10 points and 17093.25 points...!!
On the NSE, the midcap 100 index will decline 1.35% and smallcap 100 index is closing decline 2.61%. Speaking of various sectoral indices, the NSE saw gains in only IT and Financial Services stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, December gold opened at Rs.47700, fell from a high of Rs.47980 points to a low of Rs.47550.00 with a rise of 225 points, a trend of around Rs.47810 and December Silver opened at Rs.63011, fell from a high of Rs.63231 points to a low of Rs.62418, with a rise of 470 points, a trend of around Rs.62515.
Meanwhile, Industry body -- The PHD Chamber of Commerce and Industry (PHDCCI) has urged the GST Council to rationalise rates and stated that the current rates are not in sync with the demand creation and employment generation in the country. Pradeep Multani, President, PHDCCI, said ‘We urge the government to rationalise the GST rates into three major slabs of 5 per cent, 10 per cent and 15 per cent along with a few sin goods in the slab of 28 per cent’.
He suggested that items in category of 12 per cent rate should be reduced to 10 per cent and goods in the category of 18 per cent rate should be reduced to 15 per cent. He added that there should not be more than 25 items in the category of sin goods.
Multani said ‘The rationalisation of the tax slabs would create tremendous demand in the economy, subside the inflationary pressures and enhance the sentiments of producers for production and create employment opportunities for the growing workforce in the country’.
Technically, the important key resistances are placed in Nifty future are at 17133 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 17188 – 17202 levels. Immediate support is placed at 16808 – 16770 levels.
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