Dear Trader…
In a volatile trading session, Indian equity benchmarks ended marginally lower on Wednesday, dragged by losses in Utilities, Power, Banking and Finance stocks amid weak cues from global markets. Markets made slightly positive start but soon turned negative.
Traders were encouraged with steadily declining fresh Covid cases and fast-rising vaccinations, which will facilitate the further easing of restrictions and rebound in economic activity. In another positive development, Finance Minister Nirmala Sitharaman urged ministries to go above and beyond their capital expenditure (capex) commitments for this fiscal year, emphasizing that increased spending will be important in reviving the economy following the pandemic.
Nifty futures opened at 15816.05 points against the previous close of 15785.60 and opened at a low of 15737.05 points. Nifty Future closed with an average movement of 139.15 points and a decline of around 38.60 points and 15747.00 points .. !!!
On the NSE, the midcap 100 index will rise 0.26% and smallcap 100 index is closing rise 0.22%. Speaking of various sectoral indices, the NSE saw gains in IT stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, august gold opened at Rs.46594, fell from a high of Rs.46744 points to a low of Rs.46461, with a rise of 10 points, a trend of around Rs.46565 and July Silver opened at Rs.67277, fell from a high of Rs.67550 points to a low of Rs.67277, with a rise of 291 points, a trend of around Rs.67523..!!
Meanwhile, RBI in its latest data has showed that credit growth to the industrial sector remained in the negative territory during 2020-21, mainly due to the COVID-19 pandemic and resultant lockdowns. It said personal loans continued to grow at robust pace and recorded 13.5 per cent growth (Y-o-Y) in March 2021; industrial loan growth, on the other hand, remained negative during all quarters of 2020-21.
The central bank said working capital loans in the form of cash credit, overdraft and demand loans, which accounted for a third of total credit, contracted during 2020-21, indicating the impact of the coronavirus pandemic. The data further revealed that private sector banks recorded higher loan growth when compared to public sector lenders. Their share in total credit increased to 36.5 per cent in March 2021 from 35.4 per cent a year ago and 24.8 per cent five years ago.
RBI said the weighted average lending rate (WALR) on outstanding credit has moderated by 91 basis points during 2020-21, including a decline of 21 basis points in Q4. It also said bank branches in urban, semi-urban and rural areas recorded double-digit credit growth (Y-o-Y) in March 2021, whereas metropolitan branches, which accounted for 63 per cent of bank credit, logged 1.4 per cent growth.
Technically, the important key resistances are placed in Nifty future are at 15747 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 15808 – 15838 levels. Immediate support is placed at 15727 – 15707 levels.
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