Dear
Trader…
Indian
equity benchmarks continued their weak trade in session with Sensex and Nifty
trading below their psychological levels respectively. Sentiments were under
pressure after India’s manufacturing sector activity was largely flat in April,
as rates of growth for new orders and output eased to eight-month lows amid the
intensification of the COVID-19 crisis.
The
seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index
(PMI) was at 55.5 in April, little changed from March’s reading of 55.4.
Meanwhile, according to RBI data India Inc’s external commercial borrowings
jumped by over 24 per cent to $9.23 billion in March this year. Indian firms
had raised $7.44 billion from the foreign market in the same period a year ago.
Nifty
futures opened at 14541.65 points against the previous close of 14690.80 and
opened at a low of 14461.90 points. Nifty Future closed with an average
movement of 282.90 points and a rise of around 9.20 points and 14700.00 points
.. !!!
On the NSE,
the midcap 100 index will rise 0.28% and smallcap 100 index is closing rise
1.09%. Speaking of various sectoral indices, the NSE saw sell-off in fin
service, bank, media and realty stocks, while all other sectoral indices closed
higher.
At the start
of intra-day trading, june gold opened at Rs.46921, fell from a high of
Rs.47197 points to a low of Rs.46921, with a rise of 247 points, a trend of
around Rs.46984 and May Silver opened at Rs.67925, fell from a high of Rs.68315
points to a low of Rs.67768, with a rise of 736 points, a trend of around
Rs.68260..!!
Foreign
investors turned net sellers in April and pulled out Rs 9,659 crore from Indian
equities, spooked by the intense second wave of coronavirus and its fallout on
the economy. However, some respite may come later in the day with the data
released by the commerce and industry ministry showing that the growth of
India’s eight key infrastructure segments reached a 32-month high of 6.8 per
cent in March compared to a year earlier, mainly due to a low base.
Traders may
take note of report that the government and the Reserve Bank of India are
considering relief measures for businesses as India continues to battle the
deadly second wave of the Covid-19 pandemic. Meanwhile, India reported a
decline in the number of fresh Covid-19 cases. With 370,059 infections in the
last 24 hours, the cumulative caseload stands at 19,919,715, Worldometer
showed.
Banking
stocks will be in focus as the Reserve Bank has decided to review and
strengthen the Risk Based Supervision (RBS) of the banking sector with a view
to enable financial sector players to address the emerging challenges. Shares
of auto companies will be in focus as investors will react to the auto sales
figures for the month of April. There will be lots of important earnings
announcements too, to keep the markets in action.
Technically, the important key resistances are placed at 14676 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 14747 – 14808 levels. Immediate support is placed at 14606 – 14474 levels.
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