Advertisement

  • News
  • Columns
  • Interviews
  • BW Communities
  • Events
  • BW TV
  • Subscribe to Print
  • Editorial Calendar 19-20
BW Businessworld

Stock Market Daily Updates: 4 May 2021

Traders remained cautious on account of persistent rise in the second wave of Covid-19 cases, increasing death cases and extended partial lockdown.

Photo Credit :

1606450823_De38V6_2020_11_27T041732Z_1_LYNXMPEGAQ049_RTROPTP_4_GLOBAL_MARKETS_INDIA.JPG

Dear Trader…

Markets started the day with a gap-down opening as NDA’s sub-par performance in West Bengal assembly election and possibility of emergence of strong opposition from alliance of regional parties to fight against NDA weighed on investors sentiments. 

Traders remained cautious on account of persistent rise in the second wave of Covid-19 cases, increasing death cases and extended partial lockdown. Some cautiousness came in as snapping their six-month buying spree, foreign investors turned net sellers in April and pulled out Rs 9,659 crore from Indian equities, spooked by the intense second wave of coronavirus and its fallout on the economy. 

Market participants got worried, after India's manufacturing sector activity was largely flat in April, as rates of growth for new orders and output eased to eight-month lows amid the intensification of the COVID-19 crisis. The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) was at 55.5 in April, little changed from March's reading of 55.4.

FII-foreign institutional investors, foreign portfolio investors-FPIs, on Monday saw a net sale of Rs 2289.46 crore in the cash segment. A total of Rs 6562.64 crore was sold against a total purchase of Rs 4273.18 crore. DII-domestic institutional investors today saw a net purchase of Rs 552.92 crore in the cash segment. A total of Rs 3813.34 crore was sold against a total purchase of Rs 4366.26 crore.

Markets may stay volatile after assembly election result of four states and one union territory. Trends in the election results indicate TMC retained power with two-thirds majority in West Bengal, Left while the BJP have crossed the majority mark in Assam and Left Democratic Front in Kerala. Investors will also track Markit Manufacturing PMI data scheduled to be out later in the day. There will be some cautiousness as snapping their six-month buying spree.

Some support will come as the goods and services tax (GST) collections touched a record high at Rs 1.41 trillion in April, surpassing the Rs one trillion mark for the seventh straight month in a row during 2020-21. Also, the commerce ministry's preliminary data showed that India's exports in April jumped nearly three-folds to $30.21 billion from $10.17 billion in the same month last year. 

There will be some buzz in power stocks with power ministry data showing that power consumption in the country grew 41 per cent in April to 119.27 billion units (BU) in the same month last year, showing robust recovery in industrial and commercial demand of electricity. There will be some reaction in coal industry stocks with a private report that India's coal import is expected to be subdued in coming months on account of various factors like prevailing Covid situation, high coal stock in the system and higher international prices.

Technically, the important key resistances are placed at 14676 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 14747 – 14808 levels. Immediate support is placed at 14606 - 14474 levels.

Nifty Future closed @ 14685 as on 03.05.2021

Nifty Future has resistance at 14737 – 14777 Point; above which other resistance levels are at 14808 – 14838 Point with highly Volatile Trend,

Nifty Future has Downside support levels are at 14676 – 14606 Point; below14606 Point, other support levels are at 14575 - 14505 Point.

I am positive for the next bullish trend only above @ 14838 Point but be with the trend. Let the market decide further moves. 

As we are saying from many days, Buying is suggested in falls only...and it’s still a better strategy in the given Scenario, regarding Long term positions, it is preferable to remain cautious now...!!

If Nifty Future crosses @ 14838 Point, again then the upper side target is quite high and it may touch @ 14888 Point in the short term.

Bank Nifty Future closed @ 32655 as on 03.05.2021

Bank Nifty Future has resistance at 32808 – 32888 Point; above which other resistance levels are at 32930 – 33008 Point with highly Volatile Trend,

Bank Nifty Future has Downside support levels are at 32606 – 32474 Point; below32474 Point, other support levels are at 32272 – 32088 Point.

I am positive for the next bullish trend only above @ 33008 Point but be with the trend. Let the market decide further moves. 

As we are saying from many days, Buying is suggested in falls only...and it’s still a better strategy in the given Scenario, regarding Long term positions, it is preferable to remain cautious now...!!

If Bank Nifty Future crosses @ 33008 Point, again then the upper side target is quite high and it may touch @ 33202 Point in the short term.

Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.


Tags assigned to this article:
sensex stockmarket Stock Market Daily Updates

Nikhil Bhatt | Research Analyst - SEBI

The author is a well established entrepreneur having a more than 16 years of experience in the field of stock market and financial management.

More From The Author >>