Profit booking can be seen
The bulls continued to march higher and recorded gains for the fourth consecutive day after RBI left policy rates unchanged but maintained its accommodative stance to boost growth. However, on candlestick pattern, there is a formation of ‘spinning top’ like candle and a V-shaped recovery formation of this pattern indicates profit booking. There are a very few instances, where the V-shape recoveries is sustained for a longer period. However, stock specific action is likely to continue. Currently, SGX Nifty is trading with a modest cut of two points at 12,127 levels.
Asian markets were trading with modest losses on Friday as the market participants awaited the release of China’s trade data for January. Hong Kong’s Hang Seng is down by 0.48 per cent, China’s Shanghai Composite shed 0.11 per cent and Japan’s Nikkei slipped 0.08 per cent.
Back home, the key benchmark indices gains for the fourth consecutive day on Thursday. After a positive start, the benchmark indices pared gains. But, post the announcement of RBI policy, bulls gained strength as the RBI tweaked maintenance of CRR norms to aid funding to MSMEs as well as to auto and housing sector, while keeping rates unchanged. But, in the last leg of trade, volatility played its role on account of expiry of the weekly index option on NSE. At the closing bell, Nifty and Sensex closed up by 0.40 per cent each, respectively. In broader markets, Nifty Mid-cap and Small-cap rallied 0.69 and 0.48 per cent, respectively. On the sectoral front, majority of the sectors ended in positive territory. Nifty PSU Bank and Nifty Media were the major advancers, whereas, Nifty FMCG, Nifty IT and Nifty Realty were the major decliners.
How did western market fare in overnight trade? US markets rose for a fourth consecutive day on Thursday while, China unexpectedly slashed tariffs on $75 billion worth of US goods. All three indices rose to all-time highs. The tech-heavy Nasdaq led the way with 0.7 per cent gains followed by Dow and S&P 500 which added 0.3 per cent each. Markets in European region also ended on a cheerful note as positive news on the US-China trade front negated lingering concern about the coronavirus outbreak.