Key Reasons For Nifty 50 Seeing Red Opening
- A rising rift between U.S. & China over covid-19.
- Trump Says” There is high evidence that Covid-19 emerged from Wuhan Lab”
- May 1 was the worst day in terms of maximum deaths reported in the U.S.
- This will have an adverse affect on reopening economy and will
- shake the confidence.
- Asian Markets are trading weak.
- SGX Nifty is showing deep cut.
- India’s Core sector contraction of 6.5% in the month of March.
- Indian Economy will face 3rd lock down with restricted economical activities.
- Many states in US have already reopened their economies with restricted economical activities. May 1 was the worst day in terms of maximum deaths due to covid-19 in US. The death toll was 2909 surpassing earlier high of 2471 number reported on 23rd April 2020. Not a good sign for reopening economy.
- Trump tough covid-19 comment on China is another reason for the slide of US Markets on Friday. He sees high evidence of China lab in spreading Covid-19 virus.
- Gilead Sciences drug get emergency FDA approval for the cure of covid-19 patients after finding some positive outcomes. Still research is underway to find Covid-19 Drug.
- Dow Jones Industrial Average declined by 622.03 points, or 2.55%, close at 23,723.69.
- The S&P 500 seen downside of 81.72 points, or 2.81%, ends at 2830.71.
- Nasdaq Composite Index decreased by 284.60 points, or 3.20%, close at 8,604.95.
|Indices||Current Value||Prev. Close||% Change|
|Jakarta Composite (Apr 21)||4615.62||4716.4||-2.14%|
Nifty 50 outlook for the day.
- SGX Nifty is indicating a weak opening for our markets with deep cuts. This is on the back of Global weakness as well as sluggish Indian economical data in which India’s Core sector contraction of 6.5% in the month of March.
- Today Nifty will open with deep cut. An important level to watch is 9200 level and in case it hold this level then one can use this dip as an opportunity to “Buy” Nifty future. Since Nifty is opening with a cut of 300-400 points, the risk -reward ratio is toward long side. You have to wait for buy signal on chart. One can go long near 9250-9300 level and look for target 9400. Stop loss below 9200 level
- This rally will fizzle out only if Nifty start trading at 9200 level, till then the position should be on upside.
- We hold the similar view as on Friday report.