Heedful week ahead for the markets!

Welcome to a third week of June 2020! Last week Nifty halted its two-week winning streak as it closed the week down by 1.67 per cent, just below the 10,000 level. An interesting observation can be found on the daily chart of Nifty, wherein last week Nifty began the week with open equal to high and ended the week with open is equal to low.  As the smooth sailing which the world market enjoyed over the last couple of weeks is going to meet with the dark clouds of fear amid second wave of coronavirus infections, we can expect volatility to kick in this week. Further, this week, some important data is expected to be released on global as well as domestic front, which could keep market participants on their toes.  

All-in-all, the week is likely to remain cautious for the markets with some important data points up for grabs. Hence, we advise market participants to be watchful and avoid aggressive positions and approach markets on highly selective note.

At 7:51 am, the SGX Nifty was trading down by 43.50 points at 9,856 levels.

Market participants fear amid second-wave of Covid-19 infections, leading Asian markets to trade in negative terrain on the first day of the week. Further, a slew of economic data is slated to be released from China today, keeping market participants cautious.  Japan’s Nikkei 225 is leading the fall on Asian bourses followed by Hong Kong’s Hang Seng and China’s Shanghai Composite.

Asian Markets

The domestic stock market recovered from its initial knee-jerk reaction and managed to close with smart gains on Friday. Sensex and Nifty added 0.72 per cent each to end at 33,781 and 9,972 respectively. However, the trend seems to be diverging in the broader indices with Nifty Mid-cap rallying over a per cent and Nifty Small-cap ended with miniscule loss of 0.11 per cent. On the sectoral front, except for Nifty IT and Nifty Media, all other sectoral indices ended in the green. Nifty Auto and Nifty Realty were the top gainers. The volatility index, India VIX, ascended nearly 4 per cent to 30.82. Advance-decline ratio was even-steven as out of 1912 stock, 942 stock advanced and 903 stocks declined.

On Friday, US markets slightly recovered from its scariest fall which was witnessed on Thursday. This was amid the consumer sentiment index for June showing a better than expected performance, leading to positive sentiment on Wall Street. Regardless of the rebound that was seen on the last week’s final trading session, all three indices on Wall Street marked steep losses for the week. European indices ended Friday’s session on mixed note.

US Markets

Europe Markets

Commodity