Daily Markets Quote - May 27, 2020 - Mr. Deepak Jasani, Head Retail Research, HDFC Securities
Indian indices ended strong on May 27 with Nifty closing 285.9 points or 3.17% higher at 9314.95 and Sensex closing above 31,000 mark at 31605.2. This was on the penultimate day of the May series F&O expiry.
Indian markets after opening higher reacted immediately but formed a bottom around 0950 Hrs to start a smooth sharp rally during the day with small corrections. Large Banks, IT, Metals and Cement stocks rose after witnessing institutional buying. Indian markets seemed to be playing catch-up with other markets even as sentiments have stabilized abroad.
Major Asian stock markets were mixed Wednesday as U.S.-Chinese tension over Hong Kong competed with optimism about recovery from the coronavirus pandemic. Benchmarks in Shanghai and Hong Kong retreated after the White House said a proposed national security law might jeopardize the Chinese territory's status as a global financial centre.
European stocks rose on Wednesday, underpinned by expectations that the European Union will announce a massive stimulus program for the region's recovery efforts, though investors were keeping an eye on simmering China-U.S. tensions.
Technically the Nifty seems to have made an intermediate bottom at 8806 on May 18 going by the extent of rise today. It could now face resistance at the downgap resistance of 9351 and later at 9553. On falls it could take support at 9179.