MCX gold prices to trade higher next week, support at Rs 49500-50000; investors must buy on dips By Bhavik Patel Gold market has come unscathed after an aggressive rate hike by the US Fed since 1994 as they raised the interest rate by 75 bps. $1800 seems to be good support as gold gained $22 after the Fed released its statement. Gold market was not dented after the US Fed committed to take rates by 3.4% by year end and 3.8% by 2023. Market, however, took a breather as US Fed commentary was less hawkish than anticipated as Powell auto-piloted rate hike by 25 bps after US Fed raised interest rate to 2.5%. Currently rates are at 1.5%-1.75%. The rate hike of 75 bps was expected by the market as US inflation is running at 40 year high with no sign of reversing. July rate hike by 75 bps is also factored in by the market. The only negative trigger for gold would be if there is truce between Russia and Ukraine or if real interest rate rises above 2%. Although the Federal Reserve’s aggressive monetary policy stance will start to drive real yields higher, real interest rates wouldn’t be high enough to offer investors significant protection from rising volatility and economic uncertainty. But if the real interest rate rises above 2%, then gold will be unattractive to investors and we may see a sell off in gold. In MCX, Gold has support around 49500-50000 and has become short term support. 52000 is the resistance. The main trigger for gold this week already is over and gold has come unscathed from it. Now we may see gold trade higher albeit with a slow pace. Above 52000 and $1860 is the breakout for gold. We would recommend investors to buy on dips with stoploss of 49500 and upside target of 52000-52500. (Bhavik Patel is a commodity and currency analyst at Tradebull Securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)
The move had also prompted the country’s largest organised retailer Reliance Retail to step into the value retail segment with Yousta, which was announced on Thursday. Like Intune, Yousta began its operations in Hyderabad, with plans to expand across the country. Intune has three stores – two in Hyderabad and one in Dombivli, near Mumbai, with plans to add another three more outlets in the coming months.
Nair had admitted on a recent earnings call that the apparel segment in general was witnessing moderation and that the value retail foray by Shoppers Stop could help the company tap into the growing trend for affordable fashion and lifestyle products, aiding sales growth.
That was an important statement for Shoppers Stop, which reported a nearly 37% year-on-year drop in net profit to Rs 14.5 crore in the June quarter of FY24, even as revenue grew only 4.8% versus the previous year to nearly Rs 994 crore.
On a yearly basis, the company had last reported a net profit of nearly Rs 114 crore in FY23 after three consecutive years of loss between FY20 and FY22 due to the Covid-19 pandemic. FY23 topline also jumped nearly 60% year-on-year to Rs 4,022 crore, the highest in six years, its results showed.