Market saw
selling pressure at higher levels on Thursday, as nifty settled September
series futures & options contracts at below 11,000. Domestic stock markets
started Thursday's session on a lackluster amid cautious trade by investors
ahead of expiry of monthly derivatives contracts. At 2:18 pm, the Nifty was
trading 77 points, lower at 10976 while the Sensex was down 197 points, at
36344. At the close of market hours,
the Sensex closed down 218 points at 36324, while the Nifty was lower by 76 points
at 10977. The Sensex concluded the session over 200 points lower. Market is struggling mainly due to
sentimental dent despite reaffirmation of liquidity support by the Reserve bank
of India and other related agencies. The continuous fall in NBFC and banking
counters is adding to that pressure. Weakness in Asian peers after the Federal Reserve announced
a hike in key interest rate overnight also dampened sentiment in the domestic
markets. However, the government's move on customs duty applicable to 19 items
eased some concerns on the current account deficit front, and limited the
down-slide. The Reserve Bank of India
(RBI) eased mandatory cash requirement rules for banks on Thursday. The central bank also said it would provide "durable liquidity" amid growing worries of a potential credit crunch in the economy. Thursday also marked the expiry of derivatives - or futures and options - contracts for the month of September. The move by the central bank came a day after the government announced hikes in import duties on 19 items, including jet fuel and air conditioners, with an aim to narrow the current account deficit. Key hurdles, which are near the 10975-11150 zones, have kept the pullback in check in the last couple of sessions. As long as it trades below this zone, Nifty is likely to drift lower. The immediate support is placed at 10930-10900 while resistance is seen at 11200/11250.
(RBI) eased mandatory cash requirement rules for banks on Thursday. The central bank also said it would provide "durable liquidity" amid growing worries of a potential credit crunch in the economy. Thursday also marked the expiry of derivatives - or futures and options - contracts for the month of September. The move by the central bank came a day after the government announced hikes in import duties on 19 items, including jet fuel and air conditioners, with an aim to narrow the current account deficit. Key hurdles, which are near the 10975-11150 zones, have kept the pullback in check in the last couple of sessions. As long as it trades below this zone, Nifty is likely to drift lower. The immediate support is placed at 10930-10900 while resistance is seen at 11200/11250.
Resistance: 11200, 11250, 11300
Support: 10950, 10930, 10900
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