Daily Markets - May 21, 2020 - Mr. Deepak Jasani, Head Retail Research, HDFC Securities

Indian benchmark indices managed to close in positive territory on May 21 for the third straight session despite profit booking post 1330 Hrs, erasing some of the intraday gains. At close, the Nifty was up 39.70 points or 0.44% at 9106.25. First signs of opening up of the economy enthused investors but at higher levels they chose to play safe. Aviation, FMCG, Metals, Auto and PSU Banks stocks did well, while Private Banks, NBFCs, Power and Engineering stocks came under pressure.

Asian markets closed mostly lower Thursday as investors reacted to bad economic news from Japan, and to China's worsening trade and diplomatic relations with Australia and the United States.

European stocks declined on Thursday even as data showed the economy has limped off the bottom. The flash France purchasing managers index rose to 30.5 in May from 11.1 in April, the flash Germany PMI composite index rose to 31.4 from 17.4, and the flash U.K. composite index rose to 28.9 from 13.8 in April. US data on jobless claims and PMI expected later in the day was awaited.

Investors were also looking ahead to a key policy gathering in China that may yield more economic stimulus, the start of the annual parliament meeting on Friday where the Premier is expected to announce key economic targets and details on fiscal stimulus plans.

Technically the Nifty managed to show a weak follow through of the bullish signal generated on Wednesday. 9179-9280 could be the next resistance band for the Nifty while 9030 could be a good support.

Source : Equity Bulls

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