Dear
Trader…
As
expected, Indian shares rebounded on Thursday to close higher, helped by metal
and auto stocks, while a second surge in domestic corona virus cases and fears
over its impact on the economy capped gains. The pullback is also supported by
a strong rally happening in global markets.
Sentiments
were upbeat with US President Joe Biden’s decision to back waiving intellectual
property rights on vaccines. This will quicken the vaccination process enabling
countries like India to come out of the pandemic faster. However upside remain
capped as data on daily infections indicate a rise, though mild, after 5 days
of decline. Also, lockdowns & restrictions on mobility are increasing,
impacting the economic recovery.
On
the global front, Asian markets were trading mostly higher as investors
welcomed a strong jobs report from the United States that reinforced optimism
that the world’s top economy is well on the recovery track.
Nifty
futures opened at 14717.95 points against the previous close of 14679.10 and
opened at a low of 14657.45 points. Nifty Future closed with an average
movement of 130.55 points and a rise of around 101.35 points and 14780.45
points .. !!!
On
the NSE, the midcap 100 index will rise 0.94% and smallcap 100 index is closing
rise 0.70%. Speaking of various sectoral indices, only PSU Bank and Pharma
stocks were seen selling on the NSE, while all other sectoral indices closed
higher.
At
the start of intra-day trading, june gold opened at Rs.47072, fell from a high
of Rs.47263 points to a low of Rs.47000, with a rise of 42 points, a trend of
around Rs.47042 and May Silver opened at Rs.69692, fell from a high of Rs.70496
points to a low of Rs.69651, with a rise of 356 points, a trend of around
Rs.69975..!!
S&P
Global Ratings has said an ongoing second wave of COVID-19 infections in India
could hurt its near-term economic recovery and possibly diminish growth for the
full year. Shaun Roache, chief economist, Asia Pacific at S&P, said India’s
COVID wave will inevitably hit the recovery and could push growth below 10%.
The longer it takes to regain control, the greater the permanent damage,
especially as policy space is limited.
S&P
currently has a ‘BBB-‘ rating on India with a stable outlook, the lowest
investment grade and expects India’s economy to grow 11% in the year that
started April 1 following a projected record contraction of 8% in the previous
year. Roche said the shock of the first quarter is likely to carry on through
the rest of the year and the impact on the GDP could be around one to three
percentage points.
The
rating agency said India had been showing strong recovery momentum since
September last year and until March/April of 2021 before the massive surge in
cases prompted localised lockdowns and mobility restrictions
Technically, the important key resistances are placed at 14808 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 14888 – 14909 levels. Immediate support is placed at 14676 – 14606 levels.
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