May 5, 2021
Time: 8 am
Pre Market Report:
- US markets ended mixed.
- Nasdaq was down, Dow was up.
- Dow was down more than 300 points in the middle of the ssion, recovered entire loss to close marginally higher.
- Asian markets are mixed.
- Singapore detected Indian Mutant of Corona, announced further restrictions.
- China Taiwan Geo Political tension is increasing with Chinese statements.
- Janet Yellen indicated slightly higher interest rates going forward.
- These are the negative news why US markets fell.
- Positive news is that Corona Vaccine program is going on successfully in Developed Nations and most of them lifting the restrictions.
- So "Reopening" of Economy hope increases.
- In fact, in US, maoney is moving from Technology stocks to 'Reopening' stocks.
- That is why Nasdaq was down but Dow was up.
- But Corona picture is totally different in Developing Nations like India.
- India has two additional negatives.
- One, Corona cases, though it has come down slightly, ground reality is still very bad.
- Less number of cases may be attributed to less number of testing.
- Second, FII selling. They keep selling.
- Yesterday they have sold for Rs 1700 crores.
- SGX Nifty hit a low of 14371.
- But right now it is trading around 14580.
- Main reason: RBI Governor speaking to Media.
- Bank Nifty will be in focus as RBI Governor is expected to announce some relief measures.
- Banks have requested for 3 months moratorium.
- Tata Steel is set to declare results today after market hours.
- But the stock has run up already too much, even if there is slight disappointment, stock may fall tomorrow.
- Reliance is trading closer to its support level of 1900.
- So if Banks and Reliance recovers, Nifty can move higher by short covering.
- As usual, markets are likely to be highly volatile.
- The only positive is that India VIX did not shooting up, despite such a big fall yesterday.
- Nifty future may trade between 14480 and 14720.
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