Dear Trader…
Markets traded volatile and lost nearly half a percent on the monthly F&O expiry day. Initially, the benchmark opened with an uptick and traded range bound for most of the session however a sharp decline in the final hours completely changed the tone. Consequently, the Nifty index settled closer to the day’s low to close at 17,522.45 levels. Most sectoral indices traded in tandem with the benchmark and ended lower. The broader indices managed to withstand the last hour decline and ended marginally higher to flat.
The recent move in the index indicates consolidation after the phenomenal gains and we expect the trend to continue. Meanwhile, volatility would keep the participants on their toes. In absence of any major domestic event, the performance of global indices will remain on the radar for cues. We thus recommend focusing more on position management and preferring stocks from the defensive basket.
Nifty futures opened at 17684.40 points against the previous close of 17617.25 and opened at a low of 17501.00 points. Nifty Future closed with an average movement of 238.35 points and a decline of around 96.25 points and 17521.00 points...!!
On the NSE, the midcap 100 index will decline 0.06% and smallcap 100 index is closing rise 0.45%. Speaking of various sectoral indices, the NSE saw gains in only PSU Bank and Realty stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, October gold opened at Rs.51497, fell from a high of Rs.51846 points to a low of Rs.51497 with a rise of 298 points, a trend of around Rs.51737 and September Silver opened at Rs.55240, fell from a high of Rs.55740 points to a low of Rs.55238, with a rise of 525 points, a trend of around Rs.55462.
Meanwhile, expressing optimism over the country’s overall position, the finance ministry's monthly economic review said India is better placed on the growth-inflation-external balance triangle for 2022-23 than it was two months ago, on the back of government policy response and the Reserve Bank's monetary policy actions. On the price situation, the review said in absence of any further shocks, the downward movement of global commodity prices along with the RBI's monetary measures and the government's fiscal policies are expected to cap inflationary pressures in the coming months. It noted that softening of inflationary pressures in India is further on the anvil as the prices of important raw materials such as iron ore, copper and tin that feed into the domestic manufacturing process, globally trended downwards in July 2022. Headline retail inflation eased to 6.7 per cent in July 2022 from 7.01 per cent in the previous month.
It further said the Index of Industrial Production (IIP) and eight core industries points towards strengthening of industrial activity, while PMI Manufacturing touched an 8-month high in July with marked gains in growth of new business and output. On the external front, it said, post the outbreak of the Russia-Ukraine conflict, an increase in uncertainty among investors has led to capital outflows, not just from India alone but from the group of emerging market economies (EMEs) as a whole. Thus, apart from India, the currencies of several EMEs also depreciated against the US dollar. Between January and July of 2022, foreign portfolio investors pulled out $48.0 billion from EMEs.
Technically, the important key resistances are placed in Nifty future are at 17606 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 17636 – 17676 levels. Immediate support is placed at 17474 – 17373 levels.
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