Dear
Trader…
The Indian
equity market started the day on a promising note with a decent gap up in the
benchmark index, but the bulls failed to capitalize on the initial gains and
the index plunged to lower levels. The hustle continued for the entire session
as we witnessed an intense tug of war between bulls and bears. The trail-end
sell-off led Nifty not only to pare down the initial gains but slipped into
negative territory. Post such price action, the index finally concluded the
session near the day’s low, a tad above the 18250 level with a mere gain of
0.13 percent.
We remain
sanguine as, on a technical aspect, the index is firmly placed above all the
major exponential moving averages on the daily chart and is in a cycle of
higher highs – higher lows, construing a positive setup. However, ahead of the
monthly expiry, Nifty has seen some tentativeness at higher levels; but we do
not construe this as any sign of worry. Traders are just opting to take some
money off the table ahead of the expiry event. As far as levels are concerned,
18100-18200 is likely to cushion any fall in the index, followed by the
sacrosanct support of the 18000 mark. Whereas on the flip side, the 18400-18450
is likely to remain the sturdy wall for the index in a comparable period.
Nifty
futures opened at 18355.00 points against the previous close of 18281.00 and
opened at a low of 18264.90 points. Nifty Future closed with an average
movement of 93.10 points and a decline of around 12.00 points and
18269.00 points…!!
On the NSE,
the midcap 100 index will rise 0.26% and smallcap 100 index is closing rise 0.54%.
Speaking of various sectoral indices only IT And Metal stocks were seen selling
on the NSE, while all other sectoral indices closed higher.
At the start
of intra-day trading, December gold opened at Rs.52349, fell from a high of
Rs.52472 points to a low of Rs.52164 with a decline of 4 points, a trend of
around Rs.52285 and December Silver opened at Rs.61125, fell from a high of
Rs.61694 points to a low of Rs.60855, with a rise of 443 points, a trend of
around Rs.61429.
Meanwhile,
commerce and industry minister Piyush Goyal has said that the proposed free
trade agreement (FTA) between India and the UK is a high priority for both the
countries and the next round of negotiations for the pact is slated to happen
next month. He said that things are progressing well and it will yield good
results.
Goyal said
that industry support is required for the agreement and it should be a fair,
equitable and balanced FTA. He also said that there should not be any strict
timelines to conclude negotiations for an FTA as such agreements have to be
thought through and carefully calibrated and negotiated. He said India and
Britain launched negotiations for the FTA in January with an aim to conclude
talks by Diwali (October 24), but the deadline was missed due to political
developments in the UK.
Technically, the important key resistances are placed in Nifty future are at 18404 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 18484 – 18606 levels. Immediate support is placed at 18188 – 18088 levels.
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