Dear Trader…
Indian equity benchmarks recovered from opening lows and ended more than half a percent higher on Monday, led by buying in Oil & Gas, Consumer Durables and Power stocks. The benchmarks edged lower in opening deals, as traders got anxious with a private report that the excise duty cuts on diesel and petrol will cost Rs 45,000 crore and lead to a 0.3 percentage point widening in the Centre’s fiscal deficit.
However, benchmark indices staged a strong recovery in afternoon trading as traders turned optimistic with industry chamber PHDCCI stating that India's economic recovery gained momentum in recent months on the back of rapid progress in vaccinations, festive season and consequent improvement in consumer and industry sentiments. Additional support also came after Reserve Bank of India (RBI) in its latest report showed that India's forex reserves have increased by $1.919 billion to $642.019 billion for the week ended October 29 on a healthy increase in the currency assets and value of gold.
Nifty futures opened at 17947.85 points against the previous close of 17916.70 and opened at a low of 17852.00 points. Nifty Future closed with an average movement of 301.00 points and a rise of around 221.30 points and 18138.00 points...!!
On the NSE, the midcap 100 index will rise 1.20% and smallcap 100 index is closing rise 1.08%. Speaking of various sectoral indices only PVT Bank, Pharma and Bank 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.48000, fell from a high of Rs.48149 points to a low of Rs.47815.00 with a decline of 18 points, a trend of around Rs.47954 and December Silver opened at Rs.64602, fell from a high of Rs.64849 points to a low of Rs.64297, with a rise of 219 points, a trend of around Rs.64551.
Meanwhile, Finance Ministry has sought suggestions related to taxation from industry and trade associations for Budget 2022-23, which is going to set the tone for the growth of India's economy hit by the COVID-19 pandemic. In a communication to trade and industry associations, the ministry invited suggestions for changes in the duty structure, rates, and broadening of tax base on both direct and indirect taxes giving economic justification for the same.
The ministry said ‘Your suggestions and views may be supplemented and justified by relevant statistical information about the production, prices, revenue implication of the changes suggested and any other information to support your proposal.’ It said the request for correction of inverted duty structure, if any for a commodity, should necessarily be supported by value addition at each stage of manufacturing of the commodity. It would not be feasible to examine suggestions that are either not clearly explained or which are not supported by adequate justification or statistics.
The Budget 2022-23 is expected to be presented in Parliament on February 1 next year. It will be the fourth budget of the Modi 2.0 government and Finance Minister Nirmala Sitharaman. The budget for the next year is expected to address critical issues of demand generation, job creation, and putting the economy on a sustained 8 percent-plus growth path.
Technically, the important key resistances are placed in Nifty future are at 18188 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 18202 – 18218 levels. Immediate support is placed at 18088 – 18008 levels.
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