Dear Trader…
Indian equity benchmarks snapped a two-day winning streak and ended over a percent lower on Friday, dragged by losses across most sectors, especially Energy, Banking and FMCG shares amid uncertainty surrounding the Omicron variant. Markets started trade on a positive note, as traders took some support with the Centre for Monitoring Indian Economy’s statement that the index of consumer sentiment for rural India inched up by 0.3% for the week ended November 28 while the index for consumer expectation went up by 1.3%, a much lower jump compared to weeks before the announcement of the repeal of farm laws.
However, frontline indices quickly reversed their gains and slipped into red terrain in afternoon deals, as traders turned cautious with private report increased its current account deficit (CAD) forecast to 1.9 per cent of GDP at $60 billion for 2021-22 as compared to $45 billion earlier, following the record $23.27 billion trade deficit in November. It said trade deficit -- the difference between a country's imports and exports -- has been rising and remains sticky, driven by weaker exports, surging domestic activity and higher commodity prices.
Nifty futures opened at 17468.70 points against the previous close of 17432.65 and opened at a low of 17220.00 points. Nifty Future closed with an average movement of 295.00 points and a decline of around 180.35 points and 17252.30 points...!!
On the NSE, the midcap 100 index will decline 0.01% and smallcap 100 index is closing rise 0.82. Speaking of various sectoral indices, the NSE saw gains in only Media stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, February gold opened at Rs.47501, fell from a high of Rs.47686 points to a low of Rs.47501.00 with a rise of 282 points, a trend of around Rs.47683 and March Silver opened at Rs.61165, fell from a high of Rs.61490 points to a low of Rs.61070, with a rise of 176 points, a trend of around Rs.61299.
Meanwhile, Indian service sector continued to strengthen, with a substantial upturn in new orders underpinning output growth. The Services Purchasing Managers' Index, compiled by IHS Markit, eased to 58.1 in November from 58.4 in October, but last month's rate of growth was the second-best in over a decade and well above the 50-mark separating growth from contraction for a fourth straight month. Input costs rose at the second-strongest pace in close to ten years, while the rate of charge inflation softened from October's recent high.
Amid reports of higher fuel, labour, material, retail and transportation costs, average input prices among Indian services companies rose further in November. The overall rate of inflation quickened from October and was the second-strongest in almost a decade, behind April. The report also said few firms transferred higher input costs through to their clients by lifting selling prices, the vast majority kept their fees unchanged from October. As a result, output charges rose at a moderate rate that was slower than in the prior month.
Technically, the important key resistances are placed in Nifty future are at 17303 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 17373 – 17404 levels. Immediate support is placed at 17007 – 16808 levels.
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