Dear Trader…
Indian equity benchmarks ended higher with gains of more than half percent on Thursday buoyed by intense buying in IT, financial and banking stocks amid a firm trend in global markets. Key gauges made gap-up opening and stayed in green for whole day, as traders took encouragement with a private report that India is likely to be the fastest-growing Asian economy in 2022-23. The report expects India’s gross domestic product growth to average 7 per cent during this period - the strongest among the largest economies - and contributing 28 per cent and 22 per cent to Asian and global growth, respectively.
Traders remained optimistic in late afternoon deals, taking support from Reserve Bank of India (RBI) in its latest data has showed that bank credit rose 14.52 per cent to Rs 123.69 lakh crore and deposits increased 9.14 per cent to Rs 169.72 lakh crore in the fortnight ended July 29. Traders took note of report that the Centre has released two instalments of tax devolution totalling Rs 1.16 lakh crore to states. Meanwhile, India will start supplying petrol with 20 per cent ethanol at select petrol pumps from April next year and will ramp up supplies thereafter as it looks to cut oil import dependence and address environmental issues.
Nifty futures opened at 17711.00 points against the previous close of 17558.25 and opened at a low of 17657.50 points. Nifty Future closed with an average movement of 78.65 points and a rise of around 117.75 points and 17676.00 points...!!
On the NSE, the midcap 100 index will rise 0.87% and smallcap 100 index is closing rise 0.87%. Speaking of various sectoral indices only Media, FMCG, Auto and Metal stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, October gold opened at Rs.52144, fell from a high of Rs.52477 points to a low of Rs.52014 with a rise of 226 points, a trend of around Rs.52467 and September Silver opened at Rs.59437, fell from a high of Rs.59040 points to a low of Rs.58437, with a rise of 41 points, a trend of around Rs.59001.
Meanwhile, Credit rating agency Crisil in its latest report has said that elevated inflation will cap the operating margin of apparel retailers to below the pre-pandemic level, even though they are on course to stitch a 21-23 percent revenue growth this fiscal (FY23). It also said strong same-store sales, new store launches, and higher contribution from online channels will sew a 21-23 percent revenue growth for apparel retailers this fiscal, or 500 percentage points over the pre-pandemic (fiscal 2020) levels, despite elevated inflation impacting discretionary demand.
The agency expects large apparel retailers to grow faster at 25-30 percent this fiscal, compared with 10-15 percent by small and mid-sized players. However, it said though operating margins will improve by 175-200 bps to 7.75-8 percent boosted by an increase in scale leading to better fixed-cost absorption, price hikes, and a greater share of private labels, higher input prices will cap margin by 50-70 bps below fiscal 2020 level. Among the key inputs, domestic cotton prices almost doubled between April 2020 and May 2022. Despite some moderation since June 2022, the prices are expected to remain elevated.
Technically, the important key resistances are placed in Nifty future are at 17707 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 17737 – 17808 levels. Immediate support is placed at 17606 – 17474 levels.
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