Dear
Trader…
The markets remained lackluster for another session, closing
marginally in the green, extending Friday’s brief recovery. After an initial
uptick, the Nifty traded within a narrow range, eventually settling at
25,383.75 level. Sectoral trends were mixed, with energy and metals showing
decent gains, while FMCG and IT saw slight declines. Market breadth leaned
slightly positive, aided by selective buying interest in the midcap and
smallcap segments.
The ongoing time-wise correction in the index is seen as
healthy, and participants are encouraged to stick with a “buy on
dips” strategy. We continue to favor banking, financials, realty, metal,
and IT sectors. Traders should focus on identifying stronger stocks with
relative strength, accumulating them gradually during this phase.
Nifty futures opened at 25398 points against the previous
close of 25372 and opened at a low of 25367 points. Nifty Future closed with an
average movement of 120 points and a rise of around 70 points and 25442 points…!!
On the NSE, the midcap 100 index will rise 0.38% and small
cap 100 index is closing rise 0.16%. Speaking of various sectoral indices only FMCG,
Financial Services, IT, Pharma and PSU Bank 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.73600,
fell from a high of Rs.73753 points to a low of Rs.73370 with a rise of 10 points,
a trend of around Rs.73525 and December Silver opened at Rs.89893, fell from a
high of Rs.90400 points to a low of Rs.89390 with a rise of 727 points, a trend
of around Rs.89907.
Meanwhile, India’s
foreign exchange reserves extended their winning run for a fourth straight week
to hit a record high of $689.24 billion as of Sept. 6, data from the central
bank showed on Friday. The reserves rose by $5.3 billion in the reporting week,
after having risen by a total of $13.9 billion in the prior three weeks. The
RBI intervenes on both sides of the foreign exchange market to prevent undue
volatility in the rupee.
These
interventions, via state-run banks in the spot market, helped avert a steeper
decline in the local currency, which has hovered close to 84 per U.S. dollar in
recent sessions, traders said. In the week ending Sept. 6, the rupee fell 0.1%
against the dollar and traded in a thin band. The rupee settled at 83.8875 on
Friday, having strengthened nearly 0.1% week-on-week in its best weekly
performance since the week ended June 25.
Changes in
foreign currency assets are caused by the RBI’s intervention as well as the
appreciation or depreciation of foreign assets held in the reserves. Foreign
exchange reserves also include India’s reserve tranche position in
the International Monetary Fund.
Technically,
the important key resistances are placed in Nifty future are at 25474 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 25505 – 25570 levels. Immediate support is placed at 25303 –
25180 levels.
Past Performance is not an
Indicator of Future Returns. The
securities quoted are for illustration only and are not recommendatory. Investment
in securities market are subject to market risks. Read Disclaimer and related
all the documents carefully before investing, mentioned on www.nikhilbhatt.in
