Dear Trader…
Indian equity benchmarks retreated from record highs on Friday but posted their fourth straight week of gains as a series of government support schemes boosted sentiment across sectors. Markets made a strong opening, as sentiment got a boost with Union Finance Minister Nirmala Sitharaman’s statement that the National Asset Reconstruction Company (NARCL) would be operational soon, and it had to ensure resolving bad loans within five years, beyond which the guarantee to be issued by the government would expire. The Cabinet approved a government guarantee of Rs 30,600 crore to be provided for the security receipts issued by the NARCL to buy bad loans of lenders.
Traders overlooked India Ratings’ report stated that with the resumption of economic activity, the collection efficiency for securitisation transactions moved up from 67 per cent in May 2021 to 79 per cent in July. However, it is yet to reach March 2021 levels of 83 per cent. Meanwhile, in order to rave up the innovation and entrepreneurship ecosystem across the country, Atal Innovation Mission (AIM) NITI Aayog has inked partnership with Dassault Systemes.
Nifty futures opened at 17670.00 points against the previous close of 17611.25 and opened at a low of 17558.00 points. Nifty Future closed with an average movement of 242.00 points and a decline of around 6.25 points and 17605.00 points...!!!
On the NSE, the midcap 100 index will rise 0.45% and smallcap 100 index is closing rise 0.54. Speaking of various sectoral indices, PSU Bank, Metal, Realty, Pharma, IT and FMCG 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.46100, fell from a high of Rs.46239 points to a low of Rs.45853.00 with a decline of 166 points, a trend of around Rs.45190 and September Silver opened at Rs.61168, fell from a high of Rs.61672 points to a low of Rs.60500, with a decline of 511 points, a trend of around Rs.60566.
Meanwhile, Reserve Bank of India (RBI) in its latest article on the state of the economy, published in the September bulletin, has said prospects are brightening for the Indian economy achieving ‘escape velocity’ from the pandemic as the second wave of COVID-19 wanes and preparedness for future remains on war-alert status. It said aggregate demand is gaining firmer ground, while on the supply side, IIP and core industries mirror improvement in industrial activity and services sector indicators point towards sustained recovery.
It mentioned ‘In August, we believe that India passed a turning point which consolidates and thrives come September.’ Further, it said the trajectory of inflation is shifting down more favourably than anticipated. It stated as pandemic scars heal and supply conditions are restored with productivity gains, a sustained easing of core inflation can be expected, which will reinforce the growth-supportive stance of monetary policy.
Technically, the important key resistances are placed in Nifty future are at 17636 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 17676 – 17707 levels. Immediate support is placed at 17474 – 17404 levels.
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