Dear
Trader…
Markets started the week on a feeble note and lost nearly
half a percent, tracking weak global cues. After the gap-down start, Nifty
traded under pressure in the first hour however resilience in select
heavyweights capped the decline as the session progressed. Eventually, it settled around 19488.00; down
by 0.26%. Meanwhile, a mixed trend across the key sectors kept the traders
occupied, wherein energy and metal closed higher while IT, FMCG and pharma were
among the top losers. Amid all, the broader indices maintained their
outperformance as the smallcap index gained over half a percent.
We are largely mirroring the US markets on the benchmark
front however there is no shortage of stock-specific trading opportunities,
thanks to prevailing outperformance of the broader indices and rotational
buying across the sectors. We thus reiterate our view to focus more on stock
selection and prefer long trades until the Nifty future breaks 19,303 point.
Investors would react to India’s inflation data on Wednesday
as India’s CPI data is due today while WPI data is due tomorrow. In this
truncated trading week, we expect market to consolidate in a broader range due
to lack of major events and Q2 earning season coming to an end.
Nifty futures
opened at 19521.15 points against the previous close of 19538.10 and opened at
a low of 19469.65 points. Nifty Future closed with an average movement of 65.45
points and a decline of around 50.10 points and 19488.00 points…!!
On the NSE,
the midcap 100 index will rise 0.07% and smallcap 100 index is closing rise 0.68%.
Speaking of various sectoral indices, the NSE saw gains in PSU Bank and Metal stocks,
while all other sectoral indices closed lower.
At the start
of intra-day trading, December gold opened at Rs.59699, fell from a high of Rs.59772
points to a low of Rs.59559 with a decline of 73 points, a trend of around Rs.59679
and December Silver opened at Rs.69500, fell from a high of Rs.70050 points to
a low of Rs.69192.00 with a decline of 522 points, a trend of around Rs.69510.
Meanwhile, India’s
retail inflation eased in October on lower food prices, edging closer to the
central bank’s medium term target of 4%, which it has said would need to be
firmly in sight before it can start lowering rates. Annual retail inflation
fell 4.87% in October, down from 5.02% the previous month. A Reuters poll of 53
economists had forecast a rate of 4.80%.
Food
inflation, which accounts for nearly half of the overall consumer price basket,
rose 6.61% in October as compared with 6.56% in September. October inflation
was below the Reserve Bank of India’s (RBI) upper tolerance band of 2-6% for a
second consecutive month but the central bank last month kept its key lending
rate steady for a fourth consecutive policy meeting and said it remains focused
on bringing inflation close to the target of 4%.
Technically, the important key resistances are placed in Nifty future are at 19505 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 19533 – 19575 levels. Immediate support is placed at 19404 – 19373 levels.
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