Dear
Trader…
As expected
markets were traded highly negative during the days, we had only mentioned
about the possibility of a selloff at higher levels in the market. higher
levels due to profit booking amid growing concerns over a spike in corona virus
infections and recorded fresh Covid-19 cases.
The rise in
COVID cases and partial lockdowns in various parts of India will hit the GDP
growth of the country, suggest experts. Experts feel that any dip on account of
COVID-19 should be used as a buying opportunity. The recent spike in COVID
cases to 2.7 lakh in just 24 hours, according to the Union Health Ministry on
Monday, will keep investors on the edge for some time but as the situation
stabilises, bulls will be back, suggest experts.
Nifty
futures opened at 14502.30 points against the previous close of 14374.15 and
opened at a low of 14225.55 points. Nifty Future closed with an average
movement of 309.95 points and a decline of around 84.15 points and 14290.00
points .. !!!
On the NSE,
the midcap 100 index will rise 0.30% and smallcap 100 index is closing rise
1.00%. Speaking of various sectoral indices, the NSE saw gains in auto, media,
metal, pharma and realty stocks, while all other sectoral indices closed lower.
At the start
of intra-day trading, june gold opened at Rs.47424, fell from a high of Rs.47439
points to a low of Rs.47128, with a rise of 14 points, a trend of around Rs.47407
and May Silver opened at Rs.68476, fell from a high of Rs.68780 points to a low
of Rs.68140, with a rise of 274 points, a trend of around Rs.68598..!!
Amidst the
surge in COVID-19 cases, the Delhi government announced a six-day complete
lockdown from 10 pm April 19 till 5 am on April 26. Maharashtra, Uttar Pradesh,
Delhi and Rajasthan are among the 10 states that account for 78.58 percent of
the new COVID-19 cases reported in a day.
We continue to maintain our cautious stance citing rising COVID cases
and strict restrictions imposed by the various state government in India which
may hamper economic recovery. However, progress on vaccines and supportive
global markets may cap the damage. Amid all, the prevailing earnings season
will remain on the participants’ radar for cues. To sum it up, we expect
volatility to remain high so traders should prefer low beta counters and limit
leveraged positions until the market stabilises.
We still maintain our
stance that the trend is volatile and pullback rally is in offing and selling
may emerge. Hence trader needs to be cautious at current level.
Technically, the important key resistances are placed at 14373 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 14404 – 14474 levels. Immediate support is placed at 14188 – 14008 levels.
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