Buoyancy to remain on D-Street!

Welcome to the final trading session of the May Series! Markets put up a good show in last trading session and the early trends in SGX Nifty is indicating optimism likely to continue on the D-Street in the final trading session of May series. The key catalyst for such optimism is the overnight cues from Wall Street, Dow and S&P 500 that ended above their important psychological level of 25,000 and 3,000 respectively for the first time since early March.

At the time of writing, the SGX Nifty was up by 68 points and trading at 9,365.50 levels. Due to F&O expiry, volatility could be seen in the markets as the day progresses. However, as long as Nifty stays above its 20-DMA bullish bias persists and resistance could be seen in the 9,350-9,450 zone.

Today, on the earnings front, key stocks such as TVS Motors and Lupin are slated to report their earnings for quarter ended March 2020.

On Thursday, majority of the Asian markets seem trending higher on account of the solid cues from Wall Street as Dow registered its best closing since early March. Further, this was aided by reports indicating big stimulus package measures by Japan. Japan’s Nikkei 225 is leading the charge as it has surged 2.06 per cent and is trading above its 200-DMA, an important watch technical indicator. The China’s Shanghai Composite advanced by 0.73 per cent, whereas the Hong Kong’s Hang Seng has dipped 0.16 per cent.

Asian Markets

Key domestic benchmark indices registered gains of over 3 per cent, making it undoubtedly a wonderful Wednesday on D-Street. Nifty 50 reclaimed its 9,300 mark and closed higher by 286 points. Whereas, Sensex too jumped by 996 points to reclaim its 31,500 level. Though, the start to the day was on a flat note and for the initial hour of the session markets oscillated in a range. But this oscillation was only a warm up before bulls taking the big leap.  And, as the rally started bulls did not look back and the markets ended near day’s high. On the sectoral front, most of the indices closed in green. On the other hand, the broader markets unperformed but closed with some meaningful gains. However, the showstopper of the day was banking and financial stocks as Nifty Bank and Nifty Private Bank jumped over 7 per cent.  Even the advance decline ratio was in the favour of advancers. Out of 1,891 stocks traded on the NSE, 1,059 advanced and 712 declined, while remaining stayed unchanged.

Amid US mortgage applications steadily rising for the sixth straight week, on Wednesday, stocks on Wall Street extended their rally for the second day in a row.  Dow and S&P 500 reclaimed their important psychological levels of 25,000 and 3,000 respectively. Further, both these indices recorded their best closing levels since early March.  Dow surged 2.2 per cent and 27 out of the 30 index members finished in green. The American Express took the lead with a staggering rally of over 7 per cent. S&P 500 advanced by 1.5 per cent, closing above its 200-DMA. The tech-heavy Nasdaq added 0.8 per cent to finish at best closing levels in over three months. On Wednesday European indices too were buoyant, as European Union plan to launch a massive stimulus program for the region’s recovery efforts.

US Markets

Europe Markets

Commodity