Dear Trader…
Indian equity benchmarks suffered sharp losses on Friday tracking a sell-off across global markets. Barring pharmaceutical and healthcare stocks, all sectors slid deep into negative territory. Benchmark indices started gap-down on Dalal Street, as traders were concerned as WHO flags new Covid-19 strain.
World Health Organization officials met on Thursday to discuss a new coronavirus variant circulating in South Africa and Botswana. The new variant, called B.1.1529, carries an unusually large number of mutations, Francois Balloux, director of the UCL Genetics Institute. Also, foreign fund outflow dented sentiments in the markets.
Indices continued to languish at lower levels with deep cuts in second half of the session, as some concern came with the CBDT said that the Income Tax Department has detected huge unaccounted income after it raided some Indian companies and their associates, being controlled by a neighbouring country, in Delhi, Maharashtra and Gujarat.
Nifty futures opened at 17415.50 points against the previous close of 17588.95 and opened at a low of 17015.05 points. Nifty Future closed with an average movement of 412.90 points and a decline of around 557.15 points and 17031.80 points...!!
On the NSE, the midcap 100 index will decline 3.25% and smallcap 100 index is closing decline 2.89. Speaking of various sectoral indices, the NSE saw gains in only Pharma stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, December gold opened at Rs.47615, fell from a high of Rs.48145 points to a low of Rs.47565.00 with a rise of 716 points, a trend of around Rs.48137 and December Silver opened at Rs.63101, fell from a high of Rs.63476 points to a low of Rs.62612, with a rise of 196 points, a trend of around Rs.63346.
Meanwhile, investments in Indian capital markets through participatory notes (P-notes) rose to Rs 1.02 lakh crore till October-end, making it the highest level in 43 months. P-notes are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be a part of the Indian stock market without registering themselves directly. However, they need to go through a due diligence process.
According to Securities and Exchange Board of India data, the value of P-note investments in Indian markets -- equity, debt, and hybrid securities -- was at Rs 1,02,553 crore by October end. This was the highest level since March 2018, when P-notes had invested to the tune of Rs 1,06,403 crore. Of the total Rs 1,02,552 crore invested through the route till October, Rs 93,213 crore was invested in equities, Rs 8,885 crore in debt, Rs 455 crore in hybrid securities.
At the end of September this year, the investment level was at 97,751 crore, Rs 97,744 crore by August end. The figure for July was revised to Rs 85,799 crore from Rs 1,01,798 crore posted earlier. Prior to that, the investment level was at Rs 92,261 crore by June-end, Rs 89,743 crore by May-end, Rs 88,447 crore at April-end, and Rs 89,100 crore by March-end.
Technically, the important key resistances are placed in Nifty future are at 17202 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 17272 – 17303 levels. Immediate support is placed at 16970 – 16909 levels.
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