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. While trading
precisely on the expected lines, Nifty saw a strong selloff below at 14808
higher levels due to profit booking amid growing concerns over a spike in
corona virus infections and recorded fresh Covid-19 cases.
The Indian
stock market closed lower on Friday. due to the Covid-19 cases are steadily
rising and the severely affected state is considered a terrible lockdown of
recovery in Asia’s third largest economy. The negative territory of the day has
all the major sectoral indices with cautious declines following weak global
signals, the Indian stock market is currently at high buying risk and COVID-19
cases also saw a sharp rise.
Nifty
futures opened at 14802.00 points against the previous close of 14932.25 and
opened at a low of 14660.30 points. Nifty Future closed with an average
movement of 229.70 points and a decline of around 271.90 points and 14932.25
points .. !!!
On the NSE,
the midcap 100 index will decline 0.37% and smallcap 100 index is closing
decline 0.40%. As far as various sectoral indices are concerned, only pharma
stocks were seen on the NSE, while all other sectoral indices closed lower.
At the start
of intra-day trading, june gold opened at Rs.46743, fell from a high of
Rs.46815 points to a low of Rs.46620, with a rise of 50 points, a trend of
around Rs.46776 and May Silver opened at Rs.67395, fell from a high of Rs.67614
points to a low of Rs.67348, with a decline of 74 points, a trend of around
Rs.67400..!!
Meanwhile,
in order to pump up liquidity, the Reserve Bank of India (RBI) is going to
conduct a one-day ‘Open Market Operations’ (OMO) on May 6 to simultaneous
purchase and sell government securities. The OMO session will see simultaneous
purchase and sale of government securities worth Rs 10,000 crore.
Under this
OMO, the RBI will sell short-term securities worth Rs 10,000 crore maturing in
the current band next year and purchase long-term securities of an equal amount
maturing between 2026 and 2030.
The RBI said
‘on a review of current liquidity and financial conditions, it has been decided
to conduct simultaneous purchase and sale of Government securities under OMO
for an aggregate amount of Rs 10,000 crore each on May 6, 2021’.
The market
is booming due to the success of vaccines and the steady influx of FIIs, but
there have been corrections in the bullish phase in the past as well. This time
too, along with the positive factors, the bullish trade in stocks is likely to
ease, so caution will be required. In the near term, positive bias is expected
to continue, however, rising COVID cases in India would remain a key concern.
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 14737 – 14808 levels. Immediate support is placed at 14474 – 14404 levels.
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