Dear Trader…
Indian equity benchmarks snapped their 6-day winning run and ended lower by over half percent on Monday dragged by Auto, Energy and Telecom shares. Markets made a weak start and stayed in red for whole day, as traders got anxious with a private report that Indian rupee may further depreciate to 82 to a dollar in the near term due to widening of trade deficit and expected aggressive rate hike by the US Fed later this week to tame record high inflation.
However, key indices managed to trim some losses in late afternoon deals, taking support from Finance Minister Nirmala Sitharaman’s statement that the trust-based taxation system introduced by the government has resulted in improved collections and increase in the number of return filings.
Nifty futures opened at 16680.00 points against the previous close of 16722.60 and opened at a low of 16561.50 points. Nifty Future closed with an average movement of 143.50 points and a decline of around 102.60 points and 16620.00 points...!!
On the NSE, the midcap 100 index will decline 0.09% and smallcap 100 index is closing decline 0.58%. Speaking of various sectoral indices, the NSE saw gains in only Metal and IT stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, August gold opened at Rs.50673, fell from a high of Rs.50793 points to a low of Rs.50551 with a rise of 43 points, a trend of around Rs.50687 and July Silver opened at Rs. 54976, fell from a high of Rs.55180 points to a low of Rs.54702, with a decline of 231 points, a trend of around Rs.54900.
Meanwhile, The Department of Telecom (DoT) has floated a consultation paper on the revamp of telecom rules mainly to keep pace with the change in technology like 5G, simplify laws and promote investments. The new rules will not be applicable with retrospective effect to cause any adverse impact on the relevant entity.
According to the consultation paper, a new law on telecommunication needs to aim at establishing an enabling future-ready framework for the development of telecommunication sector and deployment of new technologies. Such a law needs to consolidate the existing laws governing telecommunication sector, while keeping in view global best practices. The government has proposed that the new framework should be drafted in a plain and simple language so that any citizen is able to understand the rules. The proposed law is envisaged to provide adequate provisions to ensure regulatory certainty and promote investment. This would mean continuity of licenses and authorizations under the old regime.
The paper further said to minimize policy disruption, such a law needs to provide for continuation of rules, guidelines, administrative orders issued under the existing regime until superseded by new rules. Furthermore, a new law needs to ensure that the terms and conditions will not be modified with retrospective effect to the detriment of the relevant entity. The proposal has come at a time when the country is gearing up to start a spectrum auction for rolling out 5G services.
Technically, the important key resistances are placed in Nifty future are at 16676 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 16707 – 16730 levels. Immediate support is placed at 16577 – 16505 levels.
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