Dear Trader…
Rising for fourth consecutive day, Indian equity benchmarks ended Wednesday’s session with gains of over a percent, led by strong buying in IT, TECK and Metal stocks amid positive global market sentiments. Key gauges made positive start and stayed in green for whole day, as traders took encouragement with Finance ministry’s statement that the economy is on course to achieve projected 8-8.5 per cent growth based on high-frequency indicators for the first quarter of the current fiscal.
Markets extended gains in afternoon deals, taking support from the commerce and industry ministry stating that foreign direct investment (FDI) inflows in the research and development sector have increased to $343.64 million in 2021 against $55.77 million in 2020. Traders also took a note of Rajya Sabha informed that cases of frauds on public sector banks have come down by about 50 per cent in FY'22 to 2,369 as against 4,680 recorded in the previous fiscal. The amount involved in the frauds too declined to Rs 3,204 crore from Rs 7,306 crore in 2020-21.
Nifty futures opened at 16521.30 points against the previous close of 16346.95 and opened at a low of 16492.00 points. Nifty Future closed with an average movement of 85.60 points and a rise of around 147.55 points and 16494.50 points...!!
On the NSE, the midcap 100 index will rise 0.19% and smallcap 100 index is closing rise 0.81%. Speaking of various sectoral indices only Media, Auto and Realty stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, August gold opened at Rs.50275, fell from a high of Rs.50415 points to a low of Rs.50221 with a rise of 25 points, a trend of around Rs.50345 and September Silver opened at Rs.55849, fell from a high of Rs.55946 points to a low of Rs.55550, with a rise of 73 points, a trend of around Rs.55800.
Meanwhile, expressing optimism over the economic condition of the country, Finance Ministry has said that the economy is on course to achieve projected 8-8.5 per cent growth based on high-frequency indicators for the first quarter of the current fiscal. Minister of state for finance Pankaj Chaudhary said ‘since then, sustained growth momentum has been observed in several High Frequency Indicators (HFIs), indicating that the projected growth path is on course in the first quarter of FY 2022-23’.
In order to ensure continued growth momentum, he said the government has taken several steps to address high inflation imported from abroad. He said these include cut in excise duty on petrol and diesel and special excise duty/cess on the export of petrol, diesel and aviation turbine fuel that are likely to alleviate inflationary pressures. Further, to rein in inflation, he said RBI in its June Monetary Policy Committee meeting hiked the repo rate by 50 basis points, on top of the earlier hike of 40 basis points in May 2022.
On the impact of geopolitical tension on Indian economy, he said, Russia-Ukraine war has led to global supply disruptions resulting in steep increase in global commodity prices, including prices of crude oil, gas, edible oils and fertilizers, among others. He highlighted that the government is closely monitoring the global price movements and their impact on India’s economy through trade.
Technically, the important key resistances are placed in Nifty future are at 16533 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 16575 – 16606 levels. Immediate support is placed at 16373 – 16303 levels.
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