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

Reliance Jio Q3 results: Profit grows to Rs 3,489 crore; ARPU rises to Rs 151

  The average revenue per user (ARPU) during the quarter came at Rs 151 per subscriber per month as against Rs 145 per subscriber per month in the September quarter. Reliance Jio, the telecommunications arm of Jio Platforms, on January 22 posted a net profit of Rs 3,489 crore for the quarter ended December 31, 2020. The profit was higher than the street expectations as analysts in a CNBC-TV18 poll had estimated the number at Rs 3,200 crore. Jio's net profit grew 15.5 percent QoQ as in the September quarter of FY21, its profit was Rs 3,020 crore. The average revenue per user (ARPU) during the quarter came at Rs 151 per subscriber per month as against Rs 145 per subscriber per month in the September quarter. A CNBC-TV18 poll had estimated ARPU at Rs 148.2. Revenue, including access revenues for the quarter, was Rs 22,858 crore ($3.1 billion), up 5.3 percent QoQ. A CNBC-TV18 poll had estimated revenue to the tune of Rs 18,165 crore. EBITDA for the quarter stood at Rs 8,483 crore ...
Post a Comment
Read more

Ashoka Buildcon share price up 4% on bagging 2 NHAI projects

The share touched its 52-week high Rs 127.90 and 52-week low Rs 37.00 on 23 September, 2019 and 03 April, 2020, respectively. Ashoka Buildcon share price added over 4 percent in early trade on September 8 after the company emerged as the lowest bidder (L-1) for the two NHAI projects. The aggregate quoted value of the projects is Rs 1,390 crore. The company had submitted bids to National Highway Authority of India (NHAI) for the project of four laning of Arra h to Pararia section of NH-319(Old NH-30) in the State of Bihar under Bharatmala pariyojana Phase -1 on EPC Mode (Package-I) and Four laning of Pararia to Mohania section of NH-319(Old NH-30) in Bihar under Bharatmala Pariyojana Phase-I on EPC Mode (Package II). At 09:23 hrs Ashoka Buildcon was quoting at Rs 70.60, up Rs 2.40, or 3.52 percent on the BSE. The share touched its 52-week high Rs 127.90 and 52-week low Rs 37.00 on 23 September, 2019 and 03 April, 2020, respectively. Currently, it is trading 44.8 percen...
Post a Comment
Read more

Futures Trade | A bullish breakout of a flag pattern in HDFC

HDFC is moving in an uptrend with a minor corrective decline. The range is classified as a flag and a breakout of falling minor trendline confirms a possible upside. HDFC is moving in an uptrend with a minor corrective decline from Nov 20 highs. The decline is on lower, contracting volumes and suggests a correction within an ongoing trend. The range-bound action can also be classified as a flag as it is on coming off a sharp rally. A breakout of falling minor trendline confirms a possible upside. Buy around Rs 2300-2310. Keep a stop below Rs 2250 and hold for a target of Rs 2400 and above that to Rs 2450.
Post a Comment
Read more