Dear Trader…
Indian equity benchmarks extended their gains to the third day in a row on Monday, clinching record closing highs, amid firm global market setup. Indices opened the day with a good gap but showed a range-bound session. Traders took some encouragement with a private report that recovering from the economic slump caused by the pandemic, hiring trends saw an improvement in August. The previous month saw a 26% on-year increase in hiring activity to 2.78 lakh.
Some support also came as the RBI data showed that the country's foreign exchange reserves soared by $16.663 billion to touch a lifetime high of $633.558 billion in the week ended August 27, mainly due to an increase in Special Drawing Rights (SDR) holdings.
Nifty futures opened at 17379.00 points against the previous close of 17329.35 and opened at a low of 17361.00 points. Nifty Future closed with an average movement of 68.10 points and a rise of around 78.65 points and 17408.00 points...!!!
On the NSE, the midcap 100 index will rise 0.41% and smallcap 100 index is closing rise 1.09. Speaking of various sectoral indices, Private Bank, Bank, Financial Services, PSU Bank, FMCG and Pharma stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, October gold opened at Rs.47433, fell from a high of Rs.47497 points to a low of Rs.47377.00 with a decline of 127 points, a trend of around Rs.47397 and September Silver opened at Rs.65377, fell from a high of Rs.65513 points to a low of Rs.65064, with a decline of 67 points, a trend of around Rs.65142.
Meanwhile, a member of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) -- Shashanka Bhide has said that revival of the Indian economy would be sustained if the COVID-19 pandemic is under control. Bhide added that prioritising expenditure to get maximum employment and income effects while controlling the pandemic are necessary in the short term. He said high inflation is a crucial concern and macroeconomic stability can be achieved when there is moderate level of inflation.
Further, he said there are clear positive signs given what the economy has suffered due to the COVID-19 pandemic, not only from the direct impact but also the repercussions from the set back to the economies around the world. He noted the positive signs are indeed the recovery in the output levels from the lows that we saw in Q1: 2020-21 and then the fall again during the course of the second surge of the pandemic in April-May 2021.
According to Bhide, given that two of the three months of the first quarter of 2021-22 were in fact peaks for the severity of the pandemic, the economy appears to have managed to learn from the previous experience. The Indian economy grew by a record 20.1 per cent in the April-June quarter, helped by a very weak base of last year and a sharp rebound in the manufacturing and services sectors in spite of a devastating second wave of COVID-19.
Technically, the important key resistances are placed in Nifty future are at 14434 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 17474 – 17505 levels. Immediate support is placed at 17303 – 17262 levels.
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