Dear Trader…
Indian equity benchmarks surrendered all of their intra-day gains to end marginally lower amid bouts of volatility on Tuesday. Broader markets closed deep in the red. Domestic markets started the day’s trade at fresh all-time highs, as traders got encouragement with Union Minister Shobha Karandlaje’s statement that the Centre has infused Rs 1,31,000 crore to boost agriculture and allied sectors with special emphasis on becoming an export-oriented economy as India has tremendous potential to satiate global demand.
However, markets turned red with minutes left before the closing bell, even as the Reserve Bank of India in its latest monthly bulletin ‘October 2021’ stating that amidst an accentuation of global risks, the Indian economy is picking up steam, although the recovery is uneven and trudging through soft patches.
Nifty futures opened at 18578.90 points against the previous close of 18495.40 and opened at a low of 18395.10 points. Nifty Future closed with an average movement of 198.90 points and a decline of around 58.35 points and 18437.05 points...!!
On the NSE, the midcap 100 index will decline 2.17% and smallcap 100 index is closing decline 1.69. Speaking of various sectoral indices, the NSE saw gains in IT and Financial Services stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, October gold opened at Rs.47410, fell from a high of Rs.47537 points to a low of Rs.47308.00 with a rise of 165 points, a trend of around Rs.47456 and September Silver opened at Rs.63618, fell from a high of Rs.64391 points to a low of Rs.63552, with a rise of 909 points, a trend of around Rs.64175.
Meanwhile, observing that a continued coordinated policy response to fight COVID-19 including through vaccines is critical to overcome the ongoing health crisis, the International Monetary Fund (IMF) has said that addressing the long-standing reform priorities and improving education outcomes will be key to help minimize adverse medium-term impacts from the pandemic and further boost long-term growth in India.
It further said providing fiscal resources to the health sector and social support to the most vulnerable also remain policy priorities. It said while fiscal space has narrowed, fiscal policy can and should continue to play a key role in facilitating a strong, inclusive and green economic recovery, and help avoid an adverse, longer lasting impact. It said additional fiscal support is warranted until the recovery is fully entrenched, including additional spending on health and to support the most vulnerable groups.
IMF has stated that policy space can be enhanced through a credible and clearly communicated medium-term fiscal consolidation strategy that outlines a gradual removal of policy support and revenue enhancing measures. It also said that while closely monitoring elevated inflation pressures, maintaining accommodative monetary policy remains appropriate until growth begins to firmly recover. It added that financial sector and regulatory policies should support the recovery while allowing the exit of non-viable firms and encouraging banks to continue building capital buffers and recognize problem loans.
Technically, the important key resistances are placed in Nifty future are at 18505 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 18575 – 18606 levels. Immediate support is placed at 18404 – 18373 levels.
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