Dear Trader…
Indian equity benchmarks snapped their two-day losing streak and ended the session in green terrain on Monday led by gains in TECK, IT and Telecom stocks. Indices opened a day with gap up, as traders took encouragement with the government stating that the country’s agri-exports are estimated to grow 15% in FY22, adding that export of products like rice, meat, cereals and dairy items rose 44.3% on-year to $4.81 billion during April-June 2021. Their exports were $3.33 billion in the year ago period.
Traders took a note of Icra Ratings’ report that despite the massive windfall gains from fuel taxes and GST collections, the Centre continues to borrow heavily from the market, with the total drawdown crossing 90 per cent of the notified amount so far or 46 per cent of the total borrowings for FY22, even though the second quarter is only halfway .
Nifty futures opened at 16560.25 points against the previous close of 16433.70 and opened at a low of 16392.00 points. Nifty Future closed with an average movement of 173.95 points and a rise of around 59.65 points and 16493.35 points...!!!
On the NSE, the midcap 100 index will decline 0.86% and smallcap 100 index is closing decline 1.85. Speaking of various sectoral indices, the NSE saw gains in IT, Finance Service and Bank, while all other sectoral indices closed lower.
At the start of intra-day trading, October gold opened at Rs.47215, fell from a high of Rs.47318 points to a low of Rs.47149.00 with a rise of 110 points, a trend of around Rs.47268 and September Silver opened at Rs.62144, fell from a high of Rs.62648 points to a low of Rs.61878, with a rise of 813 points, a trend of around Rs.62534.
Meanwhile, given the uncertainties due to the COVID-19 pandemic, Reserve Bank of India (BRI) Governor Shaktikanta Das has opined that continued policy support with a focus on revival and sustenance of growth was the most desirable and judicious policy option at the moment. Das, according to the minutes of the MPC meeting released, also underlined the need for closely monitoring the price situation with a view to anchoring inflation expectations.
He said ‘the need of the hour is twofold: first, continue the monetary policy support to the economy; and second, remain watchful of any durable inflationary pressures and sustained price momentum in key components so as to bring back the CPI inflation to 4 per cent over a period of time in a non-disruptive manner.’
Technically, the important key resistances are placed in Nifty future are at 16515 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 16535 – 16560 levels. Immediate support is placed at 16404 – 16373 levels.
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