BSE Sensex and Nifty 50 have been staring at a unfavorable opening on Wednesday, as recommended by trends on SGX Nifty. Nifty futures have been trading 76 points or .50 per cent down at 15,084.50 on Singaporean Exchange. Market participants will take cues from COVID infection circumstances, ongoing vaccination drive, Q4 benefits, oil rates, rupee trajectory and other worldwide developments. Global markets have been also seen unfavorable in early trade on Wednesday. Oil rates settled decrease in the earlier session, tumbling from a two-month higher. The market place is probably to continue its positive trend as fresh day-to-day covid circumstances decline and investors are upbeat on reopening of financial activity quickly, stated an analyst. “The earnings season also has been healthy so far, and thus providing support to the market. Even the positive news flows around vaccination front is providing good visibility,” stated Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
Global markets: Stock markets in Hong Kong and South Korea have been closed for a public vacation on Wednesdy. Japan’s Nikkei 225 fell practically one per cent although the Topix index slipped half a per cent. In overnight trade on Wall Street, US stock indices ended with losses. The Dow Jones Industrial Average fell .78 per cent, the S&P 500 lost .85 per cent, and the Nasdaq Composite dropped .56 per cent.
Q4 benefits: Companies such as Indian Oil Corporation, Indiabulls Housing Finance, Endurance Technologies, JK Tyre & Industries, MAS Financial Services, SML Isuzu, Shriram Asset Management, Tanla Platforms, TCI Express, and Zuari Agro Chemicals amongst other people will release quarterly earnings on May 19.
FIIs turn net purchasers of Indian equity: On Tuesday, foreign institutional investors (FIIs) lapped up shares worth Rs 618.49 crore, although domestic institutional investors (DIIs) purchased shares worth Rs 449.52 crore on a net basis in the Indian equity market place.
Technical view: The quick-term trend of Nifty continues to be positive, stated an analyst. “The unfilled opening upside gap and a formation of small positive candle could hint at a possibility of profit booking emerging from the highs. Hence, bulls need to be cautious at the swing highs. Nifty not showing any profit booking in the next couple of sessions could open the next upside levels of 15450-15500 in the near term. Immediate support is placed at 15000 levels,” stated Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Ongoing consolidation to enhance returns for equities: The ongoing consolidation in equities would enhance return prospects for the duration of the second half of 2021, Morgan Stanley stated. Leading indicators relating to fundamentals like development, stability, government policy and RBI policy, and corporate earnings are frequently positive about equity returns, analysts at American brokerage stated.