Dear Trader…
Markets pared some of their gains
but continued to trade in positive terrain in today session amid buying in blue
chip stocks from across various sectors. Traders were getting solace as
country’s daily COVID-19 cases stayed below the 300,000-mark for more than a
week.
Adding optimism, RBI data showed the
country’s foreign exchange reserves rose by $563 million to reach $590.028
billion in the week ended May 14. However, bourses trimmed some of their gains
as overseas investors withdrew Rs 4,444 crore from Indian markets in May so far
amid concerns over the second wave of the coronavirus pandemic and its possible
impact on the Indian economy.
Nifty futures opened at 15230.05
points against the previous close of 15206.20 and opened at a low of 15150.00
points. Nifty Future closed with an average movement of 108.90 points and a
decline of around 16.20 points and 15190.00 points .. !!!
On the NSE, the midcap 100 index
will rise 0.67% and smallcap 100 index is closing rise 1.00%. Speaking of
various sectoral indices, only FMCG and metal 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.48450, fell from a high of Rs.48622 points to a low of
Rs.48368, with a rise of 125 points, a trend of around Rs.48529 and July Silver
opened at Rs.71517, fell from a high of Rs.71744 points to a low of Rs.71200,
with a decline of 498 points, a trend of around Rs.71547..!!
Inspite of the soft global cues,
market managed to hold well and carried the bullish momentum that we had seen
during the end of last last week. Although the indices did not post significant
gains on the board, the stock specific momentum continued with a positive bias.
There are no reversal signs and thus, the breakout seen in the indices during
last week remains valid and hence the undertone remains positive.
Traders are advised to look for
buying opportunities in intraday dips and trade with a positive bias. One
should continue to focus more on a stock specific approach but be fussy in
stock selection.
In India Covid-19 2nd wave cases are
also coming down and it seems to be the peak of the 2nd wave is behind us as of
now and the state government will start reopening up the economy gradually. We
expect the market to be volatile in the coming days.
Technically, the important key resistances are placed at 15008 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 15272 – 15303 levels. Immediate support is placed at 14970 – 14888 levels.
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