Dear Trader…
Indian equity benchmarks remained under pressure in today session, impacted by heavy selling at Banking and Consumer discretionary counters along with mixed cues from other Asian markets. Domestic sentiments remained pessimistic, amid reports that with the price situation remaining at 'unacceptably and uncomfortably' high level, members of the RBI's Monetary Policy Committee underlined the need for preventing upward drift of inflation and bringing it down to the target band, as per minutes of its recent policy meeting.
The street paid no heed towards a report stating that labour ministry has said that retirement fund body -- Employee Provident Fund Organization (EPFO) added 18.36 lakh new subscribers in June 2022, registering 43 per cent rise as compared to the year-ago period. EPFO had added 12.83 lakh net new subscribers in June 2021.
Nifty futures opened at 17688.00 points against the previous close of 17759.50 and opened at a low of 17471.10 points. Nifty Future closed with an average movement of 218.80 points and a decline of around 260.50 points and 17499.00 points...!!
On the NSE, the midcap 100 index will decline 2.02% and smallcap 100 index is closing decline 1.63%. Speaking of various sectoral indices, Metal, Realty, PSU Bank, Auto and financial services stocks saw heavy selling on the NSE, while all other sectoral indices also closed lower.
At the start of intra-day trading, October gold opened at Rs.51409, fell from a high of Rs.51409 points to a low of Rs.51030 with a decline of 432 points, a trend of around Rs.51047 and September Silver opened at Rs.55237, fell from a high of Rs.55428 points to a low of Rs.54652, with a decline of 813 points, a trend of around Rs.54683.
Meanwhile, CRISIL Ratings in its latest report has said that the digital lending norms announced by the Reserve Bank of India (RBI) on August 10, 2022, aim to usher in orderly growth and financial stability, check malpractices, strengthen transparency, and protect customer interests. However, it said they would raise operational intensity and compliance costs for lenders in the near term. It said that is because digital lenders have built their entire customer journey via technology-enabled means, including credit underwriting using alternative data sources and artificial intelligence.
According to the report, some of the rules that kick in with immediate effect will have a major impact on the way non-banking financial companies (NBFCs) have been operating in this space. The regulations on direct transfer of disbursements/repayments between borrowers and lenders will impact the 'buy now, pay later' services and prepaid instruments being offered. Business models will have to be tweaked to conform with the new regulations. Another important change is the restriction imposed on scrubbing/reading the smartphones of borrowers. This was a typical part of the underwriting regimen for digital consumer loans, and it will have to be rejigged now.
Technically, the important key resistances are placed in Nifty future are at 17575 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 17606 – 17676 levels. Immediate support is placed at 17373 – 17303 levels.
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