Dear Trader…
Domestic equities continued its northbound journey towards 18k levels on the back of positive global cues. Nifty future opened higher and continued to witness strength throughout the session to finally end with modest gains of 114 points (+0.64%) at 17,965 levels. Broader market too closed with gains of 0.6%. Except Auto, all sectorial indices ended in green.
US and European markets were mixed ahead of release of key Eurozone growth data with focus on upcoming minutes of the Federal Reserve’s July meeting, for more cues. While Asian markets were positive as investors expect China to roll out more stimulus measures to boost economic growth.
Market has bounced back sharply by 18% in last one and-a-half month, turning positive for YTD (CY22). It has sharply outperformed the global markets with gains of 3%. Nifty is now just 3% away from all time high and although at index level risk reward may not be favourable at current juncture, stock specific action is likely to continue in the market.
Nifty futures opened at 17898.40 points against the previous close of 17850.65 and opened at a low of 17867.90 points. Nifty Future closed with an average movement of 124.40 points and a rise of around 114.80 points and 17965.45 points...!!
On the NSE, the midcap 100 index will rise 0.47% and smallcap 100 index is closing rise 0.49%. Speaking of various sectoral indices only Auto 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.51843, fell from a high of Rs.51965 points to a low of Rs.51965 with a decline of 127 points, a trend of around Rs.51710 and September Silver opened at Rs.57776, fell from a high of Rs.57990 points to a low of Rs.56923, with a decline of 698 points, a trend of around Rs.56967.
Meanwhile, India’s inflation based on wholesale price index (WPI) eased to 13.93% in the month of July 2022 as against 15.18% in June, as prices of food articles, nonfood articles and crude petroleum & natural gas declined. Component wise, primary articles index, having weight of 22.62%, declined by 2.69% to 177.5 (provisional) in July, 2022 from 182.4 (provisional) for the month of June, 2022. Prices of Minerals increased in July 2022 as compared to June 2022. Prices of Food Articles, Nonfood Articles and Crude Petroleum & Natural Gas declined in July 2022 as compared to June 2022.
Fuel & Power index, having weight of 13.15%, increased by (6.56%) to 165.6 (provisional) in July 2022 from 155.4 (provisional) for the month of June 2022, as prices of mineral oils and electricity increased in July 2022 as compared to June 2022.
Besides, Manufactured Products constituting the major portion of the index with weight of 64.23%, declined by 0.42% to 143.1 (provisional) in July 2022 from 143.7 (provisional) for the month of June 2022. Meanwhile, for the month of May, 2022 the final Wholesale Price Index and inflation rate for 'All Commodities' (Base: 2011-12=100) stood at 155.0 and 16.63 % respectively.
Technically, the important key resistances are placed in Nifty future are at 18008 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 18088 – 18108 levels. Immediate support is placed at 17808 – 17676 levels.
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