Dear Trader
Markets
staged a recovery on the weekly expiry day and gained over half a percent. After the initial gap-up start, Nifty Future
hovered in a narrow band till the end and finally settled at 19565.00
levels. Meanwhile, a mixed trend on the
sectoral front kept the traders busy wherein auto and IT posted decent bounce.
The market breadth also ended on the advancing side, thanks to an uptick in the
smallcap index.
At
present, select IT majors are at the forefront while others are playing
supportive roles on a rotational basis. We need improvement in the broader
participation to change the market course.
Amid all, it is prudent to keep a check on leveraged positions and
prefer index majors over others.
Nifty
futures opened at 19535.00 points against the previous close of 19469.25 and
opened at a low of 19514.50 points. Nifty Future closed with an average
movement of 101.95 points and a rise of around 95.75 points and 19565.00
points…!!
On the NSE, the midcap 100 index will decline
0.01% and small cap 100 index is closing rise 0.63%. Speaking of various sectoral
indices only PSU Bank, Healthcare, Pharma, Metal and FMCG stocks were seen
selling on the NSE, while all other sectoral indices closed higher.
At
the start of intra-day trading, December gold opened at Rs.56825, fell from a
high of Rs.56900 points to a low of Rs.56680 with a rise of 10 points, a trend
of around Rs.56731 and December Silver opened at Rs.67450, fell from a high of
Rs.67605 points to a low of Rs.67088, with a rise of 355 points, a trend of
around Rs.67240.
Meanwhile,
India’s services sector growth strengthened in the month of September, as a
positive demand environment boosted intakes of new business and output volumes.
As per the survey report, the seasonally adjusted S&P Global India Services
PMI Business Activity Index rose at 61.0 in September from 60.1 in August.
Further, the S&P Global India Composite PMI Output Index — which measures
both manufacturing and services — surged to 61.0 in September as against 60.9
in August.
The
latest data showed a substantial increase in new business placed with Indian
service providers, one that was the second-fastest since June 2010. Besides the
rise in total sales, there was an upturn in demand from abroad, particularly
from clients based in Asia, Europe and North America. The overall rate of growth
was marked and one of the quickest seen in the series history (since September
2014), despite slowing to a three-month low.
On
the price front, input cost inflation retreated substantially in September. The
rate of increase was equal to its long-run average and one of the weakest since
late-2010. Some firms opted to pass on to their clients additional cost
increases by raising selling prices. Meanwhile, confidence in the outlook
improved, with survey members forecasting healthy market dynamics and buoyant demand
for the year ahead. The level of positive sentiment was at its highest for over
nine years.
Technically, the important key resistances are placed in Nifty future are at 19606 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 19636 – 19676 levels. Immediate support is placed at 19505 – 19474 levels.
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