Dear Trader…
Indian equity benchmarks closed with losses on the monthly futures & options expiry session, marking the third straight day of losses, weighed by Banking, Metal and Telecom stocks. Indian markets opened on a flat note, as India recorded a spike of 23,139 new Covid-19 cases in the past 24 hours. The country also witnessed 309 deaths, taking the death toll to 448,090.
However, buying proved short-lived as markets once again slipped into red terrain in late afternoon session. A continuously depreciating rupee, which tumbled for the fifth straight day against the US dollar, weighed on sentiment. Traders overlooked Apparel Export Promotion Council (AEPC) Chairman A Sakthivel’s statement that the government's decision to expand the scope of the Rs 4.5 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) to support micro, small and medium enterprises would help deal with funds shortage and promote exports.
Nifty futures opened at 17697.30 points against the previous close of 17708.00 and opened at a low of 17580.50 points. Nifty Future closed with an average movement of 159.70 points and a decline of around 88.90 points and 17619.10 points...!!
On the NSE, the midcap 100 index will rise 0.36% and smallcap 100 index is closing rise 0.75. Speaking of various sectoral indices, the NSE saw gains in Realty, PSU Bank and Pharma stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, October gold opened at Rs.45650, fell from a high of Rs.45824 points to a low of Rs.45479.00 with a rise of 45 points, a trend of around Rs.45630 and September Silver opened at Rs.58500, fell from a high of Rs.58669 points to a low of Rs.58150, with a decline of 80 points, a trend of around Rs.58306.
Meanwhile, Chief Economic Adviser (CEA) K V Subramanian has said that India will clock over 7 per cent annual growth during this decade on the back of strong economic fundamentals. During the current fiscal (FY22), he said, growth would be in double-digits and it could moderate to 6.5 - 7 per cent in the next financial year.
Subramanian said ‘when you look at the data itself actually, the V shaped recovery and quarterly growth patterns actually established that the fundamentals of the economy are strong...the kind of reforms that we've done on it, and the supply side measures that we've taken will enable strong growth not only this year but going forward as well.’ He also said ‘this decade will be India's decade of inclusive growth. In FY'23, we expect growth to be between 6.5 to 7 per cent, and then accelerating further as the impact of these reforms is seen. On average, I expect growth to be greater than 7 per cent in this decade for India’.
CEA also pointed out that the government is putting a lot of emphasis on capital expenditure as it has a multiplier effect. He noted that the Union Budget for 2021-22 has provided a capital outlay of Rs 5.54 lakh crore, an increase of 34.5 per cent over the Budget Estimate of 2020-21. It also said the Budget estimate of capital expenditure for FY2020-21 was Rs 4.12 lakh crore.
Technically, the important key resistances are placed in Nifty future are at 17676 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 17707 – 17717 levels. Immediate support is placed at 17474 – 17404 levels.
Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in
