Dear
Trader…
Domestic
equities saw some respite today despite muted global cues. China announced
smaller than expected cut in its lending rate, thus disappointing global
investors. Nifty future opened flat but soon gained momentum and closed with
gains of 67 points (+0.35%) at 19399 levels. Broad based buying was seen across
the sectors except for PSU bank and oil & gas. Major buying was seen in IT,
Metals & Realty.
This week
market would take cues from macro data to be released locally as well as
internationally. That apart, most eyes will be on US fed chair Powell’s speech,
Jackson Hole symposium due later in the week and release of RBI meeting
minutes. Thus, in the near term we expect market to trade in broader range with
buying seen at lower levels. Stock specific action is likely to dominate.
Nifty futures
opened at 19325.60 points against the previous close of 19331.50 and opened at
a low of 19310.05 points. Nifty Future closed with an average movement of 121.95
points and a rise of around 67.50 points and 19399.00 points…!!
On the NSE,
the midcap 100 index will rise 0.82% and small cap 100 index is closing rise
0.63%. Speaking of various sectoral indices only PSU Bank, Media and Oil &
Gas 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.58420, fell from a high of Rs.58519
points to a low of Rs.58281 with a rise of 99 points, a trend of around Rs.58474
and September Silver opened at Rs.70425, fell from a high of Rs.71480 points to
a low of Rs.70230, with a rise of 1137 points, a trend of around Rs.71372.
Meanwhile, The
index of economic activity (CEM) grew at a subdued pace of 1 per cent in July
compared with 5.7 per cent a month ago, as per the CareEdge Ratings Economic
Meter. It was the slowest growth in 18 months. Sequentially too, the index fell
sharply to 108.9 in July from 117.9 in June. Weak trade data, mixed rural
demand indicators and moderation in corporate bond issuances weighed on CEM
growth.
However,
services PMI, E-way bill issuances, power consumption and PV sales extended
support. As per the report, high food inflation, uneven monsoon progress and
weak external demand are major headwinds to the economic performance in coming
months. Indicators of rural demand performed poorly in July. While two-three
wheeler sales were down nearly 8 per cent, tractor sales remained unchanged
compared to a year ago level as incessant rains and flooding in some parts of
the country impacted the demand.
Heavy rains
also restricted mobility which impacted petroleum consumption in July. It
recorded a muted growth of 2 per cent during the month, down from 4.5 per cent
growth a month ago. The unemployment rate improved in July to 7.95 per cent
from a month ago at 8.45 per cent due to higher demand for agricultural
labour. However, it was still much higher than a year ago at 6.83 per cent
in July 2022, the report said.
Technically, the important key resistances are placed in Nifty future are at 19399 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 19434 – 19474 levels. Immediate support is placed at 19373 – 19303 levels.
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