Dear Trader…
Indian equity benchmarks wiped off morning gains to end sharply lower on Monday, amid concerns over rising cases of Omicron virus in Europe and surging inflation across the world. The benchmarks staged a gap up opening, as traders took encouragement with the government data showing that India's industrial production rose 3.2 per cent in October 2021. As per the Index of Industrial Production (IIP) data by the National Statistical Office (NSO), the manufacturing sector's output grew 2 per cent in October. Buying further crept in as the finance ministry said India's economic recovery is expected to strengthen in the remaining quarters of the current fiscal year with the investment cycle kicking off, and projected 7% annual growth until the end of the decade.
However, key indices succumbed to selling pressure in second half of trading session on account of profit booking. Domestic markets impacted as Reserve Bank of India (RBI) Governor Shaktikanta Das has cautioned depositors to be careful while chasing high returns as it comes with greater risk. Observing that depositors themselves also need to be very discerning, he said it is important to keep in mind that higher returns or higher interest rates are usually associated with higher risks.
Nifty futures opened at 17559.35 points against the previous close of 17637.65 and opened at a low of 17404.25 points. Nifty Future closed with an average movement of 283.75 points and a decline of around 97.35 points and 17462.00 points...!!
On the NSE, the midcap 100 index will decline 0.25% and smallcap 100 index is closing decline 0.11. Speaking of various sectoral indices, the NSE saw gains in only IT stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, February gold opened at Rs.48213, fell from a high of Rs.48280 points to a low of Rs.48150.00 with a rise of 106 points, a trend of around Rs.48270 and March Silver opened at Rs.61300, fell from a high of Rs.61412 points to a low of Rs.61170, with a rise of 249 points, a trend of around Rs.61400.
Meanwhile, IT and Communications Minister Ashwini Vaishnaw has said that electronics production in India grew at a compound annual growth rate of 17 percent in the last 5 years and reached its all-time high at Rs 5,33,670 crore in 2020-21. He said that many policies of the government including the flagship Production Linked Incentive (PLI) scheme, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), Modified Electronics Manufacturing Cluster (EMC 2.0) are major steps towards making India 'atmanirbhar' in electronics manufacturing. As a result, domestic electronic production has increased from Rs 1,90,366 crore in 2014-15 to Rs 5,33,670 crore in 2020-21.
The minister stated that the growth in production remained almost flat in 2020-21 compared to production worth Rs 5,33,550 crore in 2019-20. The import of electronics chips fell 5.7 per cent to Rs 67,496 crore in 2020-21 from Rs 71,581 crore in 2019-20 and export increased by 17 per cent to Rs 2,064 crore from Rs 1,752 crore in 2019-20.
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 – 17535 levels. Immediate support is placed at 17373 – 17303 levels.
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