How do you see the trading outlook for the stock markets on 24 April, Friday? Do you expect pressure on the markets?
Answer
Answer
Nifty has rallied 25% from the lows of March 2020 and that is likely to place some limits to the rally in the Nifty and the Sensex. Caution is also warranted as Friday is the last trading day of the week and traders may prefer to stay light over the weekend. Here is the outlook.
· The sustained rise in Coronavirus cases and the failure of the Gilead vaccine clinical tests could be a negative for sentiments. Expect some pressure on pharma stocks.
· US markets faced pressure at higher levels after the Gilead clinical tests failed. SGX Nifty is also 1.3% down in early trades.
· Banks could remain under pressure and traders should use the recent bounces to sell into banking stocks like ICICI and IndusInd on asset quality concerns.
· For a short to medium term perspective, pharma appears to be the sector to watch out with optimism along with FMCG sector.
The next week will be the F&O expiry week so the unwind pressure will remain. Also it is a truncated week with Friday May 01, being a trading and banking holiday.