Market Brief: Asian Stocks Mixed, Nifty 50 Breaks Below 10,000

[vc_row][vc_column][vc_column_text]Asian stocks ended mixed on Wednesday after reaching two-month highs as the expectations of further stimulus and a V-shaped recovery, supports risky assets around the globe. Wall Street finished higher yesterday after the U.S. ISM Non-Manufacturing PMI came in at 45.4 beating the expectations of 44 in May. The ISM Non-Manufacturing New Orders Index came in at 41.9, topping the expectations of 18.5. The ISM Non-Manufacturing Prices Paid also came in at 55.6 beating the expectations of 52.5. 

European stocks also ended higher after news that the German government reached an agreement for an additional relief package up to 100 billion. Dax index outperformed, with gains over 3.88% while CAC 40 was 3.36% higher at 5,022. Investors hope that the ECB in it’s meeting today will increase its Pandemic Emergency Purchase Program bond-buying program, by as much as €500 billion.

The Nikkei 225 finished 0.36% higher at 24,262. The Hang Seng Index is 0.26% lower at 24,264. The Shanghai Composite index is 0.16% lower at 2,918. The Singapore Straits Times index is 0.01% lower at 2,700. The ASX 200 is 0.52% higher at 5,972 after the Australia Retail Sales came in at -17.7%, beating the expectations of -17.9% in April. 

Brent oil price retreat today after the recent rally. WTI crude oil is 0.56% lower at 36.51 per barrel, while the Brent crude oil broke below the $40 mark and is 0.43% lower at $39.22. [/vc_column_text][vc_column_text css=”.vc_custom_1585659307150{background-color: #f9f9f9 !important;}”]

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Nifty 50 Breaks Below the 10,000 Mark

Nifty 50 is under selling pressure today after six consecutive days of gains as investors book some profits ahead of the 100-day moving average. The technical picture is neutral now as the Nifty 50 index is trading between the 50 and 100-day moving average. 

On the downside, first resistance for Nifty 50 index stands at 9,944 the daily low. If the index breaks lower, then the next support will be met at 9,692 the low from June 1. If the bearish action continues then the next target is at 9,354 the low from May 29.

On the contrary, the initial support stands at 10,123 the daily top. The critical resistance is the 100-day moving average at 10,337. Bulls will take control above the 100-day moving average, and might test the 10,761 the high from March 9. [/vc_column_text][vc_column_text css=”.vc_custom_1565176883833{background-color: #f9f9f9 !important;}”]

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[/vc_column_text][vc_single_image image=”49131″ img_size=”full” add_caption=”yes” alignment=”center” onclick=”link_image” title=”Nifty 50 price chart”][vc_column_text]More content

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