Ease in lock down Measures, Lifted Wall Street- How Nifty 50 will react today?

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Key Reasons that will decide Nifty 50 direction.

  • Easing trade tension between US & China
  • Reopening of economies around the world.
  • High U.S. unemployment data revealed on Friday
  • All three Indices in U.S. are closed in Positive.
  • Asian Markets are trading in green territory this morning.
  • Indian Government is planning for second economical stimulus for MSME sector as well as service sector.
  • SGX Nifty is suggesting a positive start.

Nifty 50
  • Easing US & China Trade Tension : U.S. Markets surged on the back of easing trade Tension between two powerful nations. On Thursday, U.S Trade Negotiator Robert Lighthizer & U.S Treasury Secretary Steven Mnuchin held a phone call with Chinese counterpart Liu He. Both countries agrees to strengthen macro economic & public health cooperation. This lifted the positive sentiment in U.S. Markets.
  • Re-opening Economies: Many nations have lifted the restrictions on economical activities around the world. Recent comment from Italy Prime Minister Giuseppe Conte also suggest that the economy will start easing from lock down due to pandemic.
  • U.S. Unemployment Data: A recent report suggest that 20.5 million jobs were eliminated last month. The economy unemployment rate stood at 14.5% which is 50 months low.

U.S Markets

  • Dow Jones Industrial Average increased by 455.43 points, or 1.91%, close at 24,331.32.
  • The S&P 500 seen upside of 48.61 points, or 1.69%, ends at 2929.80.
  • Nasdaq Composite Index increased by 141.66 points, or 1.58%, close at 9,121.32.

Asian Markets In Morning

IndicesCurrent ValuePrev. Close% Change
Nikkei 22520479.5920179.091.49%
Straits Times2603.572591.880.45%
Hang Seng  24723.9924230.172.04%
Taiwan Weighted11034.5710921.421.21%
Kospi1949.501945.820.19%
Jakarta Composite4655.974597.431.27%
Shanghai Composite2907.342895.341.27%
SGX Nifty 935592561.07%
Time of data collection: 8.07A.M

Nifty 50 outlook for the day.

  • SGX Nifty is suggesting that Indian Markets will start at around 9350 level. The surge in U.S Markets have lifted the sentiment for the day. So keeping this in view our strategy should be “Buy on Dip”.
  • Also Indian market has a positive news, Government is planning to unveil second stimulus package to support MSME& Service sector. The source of this information is economic times.
  • So we recommend you to go buy Nifty Future at around 9300 level and a target of 9450 level. Stop loss at 9250 level.
Nifty 50
Nifty Daily chart

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