Dear Trader…
Indian bourses closed in red terrain in today session with Sensex and Nifty future down by 949 and 289 points, respectively. Selling in frontline blue chip stocks such as HCL Tech, Indusind Bank and Infosys weighted down on the markets. Besides, broader indices were also trading in red, dragging their larger peers lower during the trade.
Sentiments were fragile as country's foreign exchange reserves declined by $2.713 billion to $637.687 billion in the week to November 26, RBI data showed. In the reporting week ended November 26, the dip in the foreign exchange reserves was on account of a decline in foreign currency assets (FCA), a major component of the overall reserves and gold reserves.
Traders were also worried as India Ratings and Research (Ind-Ra) stated that tightening of norms may increase non-banking finance companies' (NBFCs) headline non-performing advances (NPA) by around one third.
Nifty futures opened at 17247.70 points against the previous close of 17239.00 and opened at a low of 16942.05 points. Nifty Future closed with an average movement of 313.50 points and a decline of around 289.00 points and 16950.00 points...!!
On the NSE, the midcap 100 index will decline 1.42% and smallcap 100 index is closing decline 1.09. Speaking of various sectoral indices, IT, Pharma, Auto and FMCG stocks saw heavy selling on the NSE, while all other sectoral indices also closed lower.
At the start of intra-day trading, February gold opened at Rs.47953, fell from a high of Rs.48030 points to a low of Rs.47857.00 with a rise of 66 points, a trend of around Rs.47969 and March Silver opened at Rs.61606, fell from a high of Rs.61719 points to a low of Rs.61280, with a decline of 94 points, a trend of around Rs.61422.
Meanwhile, Union Minister of Micro, Small and Medium Enterprises (MSME) Narayan Rane has urged Indian entrepreneurs to take advantage of closure of factories in China. He said Indian industrialists should start manufacturing the products which are no longer produced in China. He noted that China is number one in the world in terms of production and it is leading with 64 per cent share in global manufacturing. However, many companies are shutting down in that country.
The minister said 'we should also take up marketing and export of these products. At present, India's manufacturing share is nearly 6 percent. If we add another 10 per cent, our GDP would increase significantly. This will help the country become a super power’. He also said the latest machinery should be used for manufacturing the products which are no longer made in China, so that India can capture global markets by maintaining quality.
Rane also emphasized the importance of having an ‘industrial environment’. He said a flourishing industrial environment brings stability to society by providing innovative solutions and also inspires the younger generation to think creatively and dares them to take the plunge. Hence, he said the emphasis on MSME growth and sustenance is a must.
Technically, the important key resistances are placed in Nifty future are at 17007 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 17037 – 17077 levels. Immediate support is placed at 16880 – 16808 levels.
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