Daily Markets - May 19, 2021 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian benchmark equity indices gave up some of the previous session gains and the Nifty ended 0.52 percent lower at 15030 on May 19. Nifty opened lower, made a few attempts to rise and stay in positive territory, but failed.

Volumes on the NSE were a little below the recent averages. Among sectors, Realty, Power and Healthcare were the main gainers while Telecom, Metals, Banks and Auto were the main losers. BSE Midcap and smallcap indices ended in the green.

Global stocks slipped and cryptocurrencies sank on Wednesday as a threat of unwanted inflation had investors shy away from assets seen vulnerable to any removal of monetary stimulus.

Asian stocks dipped and cryptocurrencies extended losses on Wednesday as uncertainties over inflation prompted investors to reduce exposure to riskier assets for now. Bitcoin and other cryptocurrencies slumped after China reiterated that digital tokens can't be used as a form of payment. European stock markets traded sharply lower Wednesday, following the late selloff on Wall Street and hit by losses to the basic resources sector.

Oil prices pulled back also after media reports the United States and Iran have made progress on reviving a deal restricting the OPEC country's nuclear weapons development, a development that could lead to increased supply from Iran. Some commodities that have benefited from reflation trade have also lost steam, with U.S. lumber futures losing almost 25% in the last three sessions.

U.K. inflation more than doubled in April. Consumer prices rose by 1.5% after a 0.7% climb in March. EU inflation came in high at 1.6%. Investors will study the minutes of the April Fed meeting, when they are released later Wednesday, for clues of when the central bank could consider cutting back its bond purchases, a move likely to precede increases in interest rates.

Nifty made a double top - the same as the previous day and later fell to enter the upgap area. Lower volume on May 19 suggests absence of enthusiasm on the part of traders at these levels especially in the face of the negative inflation and commodity price data and release of US Fed minutes. 14938-14967 will be the support for the Nifty while 15137 will act as a resistance.

Source : Equity Bulls

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