Be wary of level 9,400 today!

South African theologian Desmond Tutu used to say, “Hope is being able to see that there is light despite all of the darkness.” Yes, the word ‘hope’, which has kept the flame of bulls going on Dalal Street. The market participants are hopeful that Finance Minister is likely to announce a second stimulus package for the economy, impacted by the nationwide lockdown and triggered by Coronavirus pandemic. In Tuesday’s trade, banking and financial stocks helped the markets to close near the day’s high but the depth was missing as only 26 stocks out of Nifty 50 were able to end the day in green. If we go by the early trends of SGX Nifty, it indicates that the market is likely to open with modest gains around 9,433 mark. For the bulls, it’s important to stay and sustain above 9,400 mark and if they manage to hold above 9,400 mark, we believe that a fresh leg of upmove will be in offing.

Asian indices are trading in green in the early deals on Wednesday despite US stocks tapering off from the day’s high in overnight trade. Hong Kong’s Hang Seng is up by 0.73 per cent and China’s Shanghai Composite has gained 0.40 per cent.

Back home, if Monday was a marvellous session for the markets, Tuesday turned out to be a terrific one as the key benchmark indices extended their winning streak for the second straight day in a row. The day started with a gap-up; however, within no time, the markets erased their early gains and oscillated near the neutral line. But gradually, the bulls picked up pace and ended the session with solid gains. Nifty ended the day with gains of 1.06 per cent at the important psychological mark of 9,400 while, BSE Sensex rallied 1.17 per cent and closed convincingly above 32,000 mark. The broader market indices rose in-line with frontline indices, with Nifty Mid-cap adding 1.30 per cent and Nifty Small-cap gaining 0.74 per cent. Talking about the sectoral performance, Nifty Private Bank, Nifty Financial Services and Nifty Bank were the top gainers. On the other hand, Nifty Pharma, Nifty FMCG and Nifty Metal ended as the top losers.

On Wall Street, the initial optimism faded and the major indices ended in a negative terrain. The tech-heavy Nasdaq was the worst performer as it slumped 1.4 per cent. While, Dow dipped 0.1 per cent and S&P 500 lost 0.5 per cent. Optimism fade on Wall Street after US Consumer Confidence data from Conference Board plunged to 86.9 in April, which is its worst mark since 2014. Meanwhile, European indices continued to march ahead and gained for the second straight day on Tuesday, amid hopes of more stimuli from central banks.