Equities ended the week down by 3% after the markets tanked on Friday. The Sensex crashed by 633.76 points, or 1.63%, to close at 38,357.18 while the 50-share Nifty was down by 193.6 points, or 1.68%, to close at 11,333.85. The markets ended the day at their two-week lows tracking the sell-off in global markets.
The markets erased most of their two-week gains on Friday and traded in the red throughout the trading session.
The market remained cautious on weaker-than-expected GDP prints and weak GST collections even while PMI and auto sales showed some improvement. On the economy front, real GDP growth of negative 23.9% for Q1FY20 revealed the extent of economic damage from Covid-19. Indo-China border tensions, rising cases of infections, global market correction and valuations are the key risks to the Sensex in our view. We see the risk reward ratio getting unfavorable at these levels. We advice caution at the current juncture.
The stock markets had a gap down opening, following cues from Asian markets, which ended the day in the red. Bourses in China, Taiwan and South Korea were down between 0.87% and 1.15%. Similarly, Hong Kong’s Hang Seng tanked by 1.25%. The markets were tracking a sell-off in Wall Street overnight led by technology stocks as investors booked profits, leading to an 800-point fall in Dow Jones.
Bearish engulfing chart pattern formed on nifty on weekly basis.
Nifty Outlook: Nifty50 closed lower on Friday at 11333.85 level, -193.60 points, or -1.68 per cent. Today Nifty Support : 11250 and 11150 Resistance : 11400 and 11450.
Nifty Weekly: Outlook: Nifty Support : 11100 and 10950 – Resistance : 11400 and 11450.
