BSE Sensex and Nifty 50 were staring at a negative opening on Wednesday, as suggested by trends on SGX Nifty. Nifty futures were trading 76 points or 0.50 per cent down at 15,084.50 on Singaporean Exchange. Market participants will take cues from COVID infection cases, ongoing vaccination drive, Q4 results, oil prices, rupee trajectory and other global developments. Global markets were also seen negative in early trade on Wednesday. Oil prices settled lower in the previous session, tumbling from a two-month high. The market is likely to continue its positive trend as fresh daily covid cases decline and investors are upbeat on reopening of economic activity soon, said an analyst. “The earnings season also has been healthy so far, and thus providing support to the market. Even the positive news flows around vaccination front is providing good visibility,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
Global markets: Stock markets in Hong Kong and South Korea were closed for a public holiday on Wednesdy. Japan’s Nikkei 225 fell nearly one per cent while the Topix index slipped half a per cent. In overnight trade on Wall Street, US stock indices ended with losses. The Dow Jones Industrial Average fell 0.78 per cent, the S&P 500 lost 0.85 per cent, and the Nasdaq Composite dropped 0.56 per cent.
Q4 results: Companies such as Indian Oil Corporation, Indiabulls Housing Finance, Endurance Technologies, JK Tyre & Industries, MAS Financial Services, SML Isuzu, Shriram Asset Management, Tanla Platforms, TCI Express, and Zuari Agro Chemicals among others will release quarterly earnings on May 19.
FIIs turn net buyers of Indian equity: On Tuesday, foreign institutional investors (FIIs) lapped up shares worth Rs 618.49 crore, while domestic institutional investors (DIIs) bought shares worth Rs 449.52 crore on a net basis in the Indian equity market.
Technical view: The short-term trend of Nifty continues to be positive, said an analyst. “The unfilled opening upside gap and a formation of small positive candle could hint at a possibility of profit booking emerging from the highs. Hence, bulls need to be cautious at the swing highs. Nifty not showing any profit booking in the next couple of sessions could open the next upside levels of 15450-15500 in the near term. Immediate support is placed at 15000 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Ongoing consolidation to improve returns for equities: The ongoing consolidation in equities would improve return prospects during the second half of 2021, Morgan Stanley said. Leading indicators relating to fundamentals including growth, stability, government policy and RBI policy, and corporate earnings are generally positive about equity returns, analysts at American brokerage said.