Market Daily - May 28, 2020 - Mr. Deepak Jasani, Head Retail Research, HDFC Securities

Indian equity markets ended the May F&O series on a firm note on Thursday. It clocked its second straight day of gains. The NSE Nifty 50 index ended just below the 9,500 mark at 9,490, up by 1.9%.

Firm European markets and forecast by IMD that the southwest monsoon is expected to reach the Kerala coast around June 1 (vs its earlier forecast of a week's delay) improved sentiments. Media, Engineering / Capital Goods, Auto and BFSI stocks did well.

Asian markets reacted from highs on Thursday as worries over the political turmoil in Hong Kong continue to overshadow hopes of a post-pandemic recovery. Chinese lawmakers approved a proposal for new national-security legislation in Hong Kong, defying President Donald Trump.

European shares rose for the fourth straight session on Thursday and the euro rested at a two-month high, as businesses returning to work and a 750 billion euro EU stimulus plan outweighed rising U.S.-China tensions. A gauge of euro-area confidence inched up from a record low, adding to the bullish mood.

Technically the Nifty has filled the downgap made on May 14. Now the next resistance is at 9533-9584 band, while 9334-9383 could offer support in the near term.

Source : Equity Bulls

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