Dear Trader…
Indian equity benchmarks ended the
Friday’s trade on quiet note as traders remain worried over the economic impact
of the second wave of COVID-19 and lockdowns and restrictions in various
states. The Maharashtra government has extended the lockdown-like restrictions
in the state till June 1 to break the chain of COVID-19. However, drop in Covid
cases limit the downside.
India reported a dip in fresh Covid
cases to below 3.5 lakh mark at 3,43,122. This was lower than Wednesday’s
figure of 3,62,720 cases. However, traders took some support from IIP and CPI
numbers. India’s factory output climbed 22.4 per cent in March, benefiting from
the base effect of the lockdown-marred month a year back as well as a
turnaround in the manufacturing sector, while retail inflation slipped to a
three-month low of 4.29 per cent in April. Investors are eyeing WPI inflation
data for April slated to be declared later in the day.
Nifty futures opened at 14710.00
points against the previous close of 14710.05 and opened at a low of 14620.00
points. Nifty Future closed with an average movement of 135.95 points and a
rise of around 7.45 points and 14717.50 points .. !!!
On the NSE, the midcap 100 index
will decline 1.64% and smallcap 100 index is closing rise 1.48%. As far as
various sectoral indices are concerned, only FMCG stocks saw gains on the NSE,
while all other sectoral indices closed lower.
At the start of intra-day trading,
June gold opened at Rs.47368, fell from a high of Rs.47670 points to a low of
Rs.47337, with a rise of 169 points, a trend of around Rs.47607 and July Silver
opened at Rs.70355, fell from a high of Rs.71146 points to a low of Rs.70085,
with a rise of 546 points, a trend of around Rs.71019..!!
Retailers Association of India (RAI)
said workers and businesses in the retail industry are in need of urgent
support as the restrictions to combat the second wave of the COVID-19 pandemic
has hit them hard. With the days of the lockdown continuing to extend in
various parts of the country, RAI said it is getting increasingly difficult for
retailers to retain employees and to keep their businesses afloat, and there is
a need to inject capital into the industry.
We expect volatility to continue
until there is clarity over the lockdown situation and availability of
vaccines. The earnings season would further add to the choppiness ahead so we
suggest investors maintaining stock-specific trading approach.
Technically, the important key resistances are placed at 14606 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 14808 – 14888 levels. Immediate support is placed at 14577 – 14505 levels.
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