Dear Trader…
Indian equity benchmarks extended their record-high closing run to a fourth day on Tuesday as gains in IT and consumer stocks and falling domestic COVID-19 cases helped offset losses in metal and banking stocks and investor concerns around global economic growth. Sentiments got hurt as Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai stated that bilateral trade between Afghanistan and India will get impacted significantly in these uncertain times. He said domestic exporters should follow caution looking into the political development in Afghanistan, particularly with regard to payments, for which adequate credit insurance may be availed by them.
Some concern also came as foreign portfolio investors (FPIs) sold Rs 7,000 crore worth of equities in the secondary markets in the June quarter. The holding of these investors (including ADR and GDR) in the BSE-200 index declined to 23.9 per cent from 24.4 per cent in March 2021. On the global front, all Asian markets were under pressure amid concern about turmoil in Afghanistan and unease about China’s economic outlook after weak July activity.
Nifty futures opened at 16543.10 points against the previous close of 16559.45 and opened at a low of 16483.70 points. Nifty Future closed with an average movement of 126.30 points and a rise of around 42.75 points and 16602.20 points...!!!
On the NSE, the midcap 100 index will rise 0.33% and smallcap 100 index is closing decline 0.25. Speaking of various sectoral indices, the NSE saw gains in IT, FMCG, Pharma and Auto stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, October gold opened at Rs.47235, fell from a high of Rs.47549 points to a low of Rs.47184.00 with a rise of 289 points, a trend of around Rs.47514 and September Silver opened at Rs.63483, fell from a high of Rs.63866 points to a low of Rs.63483, with a rise of 298 points, a trend of around Rs.63755.
Meanwhile, Care Ratings in its latest report has said that India's pharmaceutical sector is looking at an opportunity to the tune of $10 to 11 billion in the form of COVID-19 vaccine supply, in both domestic and export markets in the next three years. However, it said the Indian vaccine makers are unlikely to get the premium pricing being enjoyed by US-based multinational companies which are anywhere between $15 and 25 per dose, their average realization could remain anywhere between $3.25 and $3.50 per dose.
According to the report, the majority of domestic demand is expected to be fulfilled by March 2022, when the export opportunities in the high-income markets such as Europe, North America, and developed Asian countries are likely to be completely exhausted. However, it said the export opportunities in various African, Asian excluding China and Japan and some South American countries, where the pace of vaccination remains very slow would still exist, which is expected to remain greater than 1.25 billion doses.
Technically, the important key resistances are placed in Nifty future are at 16646 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 16676 – 16707 levels. Immediate support is placed at 16505 – 16474 levels.
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