Dear Trader…
Indian equity benchmarks were highly volatile, oscillating between gains and losses while managing to close on a positive note on Tuesday. Weakness across sectors pulled the headline indices lower, with utilities, power, capital goods and realty stocks being the biggest drags. The indices opened marginally higher before gyrating between gains and losses, as traders got some support with Minister of State for Finance Pankaj Chaudhary’s statement that India's gross domestic product (GDP) is projected to grow at 9.2 per cent to Rs 147.5 lakh crore in 2021-22.
Key indices were exhibiting high amount of volatility albeit with a negative bias, as traders remained worried after private report stated that E-way bill generation for goods transportation under the goods and services tax (GST) system stood at 6.88 crore in January, down 4% from the previous month, reflecting some slack in trade due to the spread of the Omicron variant of Covid. However, Indian bourses erased initial losses and managed to end in green, as some optimism remained among traders with Union Finance Minister Nirmala Sitharaman’s statement that India will be the fastest-growing economy this year and by the next year, the country will be the fastest-growing economy among the large economies.
Nifty futures opened at 17265.00 points against the previous close of 17218.30 and opened at a low of 17048.20 points. Nifty Future closed with an average movement of 255.80 points and a rise of around 38.35 points and 17256.65 points...!!
On the NSE, the midcap 100 index will decline 0.70% and smallcap 100 index is closing decline 1.72%. Speaking of various sectoral indices only Media, Realty and IT stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, February gold opened at Rs.48270, fell from a high of Rs.48300 points to a low of Rs.48174 with a decline of 3 points, a trend of around Rs.48225 and March Silver opened at Rs.61870, fell from a high of Rs.61920 points to a low of Rs.61525, with a decline of 357 points, a trend of around Rs.61678.
Meanwhile, Minister of State for Finance Bhagwat Karad has said that the banks' gross non-performing assets (GNPAs) have declined to Rs 8,00,463 crore (6.93 per cent) as of September 30, 2021 from Rs 9,33,779 crore (GNPA ratio of 9.07 per cent) as on March 31, 2019. Of this, the share of public sector banks (PSBs) in bad loans proportion has also declined 72 per cent against nearly 80 per cent.
The minister said GNPAs of public sector banks as a proportion to that of scheduled commercial banks (SCBs) have decreased from 79.2 per cent as on March 31, 2019, to 72.3 per cent as on September 9, 2021. However, he said gross NPAs of private sector banks as a proportion of that of SCBs have increased from 19.4 per cent to 24.9 per cent during this period.
Karad also stated that Gross NPAs of deposit-taking NBFCs and non-deposit taking systemically important NBFCs stood at Rs 1,91,413 crore (GNPA ratio of 6.87 per cent) at the end of September 2021.
Technically, the important key resistances are placed in Nifty future are at 17303 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 17333 – 17373 levels. Immediate support is placed at 17077 – 17007 levels.
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