Dear Trader…
Weak trade continued over the Dalal Street in today session, with both Sensex and Nifty close in red, impacted by negative cues from other Asian markets. Traders got cautious, after an IMF official said that the Asia Pacific region is facing three main risks, including due to global financial tightening and a slowdown in China. Shanaka Jayanath Peiris, Division Chief of Regional Studies Division, Asia Pacific Department at the IMF, also said that currencies in the region have depreciated sharply while public debt ratios have increased.
Traders failed to take any sense of relief with reports that India’s services sector growth improved in the month of October, recovering some of the growth momentum lost in September, as favourable demand for services continued to underpin increases in new business and output. The seasonally adjusted S&P Global India Services PMI Business Activity Index surged to 55.1 in October from 54.3 in September. Further, the S&P Global India Composite PMI Output Index -- which measures both manufacturing and services -- improved to 55.5 in October from 55.1 in September.
Nifty futures opened at 18046.90 points against the previous close of 18146.75 and opened at a low of 18008.00 points. Nifty Future closed with an average movement of 150.85 points and a decline of around 25.75 points and 18121.00 points...!!
On the NSE, the midcap 100 index will rise 0.34% and smallcap 100 index is closing rise 0.24%. Speaking of various sectoral indices only IT, Consumer Durables, Auto and Metal 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.50500, fell from a high of Rs.50500 points to a low of Rs.50000 with a decline of 552 points, a trend of around Rs.50054 and December Silver opened at Rs.58441, fell from a high of Rs.58441 points to a low of Rs.57049, with a decline of 1690 points, a trend of around Rs.57100.
Meanwhile, India’s services sector growth improved in the month of October, recovering some of the growth momentum lost in September, as favourable demand for services continued to underpin increases in new business and output. The seasonally adjusted S&P Global India Services PMI Business Activity Index surged to 55.1 in October from 54.3 in September. Further, the S&P Global India Composite PMI Output Index -- which measures both manufacturing and services -- improved to 55.5 in October from 55.1 in September.
The report further noted that the domestic market was the main source of new business gains, as foreign sales decreased further at the start of the third fiscal quarter. Monthly deteriorations in international demand have been registered since the onset of COVID-19 in March 2020. However, Indian services companies reported greater operating expenses in October, stretching the current sequence of inflation to 28 months. The latest increase was the most pronounced since July and historically marked.
Technically, the important key resistances are placed in Nifty future are at 18188 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 18202 – 18272 levels. Immediate support is placed at 18008 – 17939 levels.
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