Dear Trader…
Markets traded lackluster in a narrow range and ended marginally higher amid muted cues. The move was largely in sync with the global indices however a mixed trend on the sectoral front kept the participants busy. Finally, the Nifty index settled around the upper band of the days range to close at 17,604.95 levels. On the sectoral front, realty, media and banking gained maximum traction.
We expect volatility to remain high due to the scheduled derivatives expiry of August month contracts. Besides, the caution ahead of the Jackson Hole symposium will continue to weigh on sentiment. Amid all, we recommend continuing with a stock-specific approach and focusing more on overnight risk management.
Nifty futures opened at 17552.10 points against the previous close of 17585.55 and opened at a low of 17495.00 points. Nifty Future closed with an average movement of 140.30 points and a rise of around 24.10 points and 17609.65 points...!!
On the NSE, the midcap 100 index will rise 0.74% and smallcap 100 index is closing rise 0.82%. Speaking of various sectoral indices, only IT, Pharma and 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.51350, fell from a high of Rs.51497 points to a low of Rs.51290 with a decline of 68 points, a trend of around Rs.51349 and September Silver opened at Rs.55079, fell from a high of Rs.55299 points to a low of Rs.54901, with a decline of 237 points, a trend of around Rs.54970.
Meanwhile, Rating agency -- CRISIL in its latest report has said that the domestic pharma industry is likely to report moderate revenue growth of 7-9 percent in the current fiscal (FY23), due to headwinds in export sales in the regulated markets and a high-base effect in the domestic formulations business.
According to the report, operating profitability will shrink another 200-250 basis points (bps) after the 130 bps decline last fiscal due to continued pricing pressure in the US generics market, and high input and freight costs which offset moderate revenue growth. It stated that the domestic formulations market is expected to grow 7-9 percent this fiscal, on a 15 percent growth last fiscal, led by a 6-8 percent average price increase allowed by the National Pharmaceutical Pricing Authority in March 2022 and on the back of new product launches.
The report further said while the demand for Covid-19-induced drugs and vitamins is fading, a pickup in lifestyle-related chronic portfolio drugs and a few acute portfolio drugs, such as in the dermatology and ophthalmology segments, is likely to drive demand this fiscal.
Technically, the important key resistances are placed in Nifty future are at 17676 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 17730 – 17808 levels. Immediate support is placed at 17577 – 17505 levels.
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