Dear
Trader…
Indian
equity benchmarks ended lower by over half percent on Monday following the
downtrend in global equities. Markets opened in the negative territory and
stayed in red for whole day, as traders were concerned with a private report
that foreign funds’ ownership in domestic equities fell to pre-COVID lows and
hit a multi-year low of 19.5 per cent in March this year in NSE500 companies
valued at $619 billion.
Investors
were also cautious ahead of crucial macro-economic data such as industrial
output and retail inflation reading to be out later this week. However, markets
erased most of their initial losses in late afternoon deals, taking support
from a periodic labour force survey by the National Statistical Office (NSO)
showing that the unemployment rate for persons of 15 years and above in urban
areas slipped to 8.7 per cent in October-December 2021 from 10.3 per cent in
the year-ago quarter.
Nifty
futures opened at 16255.55 points against the previous close of 16419.40 and
opened at a low of 16153.75 points. Nifty Future closed with an average
movement of 264.95 points and a decline of around 109.45 points and 16309.95 points…!!
On the NSE, the
midcap 100 index will decline 1.78% and smallcap 100 index is closing decline 2.12%.
Speaking of various sectoral indices, the NSE saw gains in only IT stocks,
while all other sectoral indices closed lower.
At the start
of intra-day trading, June gold opened at Rs.51259, fell from a high of Rs.51386
points to a low of Rs.50943 with a rise of 193 points, a trend of around Rs.51150
and May Silver opened at Rs.62450, fell from a high of Rs.62649 points to a low
of Rs.61163, with a decline of 689 points, a trend of around Rs.61859.
Meanwhile, a
periodic labour force survey by the National Statistical Office (NSO) showed
that the unemployment rate for persons of 15 years and above in urban areas
slipped to 8.7 per cent in October-December 2021 from 10.3 per cent in the
year-ago quarter. It said joblessness was high in October-December in 2020
mainly due to the staggering impact of the lockdown restrictions in the
country, which were imposed to curb the spread of the deadly coronavirus.
According to
the survey, the unemployment rate for persons of age 15 years and above in
July-September 2021 was 9.8 per cent in urban areas. It also showed that the
unemployment rate among females (aged 15 years and above) in urban areas also
declined to 10.5 per cent in October-December 2021 from 13.1 per cent a year
ago. It was 11.6 per cent in July-September 2021. Among males, the unemployment
rate in urban areas also dipped to 8.3 per cent in October-December 2021
compared to 9.5 per cent a year ago. It was 9.3 per cent in July-September
2021.
It further
stated that labour force participation rate in CWS (current weekly status) in
urban areas for persons 15 years of age and above remained unchanged at 47.3
per cent in the October-December quarter of 2021, compared to the same period a
year ago. It was 46.9 per cent in July-September 2021. Labour force refers to
the part of the population which supplies or offers to supply labour for
pursuing economic activities for the production of goods and services and
therefore, includes both employed and unemployed persons.
Technically, the important key resistances are placed in Nifty future are at 16373 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 16404 – 16474 levels. Immediate support is placed at 16160 – 16006 levels.
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