Daily Markets - April 27, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
(Time Zone: UTC)
Indian benchmark equity indices ended higher for the second day in a row on April 27. The Nifty opened higher and kept making higher top higher bottom till the close. At close the Nifty was up 168 points or 1.16% at 14653. Optimism that the U.S. decision to offer vaccine support will aid the nation's effort to control the world's largest surge in coronavirus infections helped sentiments.
Volumes on the NSE were in line with the average of the past two days but lower than the past two weeks average. Among sectors, all sectors ended in the positive led by Metals, Capital Goods and Consumer Durables.
European stocks were mildly negative on Tuesday morning as global markets prepare for the U.S. Federal Reserve's two-day meeting, which begins today, and investors digest a slew of earnings. The U.S. central bank is widely expected to keep rates on hold and asset purchases unchanged, but investors will pay close attention to comments from Chairman Jerome Powell, particularly regarding inflation.
Asian markets mostly fell as the Bank of Japan kept its monetary policy unchanged and cut its inflation forecast. Chinese shares fell in the early part of the session after the country's top market watchdog said that it has started an investigation into food-delivery giant Meituan for suspected monopolistic practices, an extension of the campaign to rein in the country's technology behemoths. South Korea reported economic output rebounded to above pre-pandemic levels after growth accelerated to 1.6% over the previous quarter in the three months ending in March.
Nifty filled the downgap made on April 19 and closed above it, thus nullifying the bearishness arising out of that gap. 14697 is the next resistance, which does not seem difficult to breach. However 14785 being another downgap resistance (made on April 12) could be a tough resistance on the way up. On falls 14557 could offer support.