Nifty 50 Will Open With Deep Red, After a Sell off in Wall Street- Suggest SGX Nifty.

Nifty

Key Reasons For Nifty 50 Seeing Red Opening

  • High Unemployment Data in U.S, tapered the Investor Confidence.
  • Wall Street Indices closed in red, Nasdaq was hit highest with more than 1% cut.
  • Asian Screen is also red at opening.
  • Indian core sector output contracted by 6.5% in the month of March.
  • SGX Nifty is trading with deep cut, suggesting deep cut in Nifty 50.

Nifty 50
  • Stocks in U.S markets closed in red territory after a weak unemployment data. A report by U.S. Labor Department suggest that last week 3.8 million Americans have applied for unemployment claim. Overall the total unemployment claim in U.S. stood at 30 million in last six weeks.
  • Even with decline on Thursday, Stocks in U.S had best month since January 1987. Most of the indices have seen a surge in the range of 13%-15% in April 2020.
  • The rally has surprised most of the investors as economies around the world is stand still. All credit goes to policy makers for announcing economical packages to add liquidity in the markets.

U.S Markets

  • Dow Jones Industrial Average declined by 288.14 points, or 1.17%, close at 24,345.72.
  • The S&P 500 seen downside of 27.08 points, or 0.92%, ends at 2912.43
  • Nasdaq Composite Index decreased by 25.16 points, or 0.28%, close at 8,889.55.

Global Markets

IndicesCurrent ValuePrev. Close% Change
FTSE (Apr 30)5901.216115.25-3.50%
CAC (Apr 30)4572.184671.11-2.12%
DAX (Apr 30)10861.6411107.74-2.22%
Nikkei (May 1)19720.7720193.69-2.34%
SGX Nifty (May 1)94089785-3.85%
Data : Money Control

Nifty 50 outlook for the day.

  • SGX Nifty is indicating a deep cut for our markets at opening. This is happening on the back of U.S. employment data and India’s Core sector contraction of 6.5% in the month of March.
  • Yesterday Nifty has seen a continuation of uptrend from its low of 7500 level. It closed at 9859 level with a gain of more than 3%. So shorting the market is not recommended as chart suggesting that still upside of nifty is intact.
image 1
Data: Icharts
  • This rally will fizzle out only if Nifty start trading at 9200 level, till then the position should be on upside.
  • Today our strategy is to go long on any strength with a target of 9600 level and stop loss at 9300 level. Trade only on sign of rebound as most of the markets are weak.

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