Dear Trader…
Indian equity benchmarks suffered sharp losses on Monday, extending losses to the fourth trading session in a row. A sell-off across sectors, led by realty, energy and consumer durables shares, pulled the headline indices lower. Broader markets also tumbled, with both the midcap and smallcap indices falling by around three percent. Equity markets started the week on a negative note and extended their decline further, as RBI data showed the country’s foreign exchange reserves declined by $763 million to $640.112 billion in the week ended November 12, 2021. In the previous week ended November 5, the reserves had decreased by $1.145 billion to $ 640.874 billion. It touched a lifetime high of $642.453 billion in the week ended September 3, 2021.
Adding to the pessimism, the government increased goods and services tax (GST) applicable on finished products such as apparel, textiles and footwear from 5 percent to 12 percent, effective January 2022.
The benchmark indices continued to languish at lower levels in late afternoon session, as exchange data showed that the foreign institutional investors (FIIs) were net sellers of stocks worth Rs 3,930.62 on Thursday, thus taking the total net selling to nearly Rs 10,000 crore so far this month in the cash segment. This is following Rs 25,572 crore worth selling in October. Since the start of this fiscal year, FIIs have net sold shares to the tune of Rs 75,500 crore.
Nifty futures opened at 17797.75 points against the previous close of 17992.90 and opened at a low of 17301.55 points. Nifty Future closed with an average movement of 503.45 points and a decline of around 343.00 points and 17449.90 points...!!
On the NSE, the midcap 100 index will decline 3.01% and smallcap 100 index is closing decline 2.74. Speaking of various sectoral indices PSU Bank, Realty, Media, Auto, Financial Services and bank stocks saw heavy selling on the NSE, while all other sectoral indices also closed with significant declines.
At the start of intra-day trading, December gold opened at Rs.48794, fell from a high of Rs.48875 points to a low of Rs.48621.00 with a decline of 137 points, a trend of around Rs.48691 and December Silver opened at Rs.65458, fell from a high of Rs.66056 points to a low of Rs.65438, with a rise of 54 points, a trend of around Rs.65610.
Meanwhile, domestic rating agency -- Icra has upgraded its Gross Domestic Product (GDP) growth estimate for the second quarter of FY2021-22 to 7.9 per cent with a jump in government spending in September. Earlier, it had estimate real GDP growth for the July-September period at 7.7 per cent. The GDP had grown by over 20 per cent in Q1FY22 on a low base as the pandemic’s first wave raged.
It said ‘Economic activity in Q2 FY22 was supported by a pick-up in industrial and service sector volumes after the second wave of Covid-19 subsided and rising vaccine coverage revived confidence. Additionally, healthy Central and state Government spending, robust merchandise exports and continuing demand from the farm sector supported economic activity in that quarter’. It added this would be an improvement when compared to the COVID second wave-hit first quarter of the fiscal.
Technically, the important key resistances are placed in Nifty future are at 17488 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 17505 – 17533 levels. Immediate support is placed at 17303 – 17232 levels.
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