Dear
Trader…
Bears were
holding a tight grip over the Dalal Street in today session, with both Sensex
and Nifty close near their intraday low points, impacted by negative cues from
other Asian markets. Domestic sentiments remained downbeat, amid a private
report stating that taking binding commitments on new issues like environment,
labour and sustainability in the proposed free trade agreements (FTA), being
negotiated by India, may hamper the country’s exports in the future. Traders
overlooked reports that bank credit rose 17 per cent year-on-year (YoY) to Rs 129.26
trillion as on November 4, reflecting robust offtake in the busy season.
Nifty
futures opened at 18396.00 points against the previous close of 18378.40 and
opened at a low of 18256.50 points. Nifty Future closed with an average
movement of 160.50 points and a decline of around 33.40 points and
18345.00 points…!!
On the NSE, the
midcap 100 index will decline 0.50% and smallcap 100 index is closing decline 0.52%.
Speaking of various sectoral indices only Speaking of various sectoral indices,
the NSE saw gains in only PSU Bank and Realty stocks, while all other sectoral
indices closed lower.
At the start
of intra-day trading, December gold opened at Rs.52843, fell from a high of Rs.52990
points to a low of Rs.52834 with a rise of 58 points, a trend of around Rs.52901
and December Silver opened at Rs.61262, fell from a high of Rs.61588 points to
a low of Rs.61141, with a rise of 319 points, a trend of around Rs.61297.
Meanwhile, in a relief to exporters,
the commerce ministry has directed the field formations to reduce average
export obligations for sectors that have registered more than 5 per cent
decline in shipments during 2021-22. A total of 192 product groups registered a
decline of more than 5 per cent in exports in 2021-22 compared to 2020-21 and
that includes certain ores, gold, yarn, ground nut oil and cheese and curd.
The Directorate General of Foreign
Trade (DGFT) in a public notice said that the sector/product group that
witnessed such decline in 2021-22 as compared to 2020-21 would be entitled for
such relief. The DGFT asked its regional offices to re-fix the annual average
export obligation for the Export Promotion Capital Goods (EPCG) authorisation
for 2021-22 accordingly.
Under the EPCG scheme, imports of
capital goods are allowed duty free, subject to an export obligation. The
authorisation holder (or exporter) under the scheme has to export finished
goods worth six times of the actual duty saved in value terms in six years. The
objective of the Export Promotion Capital Goods (EPCG) scheme is to facilitate
import of capital goods for producing quality goods and services and enhance
India’s manufacturing competitiveness.
Foreign trade policy (2015-20) was
extended till March 31 next year envisages that to provide relief to exporters
of those sectors where total exports in that sector/product group has declined
by more than 5 per cent as compared to the previous year, the average export
obligation for the year may be reduced proportionate to reduction in exports of
that particular sector/product group during the relevant year s against the
preceding year.
Technically, the important key resistances are placed in Nifty future are at 18404 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 18474 – 18505 levels. Immediate support is placed at 18189 – 18088 levels.
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