- With Dow closing weak on Friday and a virtual shutdown in most of the large cities including Mumbai, it will be a tough challenge for traders to be able to transact. The domestic institutions may support the markets to prevent systemic risk.
- The early indications from the SGX Nifty are negative and are showing signs of the almost opening on lower circuit. The markets will really be counting on institutions supporting the market to avoid a fall below the 7500 mark for Nifty.
- FPIs were net sellers to the tune of Rs.3346 crore while DFIs bought Rs.2431 crore on Friday. The FIIs have sold nearly Rs.108,000 crore in the equity and debt markets since the beginning of May, the sharpest sell-off in 15 sessions.
- On Friday European markets were up 3-5% but the sharp 1000 point fall in the Dow is likely to weigh. Coronavirus cases are rising globally, including India. The SGX Nifty is trading 11% down in early trades and institutional support will be the key.
- With the Nifty on the SGX showing an 11% correction, the opening may be volatile with a lower circuit with strong institutional support to prop up the markets. We suggest not playing into this volatility as it may happen with a high VIX. We shall take a fresh view on the markets once they stabilize at lower levels.
