Markets may start on a positive note but stay cautious on higher levels!

SGX Nifty indicates that the markets may have a firm start this Wednesday but like Tuesday, it could face a resistance soon. The range for the day is likely to be 8,800-9,050. Until and unless Nifty does not decisively breach this range on either side, we could see it staying within the boundaries of the range mentioned. All eyes on D-Street today will be on the rights issue of the largest listed company by market capitalisation-Reliance Industries as it would be interesting to see whether Reliance’s rights issue sails through or not, particularly the retail investor’s reaction, which would be keenly gauged in the midst of the negativity.

On the earnings front, a total of 22 companies, including big names such as Bajaj Auto, Dr Reddy’s and Jubilant FoodWorks, are slated to announce their quarterly earnings today.

On Wednesday, Asian stock indices were seen trading on a mixed note. Japan’s Nikkei 225 is seen extending its gains from the previous session as the data showed that Japan’s core machine order fell less than expected in March, extending some relief. On the other hand, China’s Shanghai Composite and Hong Kong’s Hang Seng were down by 0.18 and 0.05 per cent, respectively.

Back home, the markets began the session a strong note, supported by positive global cue, however, the key benchmark indices were unable to hold gains and thus, settled the day with gains of half a per cent but off day’s high. BSE Sensex rose 0.56 per cent to finish at 30,196 and Nifty added 0.63 per cent to close at 8,879. In the broader market, both the Nifty Mid-cap and Small-cap ended up by 0.50 and 0.19 per cent, respectively. On the sectoral front, a mixed performance was observed. Nifty Media, Nifty Metal and Nifty Auto were the top gainers. On the flipside, Nifty PSU Bank was the major decliner, followed by Nifty Realty. The advance-decline ratio was inclined towards the decliners.

On Tuesday, US stocks plunged sharply in the last leg of the trade as optimism surrounding the progress of a potential COVID-19 vaccine faded as several vaccine experts cast doubt on Moderna claim that its COVID-19 vaccine candidate had generated a significant immune response. Further, US housing start for the month of April came in worse than expected. The testimony of Fed Chairman Jerome Powell and Steven Mnuchin’s in Senate had almost no noticeable effect on the stocks. Dow dropped 391 points, S&P 500 slipped 31 points and Nasdaq Composite shed 50 points.  In European market, majority of the stocks ended lower on Tuesday as the market participants digested the latest batch of economic data.