Dear Trader…
In a volatile trade, Indian Benchmark indices erased most of their initial losses and ended flat with negative bias on Friday weighed by Oil & Gas and Energy stocks amid a weak trend in global equity markets. Markets made negative start and stayed in red for whole day as traders were concerned as the World Bank projected a growth rate of 6.5 per cent for the Indian economy for the fiscal year 2022-23, a drop of one per cent from its previous June 2022 projections, citing deteriorating international environment. It added that private investment growth is likely to be dampened by heightened uncertainty and higher financing costs.
However, key gauges managed to trim most of their initial losses in late afternoon deals, as traders took some support with Chief economic adviser V Anantha Nageswaran’s statement that India is still on course for 7% growth in the current fiscal year although downside risks dominate the upside risk but it's better placed than other countries. Some support also came as the Department of Expenditure, Ministry of Finance, has released the 7th monthly instalment of Post Devolution Revenue Deficit (PDRD) grant of Rs 7,183.42 crore to 14 states.
Nifty futures opened at 17301.10 points against the previous close of 17325.45 and opened at a low of 17220.30 points. Nifty Future closed with an average movement of 133.65 points and a rise of around 3.65 points and 17329.10 points...!!
On the NSE, the midcap 100 index will decline 0.24% and smallcap 100 index is closing rise 0.24%. Speaking of various sectoral indices, the NSE saw gains in only Media, PVT Bank and Realty while all other sectoral indices closed lower.
At the start of intra-day trading, December er gold opened at Rs.51904, fell from a high of Rs.52120 points to a low of Rs.51852 with a decline of 12 points, a trend of around Rs.51960 and December Silver opened at Rs.61450, fell from a high of Rs.61940 points to a low of Rs.61390, with a rise of 213 points, a trend of around Rs.61559.
Meanwhile, Citing deteriorating international environment, the World Bank in its latest report on ‘South Asia Economic Focus’ has downgraded India’s economic growth forecast to 6.5 per cent for the fiscal year 2022-23 (FY23), a drop of one per cent from its previous June 2022 projections. The Indian economy grew by 8.7 per cent in the previous year. However, it noted that India is recovering stronger than the rest of the world.
Hans Timmer, World Bank Chief Economist for South Asia said ‘The Indian economy has done well compared to the other countries in South Asia, with relatively strong growth performance... bounced back from the sharp contraction during the first phase of COVID’. He observed that India has done relatively well with the advantage that it doesn't have a large external debt, there are no problems coming from that side, and that there is prudent monetary policy. The Indian economy has done especially well in the services sector and especially service exports.
Technically, the important key resistances are placed in Nifty future are at 17404 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 17474 – 17505 levels. Immediate support is placed at 17170 – 17077 levels.
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