Dear Trader…
Negative global cues and FIIs turning heavy sellers, impacted investor’s sentiments on the last day of the week. US Fed’s aggressive stance has increased recessionary fears on global front and created nervousness on domestic markets as well. Nifty was showing signs of weakness from its opening and broke its crucial support of 17,400 levels. India VIX rose sharply by 9.2% to 20.5 levels, indicating that volatility may remain high going forward.
India would continue to take cues from global front as well as upcoming RBI meeting which is also expected to hike interest rates in line with US Federal Reserve. Nifty opened gap down and witnessed another day of intense selling to close near day’s low. All sectorial indices, including broader market under performed with Realty, PSU Bank down by more than 3%.
Nifty futures opened at 17587.95 points against the previous close of 17647.60 and opened at a low of 17291.15 points. Nifty Future closed with an average movement of 347.15 points and a decline of around 312.45 points and 17335.15 points...!!
On the NSE, the midcap 100 index will decline 2.35% and smallcap 100 index is closing decline 2.04%. Speaking of various sectoral indices, PSU Bank, Media, Realty, Bank and PVT Bank 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.50005, fell from a high of Rs.50057 points to a low of Rs.49250 with a decline of 594 points, a trend of around Rs.49406 and December Silver opened at Rs.58050, fell from a high of Rs.58250 points to a low of Rs.56286, with a decline of 1489 points, a trend of around Rs.56538.
Meanwhile, Union Coal and Mines Minister Prahlad Joshi has said that the government is aiming at more explorations for underground mineral deposits to augment the non-petroleum and iron ore sectors' contribution to GDP within a decade. He also said a total 430 blocks at the G2, G3 and G4 levels have been explored across the country and the reports about the exploration have been handed over to states concerned.
The minister said ‘the contribution of the mining sector to GDP is less than one per cent and I am talking about minerals other than petroleum products and (iron) ore. As envisioned by Prime Minister Narendra Modi we have to take it (contribution) to at least 2.5 per cent by 2030. I told the GSI to expedite its exploration projects.’ He also said in early 2021 the prime minister had directed to bring some major reforms in the mining sector and ensure that every stakeholder was informed about the changes.
He further said ‘within 16-17 months (of the PM's direction), 100 blocks have already been auctioned after being delineated by GSI.’ Talking about the ambitious Deocha Pachami coal block project of the West Bengal government, he said ‘If there is any issue, let them (the state) come to us (mining department). We are willing to play our part to settle the issues’.
Technically, the important key resistances are placed in Nifty future are at 17404 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 17474 – 17606 levels. Immediate support is placed at 17272 – 17170 levels.
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