Nifty 50 trade sharply higher today mirroring the stock rally in other major markets across the globe. Nifty 50 is a laggard as today makes two-week highs while Wall Street made yesterday 10-week highs.
S&P Global rating agency forecast that the Indian economy will contract by 5% in 2020 assuming that the outbreak will peak by the third quarter,” S&P said in a statement. Fitch Ratings also projects a 5$ contraction for the Indian economy.
The Indian Health Ministry announced that the number of coronavirus cases in India climbed to 158,333 and the death toll touched 4,531.
Investors mood has improved across the globe amid the reopening of the economies after the coordinated actions from central banks and governments managed to stabilize markets, at least for now. India is still under lockdown, but the gradual opening also helps risky assets and stocks.
Nifty 50 is 1.46% higher today at 9,455 taking support from the 50-day moving average that breached yesterday, and now the momentum is positive for the short term. Nifty 50 is 21% higher since the March lows but still lagging the major indices rebound in Europe and the USA. The long term technical outlook remains bearish for the Nifty index despite the sharp rebound.
On the upside, immediate resistance for the Nifty 50 index stands at 9,490 the daily top. A break above for Nifty might open the way for 9,616 the high from May 13. A settlement 9,616 would open the way for a bigger rally up to 9,888 the high from April 30.
On the flip side, first support for the Nifty 50 index will be met at 9,336 the daily lows. The next support zone for Nifty will be met at 8,985 the 50-day moving average. In case of a convincing break lower then the next support is at 8,808 the low from April 16.