Dear Trader…
Indian markets pulled back from record highs to close little changed on Friday as gains in metal and pharmaceutical stocks were offset by a profit-taking spree in the IT sector. Traders overlooked a private report stating that the June inflation data showed annual retail price growth steady at 6.26 percent versus 6.3 percent in May. This takes off pressures upon the central bank, which was battling apprehensions of higher inflation risks soon after its June 4 review. Also, downfall remain capped as bank credit grew by 6 per cent to Rs 109.31 lakh crore and deposits increased by 9.76 per cent to Rs 154.51 lakh crore in the fortnight ended July 2, 2021, RBI data showed.
Nifty futures opened at 15937.30 points against the previous close of 15911.10 and opened at a low of 15890.00 points. Nifty Future closed with an average movement of 80.00 points and a rise of around 1.45 points and 15938.75 points .. !!
On the NSE, the midcap 100 index will rise 0.35% and smallcap 100 index is closing rise 1.10%. Speaking of various sectoral indices, the NSE saw gains in Pharma, Realty, Metal, FMCG and Auto stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, august gold opened at Rs.48378, fell from a high of Rs.48389 points to a low of Rs.48113, with a decline of 279 points, a trend of around Rs.48121 and September Silver opened at Rs.69906, fell from a high of Rs.69931 points to a low of Rs.69005, with a decline of 639 points, a trend of around Rs.69042..!!
Meanwhile, rating agency Crisil in its latest report said the Reserve Bank of India's (RBI) insistence on companies opening current accounts with banks is among the factors that has helped large lenders such as HDFC Bank, ICICI Bank and SBI raise their shares of the competitive corporate banking market in 2020. It stated apart from the RBI rules, the government's mega merger to reduce the number of state-owned banks has also helped in the trend.
In mid-2020, the RBI had come up with the circular that specified which bank can open a current account for a borrower, in order to check any misuse through multiple current accounts. Report mentioned several trends have contributed to the pick-up in market penetration among the leading banks, including the 'mega merger' of the country's public sector banks and the Reserve Bank of India's 'circular on current accounts', which essentially rules that banks can only open current accounts for companies to whom they are also major credit providers.
Besides, it said that even before the start of the global pandemic, India's corporate banking market was on a consolidation path, driven by decisive steps by regulators to solidify the country's banking sector, and the rapid evolution and growth of the leading private banks.
Technically, the important key resistances are placed in Nifty future are at 15989 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 16006 – 16088 levels. Immediate support is placed at 15888 – 15808 levels.
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