Dear Trader…
Indian equity benchmarks staged strong recovery from intraday low levels to close on a flat note on Wednesday. The benchmarks fell soon after opening higher, as traders turned cautious with Trade Promotion Council of India (TPCI) stating that increasing container freights would push the overall cost of domestic goods in the international markets, which would make it less competitive and hurt the country’s merchandise exports. Selling further crept in as Rating agency Moody's said that the asset quality risks for banks will rise in most parts of ASEAN and India, as the region battles new waves of coronavirus infections amid low vaccination rates.
However, buying interest in metal, power and energy stocks helped benchmarks recover from intraday low levels. Market participants also took note of the finance ministry’s latest Monthly Economic Review stated that the economic impact of the second wave of the COVID-19 pandemic is likely to be muted and there are visible signs of economic rejuvenation. It also said the recent sero-prevalence results signify that India can reduce the likelihood of severe illness due to COVID-19 if the country sustains the momentum of the vaccination programme.
Nifty futures opened at 16308.00 points against the previous close of 16276.95 and opened at a low of 16185.65 points. Nifty Future closed with an average movement of 139.30 points and a rise of around 4.65 points and 16281.60 points...!!!
On the NSE, the midcap 100 index will decline 0.12% and smallcap 100 index is closing decline 0.69. Speaking of various sectoral indices, the NSE saw gains in Metal, PSU Bank and Realty stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, October gold opened at Rs.46011, fell from a high of Rs.46291 points to a low of Rs.45925, with a rise of 260 points, a trend of around Rs.46222 and September Silver opened at Rs.62697, fell from a high of Rs.62794 points to a low of Rs.62313, with a decline of 129 points, a trend of around Rs.62507.
Meanwhile, Rating agency Moody's has said the asset quality risks for banks will rise in most parts of ASEAN and India, as the region battles new waves of coronavirus infections amid low vaccination rates. Yet the continued policy support and strong loss-absorbing buffers will help to mitigate the negative impact.
For banks in ASEAN and India, coronavirus outbreaks triggering strict containment steps will impede economic recovery and erode borrowers' debt repayment capacity, increasing their asset risks. Besides, strong loss-absorbing buffers, the policy support and the virus impact focused on a few segments will keep their credit strength intact.
Technically, the important key resistances are placed in Nifty future are at 16303 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 16333 – 16373 levels. Immediate support is placed at 16202 – 16160 levels.
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