Dear
Trader…
Domestic
equity had a weak opening but saw a smart recovery towards the end amid a drop
in UK inflation and short covering ahead of the FOMC meeting minutes release
along with US IIP data. Nifty Future opened lower but gradually climbed up to
close marginally positive with gains of 6 points at 19484 levels. Action was
seen in the Nifty smallcap, which was up 0.58%. Sectorially it was a mixed bag
with buying seen in Realty, Pharma, IT, and Auto.
The market has
been witnessing pressure on account of weak global cues especially because of
the faltering of the Chinese economy and Fitch’s warning to downgrade US
midsized banks. Even on the domestic front sharp surge in inflation data and
weak monsoon progress in the month of August’23 seems to have dented the
investor’s sentiments. We expect this weakness to persist in the market in the
near term in the absence of any positive trigger.
Nifty futures
opened at 19400.40 points against the previous close of 19478.35 and opened at
a low of 19352.55 points. Nifty Future closed with an average movement of 152.85
points and a rise of around 6.20 points and 19484.55 points…!!
On the NSE,
the midcap 100 index will rise 0.08% and small cap 100 index is closing rise
0.57%. Speaking of various sectoral indices only Metal, PVT Bank, Consumer
Durables, Financial Services and Bank 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.58831, fell from a high of Rs.58886
points to a low of Rs.58801 with a decline of 168 points, a trend of around Rs.58806
and September Silver opened at Rs.69977, fell from a high of Rs.70385 points to
a low of Rs.69833, with a rise of 35 points, a trend of around Rs.69989.
Meanwhile, India
approved plans on Wednesday to deploy 10,000 electric buses in 169 cities,
along with charging and associated infrastructure facilities, at an estimated
cost of nearly 580 billion rupees ($7 billion) for a decade. The federal
government will fund 200 billion rupees ($2.4 billion) of the cost of the
scheme, based on a public-private partnership model, but it was not immediately
clear if funds for the rest would come from state governments or private
companies.
Shares of companies that investors expect to benefit from
the plan rose after the news. Electric bus makers Olectra Greentech and
JBM Auto closed up 8.8% and 10.1% respectively. Tata Motors finished up 1.9%,
while Ashok Leyland, which has a unit making electric buses, jumped 2.5% before
settling up 0.9%.
Pursuing plans
for a fleet of 50,000 electric buses nationwide in the next few years, at an
estimated cost of $12 billion, the government of Prime Minister Narendra Modi
has been aggregating demand from state governments and issuing contracts or
tenders inviting bids from companies. The cabinet also approved seven railway
tracking projects worth 325 billion rupees ($3.9 billion) to boost connectivity
and mobility across nine states.
Technically, the important key resistances are placed in Nifty future are at 19484 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 19505 – 19533 levels. Immediate support is placed at 19404 – 19373 levels.
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