Dear Trader…
Domestic markets opened positive but witnessed one way selling pressure since the start of the session to finally end near day’s low. Global markets too slumped during the day over recessionary fear after the US Fed raised interest rates by 75bps - the biggest increase since 1994. Further the Fed Chair Jerome Powell signalled another big move (50-75bps hike) next month, intensifying its fight to contain rampant inflation. It has sharply increased the interest rate target to 3.4% for 2022 and 3.8% for 2023.
Elevated crude oil prices and persistent foreign capital outflows dented market sentiments. Foreign Institutional Investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs 3,531.15 crore on Wednesday, exchange data showed. Traders were also worried as India added 12,213 fresh COVID-19 cases in the last 24 hours, witnessing a 38.4 per cent jump from 8, 822 cases. This is the first time since February 26 that the viral infections have crossed the 10,000 mark in a day.
Nifty futures opened at 15820.25 points against the previous close of 15708.65 and opened at a low of 15328.00 points. Nifty Future closed with an average movement of 537.00 points and a decline of around 368.70 points and 15339.95 points...!!
On the NSE, the midcap 100 index will decline 2.34% and smallcap 100 index is closing decline 3.42%. Speaking of various sectoral indices, Metal, Media, Realty and PSU 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.50650, fell from a high of Rs.50749 points to a low of Rs.50295 with a rise of 49 points, a trend of around Rs.50487 and July Silver opened at Rs.61223, fell from a high of Rs.61223 points to a low of Rs.60289, with a decline of 144 points, a trend of around Rs.60553.
Meanwhile, Periodic Labour Force (PLF) Survey issued by the Ministry of Statistics and Programme Implementation has said that the unemployment rate or the proportion of persons in the labor force who could not find jobs has dipped to 4.2 percent in July 2020-June 2021 from 4.8 percent a year ago amid the pandemic that caused economic disruption. The unemployment rate was 5.8 percent in 2018-19 and 6.1 percent in 2017-18.
It showed that joblessness has come down gradually during the four years till 2020-21 (July to June). Similarly, the UR among males has also come down to 4.5 percent in 2020-21 from 5.1 in 2019-20, six percent in 2018-19, and 6.2 percent in 2017-18. The same trend of decline in the UR was found among females as it dipped to 3.5 percent 2020-21 from 4.2 percent in 2019-20, 5.2 percent in 2018-19, and 5.7 percent in 2017-18. Worker Population Ratio (WPR) has also improved.
The WPR is defined as the percentage of employed persons in the population. The WPR has increased to 39.8 percent in 2020-21 from 38.2 in 2019-20, 35.3 percent in 2018-20, and 34.7 percent in 2017-18. The WPR in females also improved to 24.2 percent in 2020-21 from 21.8 percent in 2019-20. The WPR among males also rose to 54.9 percent from 53.9 percent in 2019-20. Labour Force Participation Rate (LFPR) has also increased. The LFPR is defined as the percentage of persons in the labor force (i.e. working or seeking or available for work) in the population.
Technically, the important key resistances are placed in Nifty future are at 15388 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 15404 – 15474 levels. Immediate support is placed at 15272 – 15188 levels.
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