Dear
Trader…
In a
volatile session, Indian Benchmark indices erased most of the gains towards the
end but still ended higher on Thursday, with investors eyeing quarterly updates
from companies ahead of corporate earnings season. Benchmarks made positive
start and added gains in morning deals with strong foreign flows. As per
provisional data available on the NSE, foreign institutional investors (FIIs)
remained net buyers to the tune of Rs 1,344.63 crore on October 4. Some support
came in as the IMF said recent tightening actions by many central banks around
the world will help to prevent high inflation from becoming entrenched.
However, key
gauges pared most of their gains in late afternoon session, as some concern
came with private survey showed that growth in India’s services industry slumped
in September to a six-month low, led by a substantial easing in demand amid
high inflation. The S&P Global India services Purchasing Managers’ Index
fell to 54.3 in September from August’s 57.2, much lower than the Reuters poll
expectation for a gentle drop to 57.0. Despite staying above the 50-mark
separating growth from contraction for the fourteenth straight month – the
longest stretch of expansion since October 2016 – the index fell to its lowest
since March.
Nifty
futures opened at 17421.20 points against the previous close of 17293.00 and
opened at a low of 17313.00 points. Nifty Future closed with an average
movement of 131.00 points and a rise of around 20.00 points and 17313.00 points…!!
On the NSE, the
midcap 100 index will rise 1.26% and smallcap 100 index is closing rise 1.24%. Speaking
of various sectoral indices, FMCG and Pharma saw 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.51836, fell from a high of Rs.52093
points to a low of Rs.51790 with a rise of 333 points, a trend of around Rs.51979
and December Silver opened at Rs.61100, fell from a high of Rs.61675 points to
a low of Rs.60836, with a rise of 433 points, a trend of around Rs.61200.
Meanwhile,
the International Monetary Fund (IMF) has said that recent tightening actions
by many central banks around the world will help to prevent high inflation from
becoming entrenched. It said the current coincidence of rising inflation and
nominal wage growth has led to concerns that a wage-price spiral-in which both
wages and prices accelerate for a prolonged period-could emerge.
It further
said many economies have seen sharp rises in price inflation since 2021 as
adverse supply shocks buffet the global economy and labour markets appear tight
in the wake of the acute COVID-19 shock. These inflation rises have raised
concerns among some observers that prices and wages could start feeding off
each other and accelerate, leading to a wage-price spiral dynamic.
John
Bluedorn, Deputy Division Chief on the World Economic Outlook in the IMF’s
Research Department, said if inflationary shocks start to come from the labour
market itself- such as an unexpected, sharp uptick in wage indexation-that
could moderate the effects of falling real wages, pushing up both wage growth
and inflation for longer.
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 17288 – 17202 levels.
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