Daily Market Update - May 18, 2020 - HDFC Securities

Mr. Deepak Jasani, Head Retail Research, HDFC Securities on today's market performance.

Indian indices ended lower (contrary to the trend in Asian and European markets) for the third consecutive day on May 18 as details of Rs 20 lakh crore stimulus package announced by the Finance Minister over Wed-Sun disappointed listed corporates and market participants. Extension of lockdown and large additions of Covid 19 cases also dampened spirits. At close Nifty was down 313.60 points or 3.43% at 8823.25.

Financials, Aviation, Auto, Metals, Oil & Gas and Media stocks came under heavy selling pressure while IT and Pharma stocks rose.

European stocks traded sharply higher Monday morning as investor confidence rose cautiously with lockdown restrictions around the world being lifted and Covid 19 cases grew at the slowest rate in months in the region. Major markets in Asia were mildly higher. However, oil prices rose in the afternoon of Asian trading hours on expectations of demand pickup and supply cuts.

Technically, Nifty has closed below the crucial level of 8909 and hence the intermediate trend has turned down. 8653 is the next support for Nifty while 8909 will be its resistance.

Source : Equity Bulls

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