Dear Trader…
After making cautious start, markets gained some traction, as traders got some support with Commerce and Industry Minister Piyush Goyal’s statement that the country’s exports are growing at a healthy rate and now exporters can aim for $450-500 billion of outbound shipments during the next fiscal year. Additional optimism also came in as foreign portfolio investors (FPIs) remained net buyers to the tune of Rs 1,997 crore so far in October as India continues to be a competitive investment destination from a long-term perspective.
However, last hour profit-booking in index heavyweights including TCS, Tech Mahindra, Infosys and HCL Technologies pulled back the indices from day's high. Some cautiousness came in as former Reserve Bank Governor C Rangarajan said India becoming a $5 trillion economy by 2025 is impossible under the current circumstance and the country needs to grow at nine per cent per annum for the next five years in order to achieve that.
Nifty futures opened at 17919.00 points against the previous close of 17973.05 and opened at a low of 17862.60 points. Nifty Future closed with an average movement of 152.40 points and a rise of around 35.45 points and 18008.50 points...!!
On the NSE, the midcap 100 index will rise 0.55% and smallcap 100 index is closing rise 0.80%. Speaking of various sectoral indices only IT 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.47099, fell from a high of Rs.47325 points to a low of Rs.47036.00 with a rise of 109 points, a trend of around Rs.47160 and December Silver opened at Rs.61738, fell from a high of Rs.61945 points to a low of Rs.61211, with a decline of 485 points, a trend of around Rs.61259.
Meanwhile, Reserve Bank of India (RBI) Governor Shaktikanta Das has said the RBI is looking for growth signs to become entrenched and show signs of durability and closely 'watchful' of evolving dynamics. He said the RBI is studying developments around inflation and growth that are dynamic and are evolving. He noted that the central bank has retained its growth forecast for the country's real gross domestic product (GDP) at 9.5 percent for the current financial year (FY22).
Das said growth has revived in certain segments and there is an uptick in some high-speed indicators. However, he said a few segments are still facing growth impediments. He also stated that the passenger car segment, which was showing some improvements, has now slightly moderated and the pick-up in the two-wheeler segment is still not visible. Besides, the contact-intensive services have shown some improvement but it is way below the pre-pandemic levels. Overall, he said the growth is slack and there is still an output gap.
The governor further said the RBI is an inflation-targeting body and there should not be any doubt about its commitment to inflation. He said ‘Going forward, in a calibrated manner and without creating disruption, our endeavor (for CPI inflation) would be to get back to as close as possible towards 4 percent.’
Technically, the important key resistances are placed in Nifty future are at 18008 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 18038 – 18088 levels. Immediate support is placed at 17888 – 17808 levels.
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