Skip to main content

Buy the dip! Donald Trump COVID positive status could fuel volatility on Monday

Indian market could witness a knee jerk reaction when trading resumes on Monday tracking a fall in US markets on Friday after Donald Trump tested positive for COVID-19 that put investors in a risk-off mood.

 

Indian market could witness a knee jerk reaction when trading resumes on Monday tracking a fall in US markets on Friday after US President Donald Trump tested positive for COVID-19 that put investors in a risk-off mood.

Indian market rallied by over 3 percent for the week ended October 1, and was shut on Friday on account of a public holiday. Hence, Friday’s price action will induce some volatility on Monday but experts feel that green shoots owning to GST collection, Unlock 5 guidelines, and robust auto sales numbers will lend support.

“Dow has closed lower due to news of a delay in the expected fresh Stimulus package.  We expect on Monday Dow should perform better as markets should resume their up move after digesting the news. Our markets were closed on Friday so the effect of Friday should be visible at the open,” Sanjeev Agarwal, Founder & CEO, Alpha Quantum Capital Management Ltd told Moneycontrol.

The US President Donald Trump tweeted late Thursday that he had contracted the coronavirus and would be placed under quarantine, compounding the unknowns for an already volatile market, said a Reuters report.

The Dow Jones Industrial Average fell 134.09 points, to 27,682.81, the S&P 500 lost 32.36 points, to 3,348.44 and the Nasdaq Composite dropped 251.49 points to 11,075.02.

Experts are of the view that volatility could rise but investors can look to buy the dip amid positive micro news from the economic front, and on the global front, any announcement with regards to a stimulus will nullify the pessimism in the short term.



“Certainly some spike in volatility could spark up in the global markets due to this development over the weekend, but further clarification would be awaited from the White House itself about the course of action in case POTUS is absent due to self-isolation protocol,” Sacchitanand Uttekar, DVP – Technical (Equity), Tradebulls Securities told Moneycontrol.

“On the domestic front, the fatality rate in India has been the lowest so far, the impact of pandemic certainly doesn’t look denting our aspirations as GST Collections look better,  Auto Industry as a whole has a major share in our GDP & the current Sales numbers have been far better than expected,” he said.

Uttekar further added that with the Unlock 5 mode been deployed just at the beginning of the festive season would add on to these numbers as life is expected to be back on track & running soon.

 

The Goods & Services Tax (GST) revenue in September increased to Rs 95,480 crore from Rs 91,916 crore in the year-ago period.

GST collections for September were the highest since April, pointing to a pick-up in economic activities ahead of the festival season and return of demand as lockdown restrictions are rolled back.

The S&P BSE Sensex rose 3.5 percent while the Nifty50 was up 3.3 percent in the week ended October 1. S&P BSE Midcap index and the S&P BSE Smallcap index closed with gains of about 3.3 percent each in the same period.

Read Full article

Source - Moneycontrol.com

Comments

Post a Comment

Popular posts from this blog

Panacea Biotech shares hit 5% upper circuit after dengue vaccine completes phase I & II study

DengiAIl induced robust neutralising antibody responses against all the four dengue virus serotypes, the company has said in an exchange filing. Panacea Biotech share price hit 5 percent upper circuit on the BSE on September 24 after the company completed phases I and II study of its dengue vaccine candidate DengiAIl. "Panacea Biotec Ltd. is delighted to announce the successful completion of its Phase I/II study to evaluate the safety and immunogenicity of its vaccine, DengiAll, a single-dose liveattenuated tetravalent vaccine," the company said in an exchange filing. Live-attenuated vaccines contain weakened bacteria or viruses that trigger an immune response but do not cause disease. The company said DengiAIl induced robust neutralising antibody responses against all the four dengue virus serotypes. DengiAIl has been found to be safe and well-tolerated with no serious adverse effects, the company said. After a single-dose, more than 80 percent of the participants ...
Post a Comment
Read more

Taking Stock | Profit-booking pulls Nifty below 14,450; Sensex drops 549 points

  All the sectoral indices ended in the red with IT and PSU bank indices falling 2 percent each. The market remained under pressure on January 15 on the back of profit-booking across sectors amid weak global cues. At close, the Sensex was down 549.49 points or 1.11% at 49,034.67, and Nifty was down 161.90 points or 1.11% at 14,433.70. "The market witnessed profit-booking and following global trends. Nifty continues to resist 14,600 and has taken a dip towards 14,360. If the market closes below 14,380 levels, we might see a correction till the levels of 14,180-14,200. Momentum indicators like RSI, MACD are indicating a small correction in the markets," said Ashis Biswas, Head of Research at CapitalVia Global Research. All the sectoral indices ended in the red with IT and PSU bank falling 2 percent each. Broader markets performed in line with the main indices with BSE Midcap and Smallcap indices falling 1 percent each. Tech Mahindra, GAIL, HCL Tech, Wipro and ONGC...
Post a Comment
Read more

Similar to 2020, D-Street is at record high ahead of Budget 2021; will history repeat itself?

  Experts are of the view that a repeat of 2020 or what happened in March might not be possible but some consolidation cannot be ruled out. Back in March when everyone wanted to write-off 2020 from their books, hope and liquidity supported markets and investor sentiment. Nobody thought that after touching a 3-year low in March 2020, benchmark indices would give double-digit returns by the end of the year. The S&P BSE Sensex and Nifty50 rallied by about 15 percent in 2020 and the big outperformance came from the small and midcap stocks. The rally is still continuing in 2021. The S&P BSE Sensex, which climbed Mount 49K, is up over 3 percent while the Nifty50 is up over 4 percent so far in January. Sensex scaling the 49,000-mark and Nifty50 touching 14,500 levels ahead of the Budget 2021 could make anyone cautious about the strength of the rally. Back in January 2020, both Sensex and Nifty touched fresh highs ahead of Budget, and then the market fell like a pack of cards. The ...
Post a Comment
Read more