Market Brief: Nifty 50 At Four-Month Highs. Asian Markets Higher On COVID-19 Vaccine News

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Asian markets are trading higher on hopes for a fast recovery and on the news for a coronavirus vaccine from Pfizer and BioNTech, which provided promising results in early-stage human trials.
Wall Street ended mostly higher helped by better economic data. The U.S. Manufacturing PMI came in at 49.8, topping the estimates of 49.6 in June. The Private payrolls rose by 2.369 million in June. The May ADP figures, in a big surprise, revised higher to 3.065 million from a job loss of 2.76 million. The Challenger Job Cuts came in at 170.219K in June below the previous month of 397.016K.

Investors will focus today on U.S. June employment figures, with estimates, for an increase of 3,000K in the Nonfarm Payrolls from the previous 2,509K while Unemployment Rate could also drop to 12.3% from 13.3%.

The rising new cases of coronavirus infections continues to weigh on risky assets. On the geopolitical front, China’s move to impose national security law on Hong Kong also adds to risks.

Nikkei ended 0.11% higher at 22,145. The Shanghai Composite index is 1.86% higher at 3,082. The Singapore Straits Times index is 0.36% higher at 2,619. Hang Seng is 1.86% higher at 24,880. The ASX 200 is 1.08% higher at 5,998.

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Nifty 50 At Four-Month Highs

Nifty 50 continues higher, making fresh four-month highs on improved investors sentiment mirroring the Wall Street and Asian Indices. The IMF now expects India’s GDP to contract 4.5% in the fiscal year through March 2021, compared with the previous estimate of 1.9% growth. The downgrade in the expectations is due to an extensive period of lockdown in India.  

The technical outlook for Nifty 50 is positive for the short term, but the longer-term remains bearish below the 200-day moving average. On the upside, the first resistance stands at 10,560 the daily high. The next resistance is at 10,758 the high from March 9. Bulls will take control above the 200-day moving average at 10,891. 

On the flipside, initial support for Nifty 50 index stands at 10,485 the daily low. If the Nifty index breaks lower, then the next support will be met at 10,271 the low from June 30. If the selling action continues then the next target is at 9,946 the 100-day moving average. 

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Nifty 50 Daily Chart

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