Dear Trader…
Bears were holding a tight grip over the Dalal Street in today deals, with both Sensex and Nifty falling over a percent, on the back of negative cues from other Asian markets. Heavy selling at Utilities and Power counters kept equity indices down, while Tata Steel fell the most on the BSE. Sentiments remained negative as RBI Monetary Policy Committee (MPC) member Jayanth R Varma said that India’s economic growth is now ‘extremely fragile’ and needs all the support that it can get, as private consumption and capital investment are yet to pick up.
Nifty futures opened at 18055.05 points against the previous close of 18170.35 and opened at a low of 17831.20 points. Nifty Future closed with an average movement of 283.80 points and a decline of around 306.45 points and 17863.90 points…!!
On the NSE, the midcap 100 index will decline 3.76% and smallcap 100 index is closing decline 4.72%. Speaking of various sectoral indices, PSU Bank, Media, Metal, Realty and Auto stocks saw heavy selling on the NSE, while all other sectoral indices also closed lower.
At the start of intra-day trading, February gold opened at Rs.54517 fell from a high of Rs.54670 points to a low of Rs.54441 with a rise of 89 points, a trend of around Rs.54610 and March Silver opened at Rs.68821, fell from a high of Rs.69190 points to a low of Rs.68700, with a rise of 403 points, a trend of around Rs.68923.
Meanwhile, RBI Monetary Policy Committee (MPC) member Jayanth R Varma has said that India’s economic growth is now ‘extremely fragile’ and needs all the support that it can get, as private consumption and capital investment are yet to pick up. He further said out of the four engines of growth for the economy, exports and government spending supported the Indian economy through the pandemic, but other engines need to pick up the baton now.
Varma said ‘I like to think in terms of the four engines of growth for the economy: exports, government spending, capital investment and private consumption. While exports cannot be the main driver of growth because of the global slowdown, government spending is necessarily limited by fiscal constraints.’ Observing that experts are waiting for many years for private investment to pick up the slack, he said that concerns about future growth prospects appear to be deterring capital investment. The critical question is whether the fourth engine of private consumption will remain buoyant after the pent-up demand dissipates over the coming months. He said ‘I, therefore, fear that economic growth is now extremely fragile and needs all the support that it can get.’
Varma pointed out that India is enjoying the benefits of a demographic dividend, and it, therefore, needs high growth to provide employment opportunities for the young people joining the workforce. He said ‘I do not fear that India will grow slower than the rest of the world. I fear that we may grow slower than our own aspirations and our own needs.’
Technically, the important key resistances are placed in Nifty future are at 17939 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 18008 – 18088 levels. Immediate support is placed at 17676 – 17404 levels.
Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in
