Dear Trader…
Indian markets opened positive and after remaining lacklustre in the initial half, it surged higher in the second half to close near days’ high. Global markets bounced back as fear with regards to collapse of struggling Chinese developer Evergrande Group like Lehman Brothers eased a little. Further with global economy slowing down due to rising Delta variant cases, investors are anticipating the central banks would continue with their dovish tone Except consumer durables and auto, all other sectoral indices ended in the green, with realty, IT and metal indices up 2-3%. Broader market ended on a mix note.
Global cues would continue to influence market this week as all eyes are set on ECB and US Fed MPC outcome where the expectation of continuation of dovish stance is running high. On the domestic front, with active cases falling to 6-month low, sentiments continue to be buoyant as the economic recovery continues. However, with valuations getting stretched, there would be bouts of volatility intermittently and hence traders should navigate cautiously.
Nifty futures opened at 17378.00 points against the previous close of 17386.65 and opened at a low of 17335.50 points. Nifty Future closed with an average movement of 234.05 points and a rise of around 175.40 points and 17562.05 points...!!!
On the NSE, the midcap 100 index will rise 0.64% and smallcap 100 index is closing decline 0.14. Speaking of various sectoral indices only Auto and PSU Bank 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.46210, fell from a high of Rs.46355 points to a low of Rs.46130.00 with a rise of 71 points, a trend of around Rs.46349 and September Silver opened at Rs.59640, fell from a high of Rs.60575 points to a low of Rs.59460, with a rise of 743 points, a trend of around Rs.60352.
Meanwhile, Apex exporters' body Federation of Indian Export Organisations (FIEO) has said that it will focus on new products and markets for diversification with a view to boosting the country's outbound shipments. Further, FIEO President A Sakthivel said that the order booking position is encouraging till October, but many exporters are not in a position to take further contracts due to erosion of liquidity and uncertainties on the policy front.
Sakthivel said ‘I have raised the issue of shortage of containers, frequent shutouts by the shipping lines and exorbitant freight rates, that are having a dampening effect on the exports, with Commerce Minister Piyush Goyal.’ He also said that the other issues which FIEO has raised with the government include rationalization of the export policy of raw material to strike a balance between exports and domestic requirement; automatic enhancement of the existing working capital requirement by 20-25 percent by banks; extension of factoring facilities with institutions like ECGC; and removal of transport and logistics problems by regulating the movement of empty containers from India.
Technically, the important key resistances are placed in Nifty future are at 17606 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 17505 – 17474 levels.
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