Dear Trader…
Extending their losing streak for second straight session, Indian benchmark indices ended the Monday’s session on disappointing note, with Sensex and Nifty breaching their crucial psychological 52,900 and 15,800 levels, respectively. Markets started the week with a sharp cut and remained under pressure throughout the session, as investors awaited inflation data later in the day, while global markets plunged over fears of aggressive policy tightening by the US Federal Reserve later this week.
Markets were trading in deep sea of red in late afternoon session amid reports that with Chief Economic Advisor V Anantha Nageswaran citing the IMF forecast that the Indian economy would cross $5 trillion by 2026-27, leader P Chidambaram said the goal of a USD 5 trillion GDP appears to be a case of 'shifting goalposts' as the original target year was 2023-24. Market participants overlooked Chief Economic Advisor (CEA) Anantha Nageswaran’s statement that India has shown exemplary resilience in recovery from the COVID-19 pandemic crisis.
Nifty futures opened at 15900.10 points against the previous close of 16219.35 and opened at a low of 15673.50 points. Nifty Future closed with an average movement of 274.50 points and a decline of around 429.35 points and 15790.00 points...!!
On the NSE, the midcap 100 index will decline 2.89% and smallcap 100 index is closing decline 3.88%. Speaking of various sectoral indices, IT, Media, Metal, PSU Bank and PVT Bank stocks saw heavy selling on the NSE, while all other sectoral indices also closed lower.
At the start of intra-day trading, August gold opened at Rs.51530, fell from a high of Rs.51660 points to a low of Rs.51093 with a decline of 581 points, a trend of around Rs.51120 and July Silver opened at Rs.61700, fell from a high of Rs.61700 points to a low of Rs.60742, with a decline of 850 points, a trend of around Rs.61079.
Meanwhile, Chief Economic Advisor (CEA) Anantha Nageswaran said India has shown exemplary resilience in recovery from the COVID-19 pandemic crisis. He added all major activities and parameters of the economy have crossed their pre-COVID levels, and it is now enjoying macroeconomic tailwinds.
Nageswaran said quick and precise steps have been taken by the government at the policy level, which was supported by the Reserve Bank of India’s timely interventions. He said compared to developing and developed countries, the Indian economy is firm and stable in terms of various fundamentals. He also said ‘the developed world is moving from low inflation to high inflation and it is in such times that we have managed to keep inflationary pressure under check’.
The CEA said he is hopeful that as per the projections of the International Monetary Fund, India is heading towards achieving a GDP size of $5 trillion by 2027. He added ‘today, we have a strong revival of private investment, and the country has comfortable forex reserves to withstand turbulence in the international currency market. The exponential growth of digital payments in India during the last few years is an indication enough of fast changes in the informal sector.’
Technically, the important key resistances are placed in Nifty future are at 15808 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 15838 – 15909 levels. Immediate support is placed at 15676 – 15606 levels.
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