Dear
Trader…
Indian
shares gave up early gains to close flat on Tuesday as heavyweight financials
negated support from IT and metal stocks, while the country reported its lowest
daily rise in COVID-19 infections in more than a month. Risk appetite has been
aided by a steady decline in daily COVID-19 cases in India. On Tuesday, the
country reported 196,427 new infections, while deaths rose by 3,511.
Barclays,
however, cut its full-year 2021-22 economic growth forecast for India, saying
the toll from stringent lockdowns imposed to curb rising infections appeared to
be bigger than its earlier expectation. Earlier this month, ratings agency
Moody’s Investors Service had said the second wave would slow India’s near-term
economic recovery and could weigh on longer-term growth dynamics.
Nifty
futures opened at 15281.05 points against the previous close of 15202.65 and
opened at a low of 15160.00 points. Nifty Future closed with an average
movement of 139.40 points and a rise of around 30.35 points and 15233.00 points
.. !!!
On the NSE,
the midcap 100 index will decline 0.16% and smallcap 100 index is closing
decline 0.08%. As far as various sectoral indices are concerned, only Bank and
F inancial Service stocks were seen selling on the NSE, while all other
sectoral indices closed higher.
At the start
of intra-day trading, June gold opened at Rs.48425, fell from a high of
Rs.48590 points to a low of Rs.48333, with a decline of 25 points, a trend of
around Rs.48528 and July Silver opened at Rs.71510, fell from a high of
Rs.71750 points to a low of Rs.71005, with a decline of 411 points, a trend of
around Rs.71400..!!
The market
has been quite rational over the past few weeks displaying both resilience and
rotation. India’s Covid-19 daily confirmed and overall active cases have
declined sharply over the past 1-2 weeks in many states, which may set the
stage for easing of lockdown restrictions across states.
Even as the
country goes through a severe second wave of Covid-19 the stock market has been
largely resilient. The resilience can be attributed to the declined in daily
confirmed cases of Covid-19 and the eventual possibility of reopening of
lockdowns across states.
The
resilience of the broad market and ‘rotation’ among sectors are not surprising
in the context of declining confirmed daily and overall active Covid-19 cases
and likely gradual easing of restrictions across states over the next few
weeks,” it said.
Technically, the important key resistances are placed at 15088 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 15303 – 15373 levels. Immediate support is placed at 15008 – 14970 levels.
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