AAA20042020_MarketOutlook

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US indices end with gains for best week in 10 years as Dow Jones reclaims 24000, while Nasdaq records gains for 2020. Banks, financials and consumer stocks lead the gains while energy stocks see weakness persist. Bond yields remain range bound trading close to 0.65%, while WTI crude hits 20 year lows.

Asian indices opened in the red led by the Japanese Nikkei as profit booking emerged after a superb last 2 weeks as virus cases continued to see recurrence in select countries. The Nikkei was trading down 180 points in early trade as markets await data for growth from China and some more color on restarting of industries.

The Nifty closed with gains on Friday as optimism on the back of strong global cues enabled the index to close near 9300. Banks led the gains as RBI pumped more money into the system by cutting the reverse repo and allocated more funds for the MSME & NBFC sectors. Value buying/short covering saw NBFC stocks react sharply to the upside with mid caps being the week’s winners.

Technical view:Nifty will find support around 9100, while 9500 will act as resistance on the upside. Bank Nifty finds support around 20200, while 21200 will act as resistance on the upside.

Corporate and Economy Snippets:
Kotak Mahindra Bank will consider raising of equity capital through private placement, FPO, QIP at its board meeting on April 22.
Tata Motors Jaguar Land Rover retail sales in FY20 fell 12.1% vs. last year.
RBI measures for NBFCs unlikely to boost credit flow to broader economy: Moody’s
NHAI to resume toll collection on national highways from April 20.

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