Key Reasons that will decide the Nifty 50 Direction for the day.
- US Markets ended with Mix trends on back of weak unemployment data.
- Trade war between US & China is another risk for Global equities.
- More States in U.S. are reopening their economies.
- Most of Asian Markets are trading in red after late sell-off on Wall Street.
- India’s Service Sector Collapsed in April, Suggest IHS Markit India Services Business Activity Index.
- SGX Nifty is trading in Red in Morning Trade.
- Unemployment Data: Private Sector companies in United States cut a record 20.2 million jobs in the month of April, a Wednesday report. This has resulted late sell off in U.S. Markets.
- China & U.S Trade Tension: A rift between both nations on corona virus issue can prove to be detrimental for trade truce. Hinted Trump on recent comment “China may or may not keep trade deal” . A real threat to global equities.
- U.S. States Reopening: California Governor Gavin Newsom said that loosening of State lock down will begin on Friday. Georgia, Florida & Texas have already reopened their economies.
- Dow Jones Industrial Average declined by 218.45 points, or 0.91%, close at 23,664.64.
- The S&P 500 seen downside of 20.02 points, or 0.70%, ends at 2848.42.
- Nasdaq Composite Index decreased by 45.27 points, or 0.51%, close at 8,854.39.
Asian Markets In Morning
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Nifty 50 outlook for the day.
- Yesterday, IHS Markit India Services Business Activity Index revealed that Services sector has contracted in the month of April. It stood at 5.4 level fallen from 49.3 level in the month of March. This is worst ever number in the month April posted by the IHS Markit India Services.
- Markets have broken 9200 level and this may lead to further decline to 8900 level. So trade should be on short side now.
- Best strategy is to “Sell on Rally”. We recommend you to wait for rise at 9200 to 9250 level and if Nifty start trading weak at this level than go short for a target at 9100 level and stop loss 9300.