Dear Trader…
Indian equity benchmarks bounced back and ended the Thursday’s trade with gains of around a percent, following strong global sentiments. After opening in the green, benchmark indices maintained the lead. Traders took encouragement as Moody's Investors Service has said it will upgrade the country’s rating if there is an increase in growth potential and sustained decline in government debt. The rating agency had raised India's sovereign rating outlook to 'stable', from 'negative', while affirming the 'Baa3' rating - which is the lowest investment grade, just a notch above junk status.
Sentiments remained positive, as Chief Economic Adviser K V Subramanian said the impact of 'taper tantrum' or withdrawal of monetary stimulus by the US Federal Reserve on India may not be much given the strong fundamentals of the country's economy. Traders remain energized after bank credit rose by 6.67 per cent to Rs 109.57 lakh crore and deposits by 9.34 per cent to Rs 155.95 lakh crore in the fortnight ended September 24, 2021. In the previous fortnight ended September 10, 2021, bank credit had risen by 6.7 per cent and deposits by 9.32 per cent.
Nifty futures opened at 17772.55 points against the previous close of 17627.20 and opened at a low of 17753.15 points. Nifty Future closed with an average movement of 130.85 points and a rise of around 180.95 points and 17808.15 points...!!
On the NSE, the midcap 100 index will rise 1.88% and smallcap 100 index is closing rise 1.22%. Speaking of various sectoral indices, the NSE saw heavy gains in Realty, Auto, IT and Private Bank stocks, while all other sectoral indices also closed higher.
At the start of intra-day trading, December gold opened at Rs.46851, fell from a high of Rs.46990 points to a low of Rs.46721.00 with a decline of 173 points, a trend of around Rs.46734 and December Silver opened at Rs.61054, fell from a high of Rs.61596 points to a low of Rs.60925, with a rise of 71 points, a trend of around Rs.61074.
Meanwhile, expressing optimism over India’s rating, Moody's Investors Service has said it will upgrade the country’s rating if there is an increase in growth potential and sustained decline in government debt. The rating agency had raised India's sovereign rating outlook to 'stable', from 'negative', while affirming the 'Baa3' rating - which is the lowest investment grade, just a notch above junk status. While affirming sovereign rating, Moody's had said that a recovery is underway in the Asia's third-largest economy with downside risks to growth from subsequent corona virus infection waves getting mitigated by rising vaccination rates.
Moody's expects India's real GDP to surpass 2019 levels this fiscal year (April 2021 to March 2022), rebounding to a growth rate of 9.3 per cent followed by 7.9 per cent in the next financial year. The Indian economy contracted 7.3 per cent in last fiscal ended March 31, 2021. The US-based rating firm had in 2020 lowered India's rating from 'Baa2', with a 'negative' outlook saying there would be challenges in policy implementation amid low growth and deteriorating fiscal position.
Technically, the important key resistances are placed in Nifty future are at 17888 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 17909 – 17919 levels. Immediate support is placed at 17676 – 17606 levels.
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