India's GDP growth has shown a consistent growth in the April-June quarter too. India's economy grew faster than expected at 8.8% in June quarter from a year earlier. This has been achieved through higher manufacturing activity in the country and strong demand from the consumer segment. A latest report shows that the government expects the economy to expand around 8.5 percent, much faster than an annual growth of 7.4 percent a year ago.
The growth in the core sectors can maintain its momentum because of strong monsoon. India has received 719.9 mm rainfall till September 1st against normal 724.6 mm, a short fall of just 1%, will help the food inflation to decline at a faster pace. The prices of spices and other essential commodities are showing weak formations. The core concern of the government was inflation and many economic monitory tightening reforms can be seen on virtue of decline in commodity prices, will cause low yield for the government securities.
Surprise
August auto sales figures came out with a big surprise. It was beyond the expectation of analysts and the prices of these companies stocks are looking very attractive at current levels with Maruti, Mahindra and Mahindra, TVS motors offering value for investments.
Precious metals like gold and silver are looking very exciting. The demand is increasing from the investors, especially from the Gold Exchange Traded Funds, which are traded on an organized exchange like NSE and BSE. ETF can be bought and sold in one gram or even less than a fraction of one gram. An investor who has a trading account with a stockbroker can use his account for the purchases and sales of gold ETF.
Appetite
The appetite for the gold ETF is increasing and more demand is being generated from both retail investors and large high net worth investors. The demand for gold ornaments has come down during this season due to monsoon, but can pick up in coming days ahead of the festival season like Diwali and Christmas. The precious yellow metal is all set to break the previous high of $1264.90 and may break even $1300 levels. The increased demand for gold can also lift the price of silver and it can move above $20 mark sooner than later.
Investments in platinum ornaments also can be considered, the precious metals industrial demand may increase multifold because of higher auto sales across the globe. Platinum is used as a catalyst in the diesel engine. Its industrial demand overshoots the demand from jewellers. Precious metals prices usually lift the sentiments on the non-banking financial companies which specialise in gold loans and gem and jewellery stocks like Mahindra and Mahindra finance, Titan and Gitanjali Gem etcetera. On the general investment category, Talwaker and Sintex are looking very explosive on charts.
Floods
Contrary to our growth story, our neighboring country, Pakistan is facing a critical flood situation. Millions of people are affected by the worst hit flood in the areas including Punjab and Sindh. Rice is not the staple diet of the Pakistani, but it is a major source of revenue for the country. It is the second largest exporter and the reduction in rice exports are expected to have an effect on Pakistan's balance of payments. The shortfall of rice export will offer an opportunity for Indian rice exporters to a certain extent.
Companies like Kohinoor Foods and KRBL are going to benefit out of it. For the coming week, domestic cues are looking very bright except the international markets like the U.S. and Europe. Nifty has strong support at 5345 and it has resistance at 5565. A break above or below can give a major direction for the market. The writer is the technical and derivatives research head of Geojit BNP Paribas Financial Services Ltd. Geojit BNP Paribas has membership in, and is listed on, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). BNP Paribas Securities India Private Limited is the company's joint venture with BNP Paribas for institutional brokerage. He is the author of Financial Services And Systems, Option Trading: Bear Market Strategies, published by Tata McGraw Hill. Disclaimer: No financial information whatsoever published anywhere in this newspaper should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is for educational and information purposes only and under no circumstances should be used for actual trading or making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment or trading decisions, based on information published here. Any reader taking decisions based on any information published here does so entirely at his or her risk | 
