Dear Trader…
Indian equity benchmarks made a smart intra-day recovery after opening with losses but failed to hold gains and closed deep in the red on Monday, following weak global sentiments. This was the second consecutive session in which the markets ended in the red. Key indices opened with a gap down as traders got anxious with report that the country’s foreign exchange reserves declined by $1.34 billion to $641.113 billion in the week ended September 10, 2021, according to RBI data. During the reporting week ended September 10, the fall in the reserves was on account of a decline in Foreign Currency Assets (FCAs), a major component of the overall reserves.
Some support also came with Sebi data indicating that investment through participatory notes (P-notes) in the domestic capital market was at Rs 97,744 crore till August-end, and going forward the inflow is expected to remain positive for the rest of the year. But, buying proved short-lived as markets once again entered into red terrain and ended in a bear grip, as investors were spooked by a possible spillover of China's Evergrande's debt woes, fall in commodity prices and ahead of US Federal Reserve policy meet outcome.
Nifty futures opened at 17460.25 points against the previous close of 17603.15 and opened at a low of 17355.00 points. Nifty Future closed with an average movement of 263.20 points and a decline of around 247.35 points and 17355.80 points...!!!
On the NSE, the midcap 100 index will decline 2.16% and smallcap 100 index is closing decline 1.75. 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.45930, fell from a high of Rs.46210 points to a low of Rs.45880.00 with a rise of 153 points, a trend of around Rs.46139 and September Silver opened at Rs.59531, fell from a high of Rs.60200 points to a low of Rs.59222, with a decline of 95 points, a trend of around Rs.59897.
Meanwhile, President Ram Nath Kovind has said the Covid-19 pandemic hit the country's economy hard. Kovind said the past 18 months have been very trying for the country. He stated the government has taken various fiscal measures for the welfare of the poor and alleviate distress.
He added ‘these are often financed through money, which may be said to have been borrowed from our children and grandchildren. We owe it to them that these scarce resources are put to best possible use and are most effectively used for the welfare of the poor, he said, adding that CAG has a very important role in this.’ He mentioned audit engagements provide a unique opportunity of gaining deep understanding of the system and place CAG in a good position of suggesting improvements.
Technically, the important key resistances are placed in Nifty future are at 17373 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 17404 – 17414 levels. Immediate support is placed at 17272 – 17170 levels.
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