Dear Trader…
Indian equity benchmarks managed to keep their head above water in noon deals with both Sensex and Nifty were trading above 59300 and 17650 marks, respectively. Traders took some solace as Reserve Bank Governor Shaktikanta Das said despite the latest headwinds arising from the Jackson Hole summit leading to extreme volatility, the country’s banking system and financial markets are strong enough to withstand such pressures. Some support also came as Commerce and Industry Minister Piyush Goyal highlighted India's stable economic conditions during COVID-19 pandemic and said that the country has emerged as the trusted partner of the world.
However, upside remain capped as Finance Ministry in its report on ‘India's external debt’ has said that India's external debt rose by 8.2 per cent year-on-year to USD 620.7 billion as of March 2022. It stated while 53.2 per cent of it was denominated in the US dollar, Indian rupee-denominated debt, estimated at 31.2 per cent, was the second largest.
Nifty futures opened at 17730.00 points against the previous close of 17710.00 and opened at a low of 17600.00 points. Nifty Future closed with an average movement of 188.55 points and a decline of around 26.05 points and 17683.95 points...!!
On the NSE, the midcap 100 index will decline 0.58% and smallcap 100 index is closing decline 0.29%. Speaking of various sectoral indices, the NSE saw gains in Metal, PSU Bank, Realty and Pharma while all other sectoral indices closed lower.
At the start of intra-day trading, October gold opened at Rs.50555, fell from a high of Rs.50693 points to a low of Rs.50421 with a rise of 51 points, a trend of around Rs.50484 and December Silver opened at Rs.53800, fell from a high of Rs.54156 points to a low of Rs.53663, with a rise of 488 points, a trend of around Rs.53878.
Meanwhile, Highlighting India's stable economic conditions during COVID-19 pandemic, Commerce and Industry Minister Piyush Goyal has said that the country has emerged as the trusted partner of the world. He said, today with the kind of structural reforms that happened in India, the island of stability that India offers, amidst the global disturbances, India is holding strong, growth is continuing to be amongst the highest in the large economies, inflation relatively being less than other parts of the world, particularly the developed countries.
Goyal stated that with a stable environment, India has become probably one of the world's most attractive investment destinations. The trusted partner in the works and it is evident in the way world leaders and developed countries are making every effort to expand their engagement with India -- looking for bilateral agreements, to expand trade with India investments into India. Inflation in India is at about 6-7 per cent. Consumer Price Index (CPI) is up by about 6.7 per cent by the last account. This is lower than what it used to be 10 years ago. Post-2014, India has focused on inflation, the Reserve Bank of India (RBI) and the central government entered into a formal agreement mandating the RBI to maintain inflation as a primary focus of its activities. Since 2014, India has seen inflation at an average of about four and a half per cent, probably the lowest since independence.
He further said ‘we have had a small bump in the last few months and we are all very conscious of the background to it. Post-COVID, coupled with the conflict between Ukraine and Russia, there is an increase in inflation across the world. Even in the developed countries, the inflation is now at 10 or 11 per cent as compared to India, which ranges between 6 -7 per cent’.
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 17770 – 17808 levels. Immediate support is placed at 17570 – 17474 levels.
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