Markets gained nearly half a percent in a volatile trading session, in continuation of the prevailing trend. The Nifty future index traded lackluster for most of the session however a sharp surge in the last half an hour pushed the index to the day’s high. It finally settled at 18482.35; up by 0.56%. Most of the sectoral indices traded in tandem with the benchmark and ended with modest gains however the underperformance continued on the broader front.
On the global front, Asian markets were trading higher, even after Japan’s industrial production declined more than initially estimated in September. Industrial production decreased by seasonally adjusted 1.7 percent monthly in September, revised down from -1.6 percent estimated initially. Shipments declined by 2.5 percent monthly in September. Meanwhile, the inventories grew 2.9 percent and the inventory ratio gained 5.1 percent.
Nifty futures opened at 18439.00 points against the previous close of 18379.20 and opened at a low of 18342.20 points. Nifty Future closed with an average movement of 146.60 points and a rise of around 103.15 points and 18482.35 points…!!
On the NSE, the midcap 100 index will rise 0.01% and smallcap 100 index is closing rise 0.26%. Speaking of various sectoral indices only Media, Realty and FMCG stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, December gold opened at Rs.52743, fell from a high of Rs.53051 points to a low of Rs.52703 with a rise of 137 points, a trend of around Rs.52855 and December Silver opened at Rs.62550, fell from a high of Rs.63045 points to a low of Rs.62410, with a rise of 7 points, a trend of around Rs.62477.
Meanwhile, Petroleum and Natural Gas Minister Hardeep Singh Puri has said that the Centre is ready for bringing petrol and diesel under the Goods and Services Tax (GST) regime but it is unlikely that the states will agree to such a move. He said ‘for bringing the petrol and diesel under the GST, the states have to agree. If the states make the move, we are ready. We have been ready all along. That’s my understanding. It is another issue how to implement it. ‘
However, the minister pointed out that it is unlikely that the states will agree to such a move as liquor and energy are revenue generating items for them. It is not difficult to understand, states get revenue out of this. Liquor and energy are two things that generate revenue. It is only the Central government which is worried about inflation and other things.
He further said India has been able to insulate itself from the rising fuel prices by taking a number of steps, including reducing the excise duty by the Centre. He said ‘there are some countries in our neighbourhood which have fuel shortages, and prices are exorbitant. But we did not have shortages even in the remote areas of the country. It has been a very strong navigation at the level of the Centre and the states. What will happen in future it is difficult to say.’
Technically, the important key resistances are placed in Nifty future are at 18505 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 18575 – 18606 levels. Immediate support is placed at 18404 – 18373 levels.