Impact of coronavirus on Indian Financial Markets

Impact of coronavirus on Indian Financial Market

By- ISHANK RAVI | TheLearnEarn | 04/05/2020

In the below blog article I have Highlighted key take away and points for:-

1) Global markets
2) Indian Markets 
3) Sectors to watch 
4) Trade Ideas:
5) Key events: Quarterly Result and Economical policy.
6) Past performance
 

*Global Economy is facing tough times currently due to Covid -19 and we have seen its impact on major world indices.
Oil prices slumped to historic levels, as a huge demand shortfall has squeezed the limited storage capacity.
US job losses has breached 30 million since the start of the coronavirus crisis, with a further 3.8 million claims for unemployment in the week ending 25 April.However, as several states begin to ease some of the restrictions imposed by the lockdown, investors' focus is beginning to shift from the depth of the downturn to the velocity of the economic rebound.

*Indian Indices shown the much expected pullback and kissed level of 9900 mark past week, with buying emerging in NBFC, Banks, and oil sector stocks were the front liners to lead this rally.
Indian investors are paying key attention to the news flow regarding vaccine as well as they are keeping a close eye at upcoming much expected economic package.
Here as per Nifty index Key things  to note for coming week is that one should not be EXTREME BULLISH or EXTREME BEARISH for the coming week.
Market levels to pay attention:
Nifty:
On downside:  9230-9350 -9450 will emerge a strong base for nifty
while key hurdle comes at 9800 to 9900 zone in nifty for next week

Bank nifty: 
While in bank nifty important levels are 19700/20200 which is a support zone
while first hurdle is at 23000/23500 zone and major hurdle at 25000 mark





*Sector to watch 
Due to Warren buffet owned Berkshire hathway sold its aviation industry related stocks
The aviation Sector stock i.e. Spice jet and Indigo shall see Pressure and selling biased.
PHARMA: Due to on-going research in pharma and hope of a vaccine discovery for corona-virus the pharma stocks will stay in focus.

Stock in focus for next week:
Results to watch are:

NIITTECH, TATA COFFEE ,  KANSAI NEROLAC , YESBANK , HCL TECH , PGHH , NESTLE and GILLETE  source : (  https://www.bseindia.com/corporates/Forth_Results.aspx )

Past Performance: In last few week it was suggested reducing longs in range the above 9750 to 9800
Stock specific we suggested reliance to short on rally for coming week with stop at 1510/15 zone for positional targets at 1350 odd levels
I will also suggested Asian paint as a short candidate.

Lupin has been given a short sell with targets in range 800 + levels which is almost achieved within a weak
On long side I will maintain  bullish on Bajaj finserv and hdfcbank, Bajaj finance due to technical charts
Hdfc bank formed a base at 920 /930 zone at was a good risk reward play as per market direction for 1000 &1010 targets
Bajaj finserv formed a dual bottom on chart and thus was a good buy at level of 4500/4550 for 5000 targets

Stock Bullish biased next week:

Hdfc bank (at zone 925 to 945 or 1000 & 1040) with support at 900 levels
Sunpharma in range of 435 to 450 for upside potential 525/530
Bhartiairtel: price zone 475 to 480 buy zone for 517 to 540 target zone

Stocks bearish next week:

Reliance in range 1500 to 1510 looks weak and can slide to 1320/1350 zone
Dr Reddy big hurdle at 4100 & can retest the levels of 3750-3800

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