Dear
Trader…
Indian
equity benchmarks extended up move for yet another session and gained over half
a percent on Wednesday. Sensex past the psychological 60,000-mark and Nifty
inched towards 18000 level on the back of softening inflation and strong FII
buying in the current month. After the flat start, the benchmarks gradually
inched higher as the day progressed, as traders took some encouragement as
State Bank of India’s (SBI) Chairman Dinesh Khara said that things might get
better on the inflation front towards the end of September. He said the supply
side constraints getting addressed and crude oil prices trending low will help
ease the situation.
Domestic
sentiments remained optimistic in late afternoon deals, amid a private report
stating that companies in India are expected to give a salary hike of 10 per cent
in 2023 as they struggle with rising attrition in the tight labour market.
Meanwhile, another private report stated that the Goods and Services Tax (GST)
Council may make rate changes in some services or products and withdraw some
exemptions in a bid to correct instances of inverted duty.
Nifty
futures opened at 17936.15 points against the previous close of 17974.10 and
opened at a low of 17858.85 points. Nifty Future closed with an average
movement of 145.85 points and a rise of around 26.85 points and 18000.95 points…!!
On the NSE, the
midcap 100 index will rise 0.19% and smallcap 100 index is closing rise 0.16%. Speaking
of various sectoral indices IT, Auto, Pharma, PSU Bank and Media 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.51644, fell from a high of Rs.51849
points to a low of Rs.51600 with a rise of 289 points, a trend of around Rs.51832
and September Silver opened at Rs.56655, fell from a high of Rs.57268 points to
a low of Rs.56551, with a rise of 295 points, a trend of around Rs.57210.
Meanwhile,
Moody’s Analytics in its recent report on the Asia Pacific (APAC) region has
stated that global oil prices are likely to fall to almost $70 per barrel by
the end of 2024. Indicating the increase in oil prices to $120/barrel in June
after Russia’s invasion of Ukraine and its fall to $100/barrel in August it
said ‘this trend will continue; we expect crude prices to fall to almost $70 a
barrel by the end of next year’. It noted that ‘for the APAC region’s big oil
importers, notably Singapore and Hong Kong, this will ease pinching price
pressures’. According to Moody’s Analytics, the impact of oil price increase
has been varied for the APAC region.
As per the
report, ‘for net energy importers such as Thailand, Japan, South Korea and
Singapore, household energy bills have risen sharply. But for the region’s key
energy exporters, Indonesia, Malaysia and Australia, households have been more
sheltered’. But coal and natural gas prices remain stubbornly high. The APAC
region’s big liquified natural gas (LNG) importers, including Japan, South
Korea, Taiwan and China, are particularly vulnerable to sticky prices.
Likewise, with coal prices elevated, big importers, including India, Pakistan
and Vietnam, are paying more for what they need.
Technically, the important key resistances are placed in Nifty future are at 18088 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 18108 – 18188 levels. Immediate support is placed at 17888 – 17808 levels.
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