Dear Trader…
Indian benchmark indices ended the final session of the June series of futures & options (F&O) over half a percent higher, with major contribution from IT, TECK and Banking stocks amid a positive trend in global markets. Sentiments were upbeat as commerce and industry ministry in its latest data has showed that foreign direct investment (FDI) equity inflows into India increased by 60 percent to $4.44 billion in April 2021 as against $2.77 billion in the same month last year.
Meanwhile, government has notified the accounting standards for small and medium companies that revise the turnover and borrowing limits as well as help in making disclosure requirements less onerous.
Nifty futures opened at 15722.50 points against the previous close of 15695.90 and opened at a low of 15687.25 points. Nifty Future closed with an average movement of 132.30 points and a rise of around 94.10 points and 15790.00 points .. !!!
On the NSE, the midcap 100 index will decline 0.28% and smallcap 100 index is closing rise 0.04%. Speaking of various sectoral indices, only Media, PSU Bank, Realty and Pharma 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.46950, fell from a high of Rs.47119 points to a low of Rs.46811, with a rise of 44 points, a trend of around Rs.47116 and July Silver opened at Rs.67707, fell from a high of Rs.67990 points to a low of Rs.67369, with a rise of 38 points, a trend of around Rs.67970 ..!!
Meanwhile, S&P Global Ratings has slashed India's Gross domestic product (GDP) growth forecast to 9.5 percent for the current fiscal (FY21), from 11 percent earlier, and warned of risk to the outlook from further waves of COVID pandemic. It lowered the growth outlook saying that a severe second COVID-19 outbreak in April and May led to lockdowns imposed by states and sharp contraction in economic activity. Stating that permanent damage to private and public sector balance sheets will constrain growth over the next couple of years, it projected India's growth at 7.8 percent in the next fiscal ending March 31, 2023.
The agency has stated that further pandemic waves are a risk to the outlook given that only about 15 percent of the population has received at least one vaccine dose so far, although vaccine supplies are expected to ramp up. It also said Indian economy contracted by 7.3 percent in fiscal 2020-21 as the country battled the first wave of COVID, as against a 4 percent growth in 2019-20. GDP growth in the current fiscal was estimated to be in double digits initially, but a severe second wave of pandemic has led to various agencies cut growth projections.
It further said manufacturing and exports were less severely affected compared with 2020, but services were acutely disrupted. It noted that households are running down saving buffers to support consumption and a desire to rebuild saving could hold back spending even as the economy reopens. It stated that monetary and fiscal policies will remain accommodative but new stimulus will not be forthcoming. It added that RBI has no room to cut interest rates with inflation above 6 percent the upper end of the central bank target range.
Technically, the important key resistances are placed in Nifty future are at 15888 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 15909 – 16008 levels. Immediate support is placed at 15707 – 15676 levels.
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