Daily Markets - April 30, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

India's benchmark equity indices fell on April 30 amid the extension of lockdown-like curbs in some states and ahead of uncertainty arising from the outcome of state assembly results due over the weekend. The Nifty opened down, made an attempt to recover making an intraday high at 0945 Hrs, but later fell. The fall accelerated post 1245 Hrs. At close the NSE Nifty 50 Index dropped by 1.77% or 263 points to 14,631. However Nifty posted its best rise in three weeks.

Volumes on the NSE were higher than recent averages, suggesting delivery sales by institutions. Among sectors, Banks, Finance, IT, PSU Bank, FMCG and Auto were the loss leaders while Pharma index gained.

Asian shares were mostly lower Friday amid uncertainty about the prospects for a global economic recovery from the coronavirus pandemic. European equities were set to close the week flat as investors weighed up the potential for recovery in the eurozone's coronavirus-impacted economy against a strengthening euro and signs of slowing growth in China.

The eurozone economy contracted at a slower rate than analysts had expected in the first three months of the year, shrinking 1.8 per cent year on year. Economists surveyed by Reuters had forecast a 2 per cent decline. France's economy grew 0.4% in the first quarter of the year, despite the tightening of restrictions to limit the spread of the COVID-19 pandemic. But Germany's economy declined 1.7%, while the Spanish and Italian economies contracted 0.5% and 0.4%, respectively.

India's weight in the Asia Pacific portfolio will rise, Jefferies Chris Wood said in his Greed & Fear report, citing the domestic stock market's "extraordinary resilience" and optimism on vaccine rollout in the next six months. The Indian 'overweight' level on the Asia Pacific relative-return portfolio (excluding Japan) will be increased by 2 percentage points to 14%, back to where it was at the end of last quarter.

Nifty filled the upgap made on April 28 in the fall seen on April 30. The choppy moves in the Nifty continue with gaps being formed on both sides and getting filled soon. Negative advance decline ratio suggests some profit taking by traders ahead of the state assembly results. On a weekly basis, Nifty has gained 2.02% over the week . While one trigger of state assembly results will be over by the weekend, Q4 results from majority companies will be out by May 10. 15050 has become a strong resistance while 14141-14269 could be a support for the near term.

Source : Equity Bulls

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