Daily Markets - May 12, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian benchmark equity indices fell for the second consecutive session on May 12 on the back of negative global cues. Nifty opened gap down, but made an attempt to recover. At 1230Hrs, the previous day's low proved to be a tough resistance for the Nifty and it began to fall making lower tops and lower bottoms. At close, the Nifty was down 154.30 points or 1.04% at 14696.50.

Volumes on the NSE were above the recent averages. Among sectors, PSU Bank index was the main gainer, while Bank, Metal and energy indices were the main losers.

Asian stock markets retreated Wednesday as investors looked ahead to U.S. data they worry will show inflation is picking up. Taiwan stocks closed 4 per cent lower (up from mantra day low of -8.6%) on Wednesday and clocked their worst day in more than a year as authorities mulled tighter restrictions to tackle COVID-19 cases.

European stocks steadied on Wednesday after their worst selloff this year as strong earnings reports and signs of a speedy economic recovery offset concerns about a rapid rise in prices. In European economics, the executive branch of the European Union significantly increased its economic forecast through to 2022, expecting the euro area economy to grow by 4.3% this year and 4.4% next year. The European Commission in February forecast 3.8% growth in both years.

Nifty fell on May 12 filling the upgap made on May 07. It closed near the intra day low, Advance decline ratio fell into the negative suggesting nervous profit taking by investors across stocks. Fears of a high April CPI number in the US today evening has dragged global stocks down. However unless the figure is substantially higher than forecast of 3.6%, markets could bounce in the near term. 14611-14790 is the band for the Nifty in the near term.

Source : Equity Bulls

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