Key Reasons for surge in Nasdaq
- Nasdaq has turned positive for the year 2020, on the back of re-opening economies in U.S.
- All three Indices in U.S. are closed in Positive.
- France is planning to ease the lock down restrictions due to pandemic.
- China exports rose by 3.8% in the month of April from previous year.
- Asian Markets are trading in green territory this morning.
- SGX Nifty is suggesting a positive start.
- U.S Indices: Nasdaq an IT indices in United States, has turned positive for the year 2020. This is on the back of reopening of U.S. economies & liquidity infusion in the system by Federal Reserve & American Government. Shares like Apple, Facebook, Netflix and Microsoft have surged more than 15% this year.
- Unemployment Data: Another 3.17 millions Americans filled unemployment benefit last week. Lowest weekly numbers after corona virus pandemic. Total number of Americans who have raised the unemployment claim now stood at 33.5 million.
- China’s Exports: China posted better export number at 3.5% in the month of April, compared with last year. The Reuter’s economist poll stood at 15.7% decrease. Lifted the Asian Markets too.
- France Planned to Re-open: After Germany, Italy and Netherlands in easing restricts. France will start rolling back lock down restriction, suggested by France Prime Minister Edouard Philippe.
- Dow Jones Industrial Average increased by 211.25 points, or 0.89%, close at 23,875.89. Still down more than 10% for the year 2020.
- The S&P 500 seen upside of 32.77 points, or 1.15%, ends at 2881.19. It is down by more than 10% for the year.
- Nasdaq Composite Index increased by 125.27 points, or 1.41%, close at 8979.66. A return of 0.1% for the year 2020.
Asian Markets In Morning
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Nifty 50 outlook for the day.
- SGX Nifty is suggesting that Indian Markets will start at around 9300 level. The surge in Nasdaq in green territory for the year will be seen as positive. So keeping this in view our strategy should be “Buy on Dip”.
- We recommend you to let the market cool down for first half an hour and in case Nifty dip at 9200-9250 level in initial stage. You are advised to Buy Nifty Future with a target of 9350 level and stop loss at 9125 level.
- Yesterday Nifty has a fall but today you have an opportunity to go long.