Dear Trader…
A heavy selling dragged Indian equity markets in red on Monday, with both Sensex and Nifty closing lower by over 1%. After a weak start, markets remained negative for the entire day, as weak economic data dampened the sentiments in the markets. The government data showed that the output of eight core infrastructure sectors grew 3.3 per cent in August -- the lowest in nine months -- as against 12.2 per cent in the year-ago period. More pessimism came as foreign investors turned sellers again in September and pulled out over Rs 7,600 crore from the Indian equity markets amid hawkish stance by the US Fed and sharp depreciation in rupee.
However, some recovery witnessed over the Dalal Street in late morning deals, as the gross Goods and Services Tax (GST) collections surged 26% in the month of September 2022 at Rs 1,47,686 crore over the same month last year. Out of total, CGST is Rs 25,271 crore, SGST is Rs 31,813 crore, IGST is Rs 80,464 crore (including Rs 41,215 crore collected on import of goods) and Cess is Rs 10,137 crore (including Rs 856 crore collected on import of goods).
Nifty futures opened at 17021.00 points against the previous close of 17103.20 and opened at a low of 16858.00 points. Nifty Future closed with an average movement of 247.00 points and a decline of around 214.95 points and 16888.25 points...!!
On the NSE, the midcap 100 index will decline 1.25% and smallcap 100 index is closing decline 0.66%. Speaking of various sectoral indices, the NSE saw gains in only Pharma stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, October gold opened at Rs.50250, fell from a high of Rs.50250 points to a low of Rs.50130 with a rise of 36 points, a trend of around Rs.50130 and December Silver opened at Rs.57162, fell from a high of Rs.58100 points to a low of Rs.55280, with a rise of 1115 points, a trend of around Rs.57973.
Meanwhile, Indian manufacturing activity growth eased further in the month of September, but it remains above the boom-or-bust line of 50 that separates expansion from contraction, as companies stepped up production in tandem with a sustained increase in new work intakes. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) fell to 55.1 in September from 56.2 in August.
The report further noted that factory orders continued to increase at the end of the second fiscal quarter, stretching the current sequence of expansion to 15 months. Despite easing to the weakest since June, the rate of growth was sharp. Besides, new export orders rose further in September. The increase was marked, the sixth in consecutive months and the fastest since May.
On the inflation front, goods producers enjoyed a weaker inflationary environment in September, as input costs rose at the slowest pace since October 2020. While around 8% of companies reported higher purchasing prices, 91% signalled no change. This retreat in cost inflationary pressures helped curtail the latest upturn in selling prices, which was modest and the slowest in seven months.
Technically, the important key resistances are placed in Nifty future are at 16919 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 16979 – 17007 levels. Immediate support is placed at 16808 – 16676 levels.
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