Dear Trader…
Indian equity benchmarks kept swinging between the red and green zones throughout the choppy session and closed flat with a negative bias on Thursday, amid weak global trends. Key gauges made positive start, as traders took some support with Finance Minister Nirmala Sitharaman’s statement that any increase in GST rates under the rate rationalisation exercise is intended to make up for the ‘inefficiencies’ in the value chain. Some support also came as Prime Minister Narendra Modi stating that his government is taking measures to help micro, small and medium enterprises (MSMEs) increase exports and is framing new policies that will help the sector realize its potential.
However, key gauges soon erased gains and turned volatile, as exchange data showed that foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 851.06 crore on Wednesday. Some concern also came amid reports that the Goods and Services Tax (GST) Council’s two-day meeting concluded without any decision on extending compensation to states - for revenue loss on account of the regime’s implementation five years ago - beyond June 30. This was despite at least two dozen states raising the issue.
Nifty futures opened at 15792.95 points against the previous close of 15780.85 and opened at a low of 15706.85 points. Nifty Future closed with an average movement of 167.15 points and a decline of around 62.85 points and 15718.00 points...!!
On the NSE, the midcap 100 index will decline 0.82% and smallcap 100 index is closing decline 0.46%. Speaking of various sectoral indices, the NSE saw gains in only Bank, Fin Service and PVT Bank while all other sectoral indices closed lower.
At the start of intra-day trading, August gold opened at Rs.50740, fell from a high of Rs.50940 points to a low of Rs.50433 with a rise of 148 points, a trend of around Rs.50877 and July Silver opened at Rs.59200, fell from a high of Rs.59286 points to a low of Rs.58350, with a decline of 261 points, a trend of around Rs.58800.
Meanwhile, RBI Governor Shaktikanta Das has emphasised the need for proper interpretation of data to facilitate more informed decision making as it will bring clarity in communication from decision makers as well as formation of rational expectations from market participants. He said the importance of statistics in public policy is well understood. In the face of high uncertainty brought on by the COVID-19 pandemic, the discipline of statistics found itself in greater spotlight. This unprecedented global phenomenon has tested human endeavour in multiple facets and magnitude.
RBI Governor said statistical innovations arising out of the pandemic disruption will have long-lasting benefits and added that the upheaval also posed challenges to statistical agencies to build more public trust in the resulting statistics. While new data sources open up opportunities for official statistics, he said it also raises issues for the discipline. He also stated that statistics should focus on laying down the pathway towards proper interpretation in the present world of data abundance. This would facilitate more informed decision making, clarity in communication from decision makers and formation of rational expectations from market participants.
Technically, the important key resistances are placed in Nifty future are at 15787 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 15808 - 15888 levels. Immediate support is placed at 15606 – 15474 levels.
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