Dear Trader…
Mirroring their Asian peers, Indian equity markets were trading in fine fettle with Sensex and Nifty crossing 58300 and 17400 levels in the Today session due to heavy buying in Telecom, Basic Materials and TECK stocks. Gains in frontline blue chip stocks such as Ultratech Cement, ICICI Bank and Bharti Airtel also helped to lift the markets. Traders remain energized as Reserve Bank of India (RBI) decided to hike the repo rate by 50 basis points to 5.4 per cent, crossing the pre-pandemic level of 5.15 per cent. MPC decided to focus on withdrawal of accommodation to keep inflation within target while supporting growth. Further, RBI Governor Das said that India's foreign exchange reserve still strong, and are the 4th highest globally.
Meanwhile, foreign institutional investors (FIIs) were stood as net buyers and bought shares worth Rs 1,474.77 crore on August 4, as per provisional data available on the NSE. On the global front, Asian markets were trading mostly higher as investors were looking ahead to monthly U.S. employment numbers for possible signs of weakness that might prompt the Fed to decide it needs to ease off on rate hikes to cool inflation.
Nifty futures opened at 17422.90 points against the previous close of 17387.85 and opened at a low of 17363.85 points. Nifty Future closed with an average movement of 150.50 points and a rise of around 27.10 points and 17414.95 points...!!
On the NSE, the midcap 100 index will rise 0.22% and smallcap 100 index is closing decline 0.06%. Speaking of various sectoral indices Auto, Media, Metal, PSU Bank and Pharma stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, October gold opened at Rs.52525, fell from a high of Rs.52525 points to a low of Rs.51669 with a decline of 397 points, a trend of around Rs.51768 and September Silver opened at Rs.58161, fell from a high of Rs.58232 points to a low of Rs.56609, with a decline of 673 points, a trend of around Rs.57309.
Meanwhile, Reserve Bank of India (RBI) has increased the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points (bps) to 5.40 per cent with immediate effect. Consequently, the standing deposit facility (SDF) rate stood adjusted to 5.15 per cent and the marginal standing facility (MSF) rate and the Bank Rate to 5.65 per cent.
All Asian markets were trading higher; Shanghai Composite gained 33.08 points or 1.04% to 3,222.12, Straits Times advanced 12.15 points or 0.37% to 3,282.01, Nikkei 225 surged 243.67 points or 0.87% to 28,175.87, Jakarta Composite soared 13.22 points or 0.19% to 7,070.57, KOSPI rose 17.69 points or 0.72% to 2,490.80, Hang Seng increased 77.13 points or 0.38% to 20,251.17 and Taiwan Weighted was up by 333.84 points or 2.27% to 15,036.04. The RBI’s Monetary Policy Committee (MPC) also decided to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth. These decisions are in consonance with the objective of achieving the mediumterm target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth.
On the inflation front, the inflation projection is retained at 6.7 per cent in 2022-23, with Q2 at 7.1 per cent; Q3 at 6.4 per cent; and Q4 at 5.8 per cent, and risks evenly balanced. The real GDP growth projection for 2022-23 is retained at 7.2 per cent, with Q1 at 16.2 per cent; Q2 at 6.2 per cent; Q3 at 4.1 per cent; and Q4 at 4.0 per cent, and risks broadly balanced.
Technically, the important key resistances are placed in Nifty future are at 17474 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 – 17533 levels. Immediate support is placed at 17373 – 17303 levels.
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