Dear Trader…
Indian equity benchmarks closed in the red for second straight day on Friday dragged by heavy selling across the board. Indices opened a day with a strong gap down on weak global cues. The mood on the street remained cautious with the labour ministry’s statement that retail inflation for farm workers and rural labourers rise marginally to 3.92 per cent and 4.09 per cent in July, as compared to the previous month. The numbers in June had stood at 3.83 per cent and 4 per cent, respectively. Traders were also worried, after industry body FIEO said that bilateral trade with Afghanistan has been impacted and Indian exporters are concerned about their payments as banking services and remittances may face restrictions due to the ongoing situation in that country.
Sentiments remained fragile in late afternoon session, even as rating agency ICRA’s report stated that India's Gross domestic product (GDP) growth is estimated to come at the deceptively high level of 20 percent and the gross value added (GVA) will register a growth of 17 percent for the April-June 2021 quarter (Q1FY22) but is far below the same in the pre-COVID times. Besides, India Ratings and Research (Ind-Ra) has revised upwards its 2021-22 (FY22) GDP growth forecast to 9.4 per cent, considering the surprisingly faster recovery after the second wave of COVID, higher exports and sufficient rainfall.
Nifty futures opened at 16400.00 points against the previous close of 16572.30 and opened at a low of 16342.00 points. Nifty Future closed with an average movement of 162.00 points and a decline of around 152.30 points and 16420.00 points...!!!
On the NSE, the midcap 100 index will decline 1.99% and smallcap 100 index is closing rise 2.16. Speaking of various sectoral indices, the NSE saw gains in only FMCG stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, October gold opened at Rs.47250, fell from a high of Rs.47377 points to a low of Rs.47134.00 with a rise of 91 points, a trend of around Rs.47260 and September Silver opened at Rs.62185, fell from a high of Rs.62320 points to a low of Rs.61780, with a rise of 17 points, a trend of around Rs.62150.
Meanwhile, rating agency ICRA in its latest report has said that India's Gross domestic product (GDP) growth is estimated to come at the deceptively high level of 20 percent and the gross value added (GVA) will register a growth of 17 percent for the April-June 2021 quarter (Q1FY22) but is far below the same in the pre-COVID times. It said the low base of the last year, when the GDP had contracted by close to 24 percent, conceals the impact of the second wave of COVID-19 infections.
According to the report, economic activity is boosted by robust government capital expenditure, merchandise exports, and demand from the farm sector. It also said the GVA is estimated to contract 15 percent when compared to the preceding March quarter, which shows the impact of the second wave. It added that the double-digit expansion expected in YoY terms in Q1FY22 is deceptively high, as it benefits inordinately from last year's contracted base.
Technically, the important key resistances are placed in Nifty future are at 16474 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 16505 – 16535 levels. Immediate support is placed at 16303 – 16272 levels.
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