Dear Trader…
In volatile trading session, Indian equity benchmarks erased initial losses and ended in green terrain on Wednesday, amid continuous foreign fund inflows and a largely positive trend in global markets. Markets made a cautious start and traded lower for most part of the day, as traders got anxious with data showing that India’s trade deficit widened to a record $31 billion in July with a sequential decline in exports and somewhat flat imports owing to growing recessionary trends in developed economies and elevated commodity prices. Some concerns also came after minister of state for finance Bhagwat K Karad said that the government is not planning to introduce any bill to make amendments to facilitate the privatisation of public sector banks in the ongoing monsoon session.
However, markets trimmed all of their losses to end higher as exchange data showed foreign institutional investors (FIIs) remained net buyers in the capital markets as they bought shares worth Rs 825.18 crore on Tuesday. Some support also came with Centre for Monitoring Indian Economy (CMIE) data showing that the country's unemployment rate fell from 7.80 per cent in June to 6.80 per cent in July, the lowest level in the last six months, amid rising agriculture activities during monsoon.
Nifty futures opened at 17360.00 points against the previous close of 17346.30 and opened at a low of 17243.85 points. Nifty Future closed with an average movement of 182.15 points and a rise of around 77.70 points and 17424.00 points...!!
On the NSE, the midcap 100 index will decline 0.70% and smallcap 100 index is closing decline 0.48%. Speaking of various sectoral indices, the NSE saw gains in only IT and financial service stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, August gold opened at Rs.51300, fell from a high of Rs.51450 points to a low of Rs.51171 with a rise of 140 points, a trend of around Rs.51450 and September Silver opened at Rs.58032, fell from a high of Rs.58240 points to a low of Rs.57936, with a decline of 186 points, a trend of around Rs.58184.
Meanwhile, the Centre for Monitoring Indian Economy (CMIE) in its latest data has showed that the country's unemployment rate fell from 7.80 per cent in June to 6.80 per cent in July, the lowest level in the last six months, amid rising agriculture activities during monsoon. Rural unemployment declined 6.14 per cent to 272.1 million last month from 265.2 million or 8.03 per cent in June. On the other hand, urban unemployment jumped to 8.21 per cent in July from 7.80 per cent in June as the number of jobs fell both in industry as well as services. The employment in urban India fell by 0.6 million, from 125.7 million to 125.1 million.
CMIE Managing Director and CEO Mahesh Vyas said the month-on-month recovery in employment was partial as the fall in June was 13 million compared to the growth of only 6.3 million jobs in July. The recovery was mainly in rural areas and in particular in agriculture as the southwest monsoon progressed and kharif sowing activities picked up pace. Vyas added the agriculture sector in the rural area absorbed an additional 9.4 million workforce in July, while it shed 8 million in June. This lower-than-expected absorption of labour into agriculture in July reflects the patchy progress of the southwest monsoon and the correspondingly poor kharif sowing this year.
Technically, the important key resistances are placed in Nifty future are at 17474 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 17505 – 17533 levels. Immediate support is placed at 17303 – 17232 levels.
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