Dear Trader…
Indian equity benchmarks closed on a flat note after a volatile trade on Friday amid a largely negative trend in global stocks. Markets made positive start, as traders took some support with the Confederation of Indian Industry (CII) urged the government to provide a fiscal stimulus worth Rs 3 trillion along with direct cash transfers to perk up domestic demand. The industry body also sought expansion in the Reserve Bank of India (RBI) balance sheet to meet the demand exigencies of the pandemic.
Also, India maintained 43rd rank on an annual World Competitiveness Index compiled by the Institute for Management Development (IMD) that examined the impact of COVID-19 on economies around the world this year. However, key indices soon erased initial gains and slipped over half a percent in morning trades, as sentiments turned pessimistic with a private report stated that lockdowns imposed by the states in April and May to contain the second wave of the deadly COVID-19 pandemic has likely led to the economy contracting 12 per cent in the June quarter as against 23.9 per cent contraction in the same quarter in 2020.
Nifty futures opened at 15758.00 points against the previous close of 15692.15 and opened at a low of 15465.10 points. Nifty Future closed with an average movement of 308.90 points and a rise of around 35.35 points and 15727.50 points .. !!!
On the NSE, the midcap 100 index will rise 1.05% and smallcap 100 index is closing rise 0.88%. Speaking of various sectoral indices, only Financial Service, FMCG and Private Banks stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, August gold opened at Rs.47147, fell from a high of Rs.47387 points to a low of Rs.46827, with a decline of 123 points, a trend of around Rs.46835 and July Silver opened at Rs.68417, fell from a high of Rs.68740 points to a low of Rs.67673, with a rise of 151 points, a trend of around Rs.67750..!!
Meanwhile, an assessment made by the Reserve Bank of India (RBI) has revealed that the devastating second wave of the coronavirus pandemic in April-May is estimated to have cost the nation Rs 2 lakh crore in terms of output. It said the second wave's toll is mainly in terms of the hit to domestic demand on account of regional and specific containment rather than a nation-wide lockdown.
The article, published in the RBI's monthly Bulletin, stressed that speed and scale of vaccination against COVID-19 will shape the path of economic recovery which has the resilience and the fundamentals to bounce back from the pandemic and unshackle itself from pre-existing cyclical and structural hindrances. Observing that vaccines by themselves will not end the pandemic, the article said ‘we have to learn to live with the virus, complementing vaccines with ramping up investment in healthcare, logistics and research. The pandemic is a real shock with real consequences.’
Technically, the important key resistances are placed in Nifty future are at 15777 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 15808 – 15838 levels. Immediate support is placed at 15676 – 15606 levels.
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