Dear Trader…
Extending losses to a third straight day, Indian equity benchmarks ended over half a percent each lower on Thursday, as weak global cues impacted sentiment. Losses across most sectors, led by metal, auto and capital goods, pulled the headline indices lower. After making cautious start, key gauges fell sharply and continued downside move throughout the day, as traders got anxious with a private report stating that even though the overall outlook for corporates have improved on the back of faster than expected recovery, and the same is likely to gain further traction in H2 but the rising commodity prices and logistics cost pose headwinds to their profitability.
Domestic markets however, recovered some of losses in the late afternoon trading, But markets failed to trim all losses and ended lower, even as Economic Advisory Council to the Prime Minister (EAC-PM) Chairman Bibek Debroy said that India is on a path towards a higher growth trajectory, higher poverty reduction, higher employment, and a prosperous, more developed and better governed India and the country’s Gross domestic product (GDP) is likely to grow at around 10 percent in 2021-22.
Nifty futures opened at 17890.00 points against the previous close of 17909.15 and opened at a low of 17692.10 points. Nifty Future closed with an average movement of 251.90 points and a decline of around 139.05 points and 17770.10 points...!!
On the NSE, the midcap 100 index will decline 1.44% and smallcap 100 index is closing decline 1.63. Speaking of various sectoral indices, the NSE saw gains in only PSU Bank stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, December gold opened at Rs.49199, fell from a high of Rs.49247 points to a low of Rs.49060.00 with a decline of 108 points, a trend of around Rs.49184 and December Silver opened at Rs.66401, fell from a high of Rs.66568 points to a low of Rs.66162, with a decline of 275 points, a trend of around Rs.66350.
Meanwhile, Finance Minister Nirmala Sitharaman has said there are clear signs of an uptick in the economy and the industry should now start taking risks and invest in capacity creation that will help cut reliance on imports.
Sitharaman said ‘I appeal to industry not to further delay increasing capacity, not to further delay looking at areas to partner in technology’. Further, she also asked the industry to offer jobs to reduce income disparity and cut down on importing finished goods reduce and instead ramp up investment in manufacturing.
She added ‘at a time when India is looking at impetus to growth, I want Indian industry to be a lot more risk-taking and understand what India wants.’ Besides, she said Prime Minister Modi has asked all ministers to identify compliance burdens for the industry in their respective ministries and departments, and simplify them.
Technically, the important key resistances are placed in Nifty future are at 17808 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 17838 – 17888 levels. Immediate support is placed at 17676 – 17606 levels.
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