Dear Trader…
Indian equity benchmarks extended gains to a second straight day, with Nifty 50 closed at record closing high while Sensex ended a few points shy of an all-time high on Friday after the Reserve Bank kept the key benchmark rates unchanged for the eighth consecutive time and promised to maintain the status-quo on rates as long as necessary to revive growth.
Markets opened in green and continued its positive run through the day, as sentiments got boost with Ficci stating that India’s GDP is expected to grow at 9.1 per cent in 2021-22 as economic recovery, post the second wave of the pandemic, seems to be holding ground. Ficci’s Economic Outlook Survey also noted that the ongoing festive season would support this momentum.
Nifty futures opened at 17883.80 points against the previous close of 17808.15 and opened at a low of 17835.30 points. Nifty Future closed with an average movement of 104.70 points and a rise of around 104.85 points and 17808.15 points...!!
On the NSE, the midcap 100 index will rise 0.43% and smallcap 100 index is closing rise 1.23%. Speaking of various sectoral indices only Realty, FMCG, Financial Service and Pharma stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, December gold opened at Rs.46861, fell from a high of Rs.47019 points to a low of Rs.46854.00 with a rise of 161 points, a trend of around Rs.46988 and December Silver opened at Rs.60991, fell from a high of Rs.61374 points to a low of Rs.60910, with a decline of 7 points, a trend of around Rs.61251.
Meanwhile, Federation of Indian Chambers of Commerce & Industry (FICCI) in its latest Economic Outlook Survey has stated that India’s GDP is expected to grow at 9.1 per cent in 2021-22 as economic recovery, post the second wave of the pandemic, seems to be holding ground. It also noted that the ongoing festive season would support this momentum. However, the industry body cautioned that a likely surge in people’s movement during Diwali can lead to a rise in the number of COVID cases again.
The chamber said ‘the latest round of Ficci’s Economic Outlook Survey has put forth an annual median GDP growth forecast for 2021-22 at 9.1 per cent. This marks a marginal improvement from the growth projection of 9 per cent recorded in the previous survey round (July 2021)’. It added pick-up in monsoon rains in the latter part of the season and subsequent increase in kharif acreage is likely to keep growth expectations of the agriculture sector upbeat. The survey was conducted in September 2021 and drew responses from leading economists representing the industry, banking and financial services sector.
The industry body said ‘the second quarter GDP data and the upcoming festive season should give a clearer idea of where we are headed on the recovery path and how the demand situation is panning out’. With regard to heading back to the process of normalization, the survey said it was largely felt that the Reserve Bank may indicate a change of stance from accommodative to neutral in the February 2022 policy meeting. It noted ‘however, a hike in the repo rate only looks imminent in the next fiscal year (April 2022). Also, the path towards positive real interest rates is expected to be a staggered one. Much would be contingent on the build-up in domestic price levels and the extent of tapering by the Federal Reserve’.
Technically, the important key resistances are placed in Nifty future are at 17970 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 18008 – 18088 levels. Immediate support is placed at 17878 – 17808 levels.
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