Dear Trader…
Rising for a second straight session, Indian equity benchmarks ended on a buoyant note and gained nearly one and a half percent on Monday, taking positive cues from Asian and global markets. After the gap-up start, the benchmarks gradually inched higher, as traders got encouragement with SBI Research in its latest report stated that the income of farmers has grown in the range of 1.3-1.7 times in FY22 from the FY18 levels on average while grain exports soared to over $50 billion. For certain crops in some states (like soyabean in Maharashtra and cotton in Karnataka) farmers' income more than doubled in FY22 from FY18 levels.
Domestic sentiments remained firm in second half of trading session, after the Reserve Bank of India said in its latest monthly bulletin that the Indian economy remains resilient despite formidable global headwinds and amidst fears of a recession. Some support also came after Agriculture Minister Narendra Singh Tomar expressed hope that monsoon rains, which are crucial for Kharif sowing, will progress in the coming days and said it is too early to comment on the paddy acreage.
Nifty futures opened at 16199.00 points against the previous close of 16068.30 and opened at a low of 16170.45 points. Nifty Future closed with an average movement of 349.55 points and a rise of around 244.65 points and 16312.95 points...!!
On the NSE, the midcap 100 index will rise 1.40% and smallcap 100 index is closing rise 1.59%. Speaking of various sectoral indices only Pharma and FMCG stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, August gold opened at Rs.50150, fell from a high of Rs.50620 points to a low of Rs.50150 with a rise of 313 points, a trend of around Rs.50420 and September Silver opened at Rs.56120, fell from a high of Rs.56320 points to a low of Rs.55866, with a rise of 383 points, a trend of around Rs.55970.
Meanwhile, SBI Research in its latest report has said that the income of farmers has grown in the range of 1.3-1.7 times in FY22 from the FY18 levels on average while grain exports soared to over USD 50 billion. For certain crops in some states (like soyabean in Maharashtra and cotton in Karnataka) farmers' income more than doubled in FY22 from FY18 levels.
The increase in the income of farmers engaged in cash crops has been more prominent compared to farmers growing non-cash crops. This also has led to an increase in the share of agriculture in the GDP to 18.8 per cent from 14.2 per cent, the report said. This rise was also due to the shrinkage of the industrial and services contribution to the economy due to the deadly second wave of the pandemic.
Further, the report, based on key farming states like Maharashtra, Rajasthan, MP, UP, Karnataka, and Gujarat among others, noted that allied/non-farm income showed a significant increase of 1.4-1.8 times in the majority of states in tandem with farm income during this period, substantiating the trend in the 77th National Sample Survey that said source of farmers income has become increasingly diverse apart from crops. Besides, the report also urges the government to launch a livelihood credit card by targeting at least 1 million farmers every year and an omnibus credit guarantee fund for Rs 5 lakh crore agri credit push.
Technically, the important key resistances are placed in Nifty future are at 16363 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 16393 – 16404 levels. Immediate support is placed at 16160 – 16060 levels.
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