After a positive opening, the market moved in a range-bound manner, but remained in the green throughout the day. The market breadth was positive too, with 38 of the Nifty 50 stocks closing in the green. All the sectoral indices ended in a green note, while Nifty Pharma (+2.80 percent) & Nifty Metal (3.14 percent) gained the most.
Sumeet Bagadia, Executive Director, Choice Broking, said, “Technically, the Nifty index has faced resistance from the falling trendline as well as the upper band of Bollinger, which suggests crossing above the same can show an upside movement. Moreover, the index has given closing above the 21- Days Moving Average, which points out strength in the index,” he said.
A momentum indicator RSI &MACD has indicated positive crossover, which supports the bullish trend for the near term. At present, the nifty index is holding support at 14760 levels while an upside resistance seems at 15000 levels.
RBI relief to postpone financial stress from COVID-19
The RBI’s stimulus measures announced on May 5 will provide some relief to financial institutions in the next 12-24 months, but largely at the expense of postponing the recognition and resolution of underlying asset-quality problems, Fitch Ratings said. The shock to economic activity from the latest wave of COVID-19 pandemic will be less severe than the one in 2020, but recovery is likely to be delayed as economic activity dropped in April-May, the agency said.
The global rating agency said there are growing indications that the latest wave of COVID-19 infections will add to risks among financial institutions (FIs) and anticipates that the Reserve Bank of India (RBI) may introduce additional measures to support the financial sector if indications of economic stress mount.
It said currently authorities are implementing lockdowns more narrowly, and companies and individuals have adjusted behaviour in ways that cushion the effects.
“There is a risk that disruption could persist longer and spread further than our baseline case assumes, particularly if lockdowns are introduced in more regions, or nationwide,” it added.
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