Daily Markets Quote - May 26, 2020 - Mr. Deepak Jasani, Head Retail Research, HDFC Securities
Indian equity indices once again failed to hold on to their opening gains on Tuesday and ended marginally lower with Nifty able to hold above 9,000 level. At close, the Nifty was down 10.20 points or 0.11% at 9029.05.
Sentiments in the Indian market remained weak despite Asian and European markets trading positive. Resistance of 9170-9180 proved tough to be breached. Metals, Cement, Insurance, small private Banks, Auto shares did well, while Telecom, IT services, NBFC and Aviation stocks fell. Participants were unsure about the extent of pain in the Indian economy as covid cases continued to rise and the end day of the last lockdown came near.
Global markets jumped Tuesday on renewed coronavirus recovery hopes, as governments around the world planned steps for a return to normal life and work after the outbreak.
Comments from China's central bank governor on support for its slowing economy also lifted sentiment.
Travel stocks rallied in Europe on Tuesday on Spain's decision to let in foreign visitors and a report said the German government wants to end a travel warning for tourist trips to 31 European countries from June 15 if the coronavirus situation allows. Germany's Lufthansa extended gains after the government threw a 9 billion euro lifeline.
Technically, the Nifty seems to be in consolidation mode as it is now trading within the 8960-9180 trading range. Further directional cues are likely to emerge on a move beyond this range.