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Indian markets are likely to continue with its volatility as the earnings season gains momentum while COVID-19 cases continue its upward trajectory.

Dear Trader…

Indian equity markets maintained their upward momentum in second day of the week session as sentiment remains positive due to rising corona virus vaccination rates in many countries. Sentiments were upbeat as bank credit grew by 5.33 per cent to Rs 108.89 lakh crore, and deposits rose 10.94 per cent to Rs 152.15 lakh crore in the fortnight ended April 9, 2021. In the fortnight ended April 10, 2020, bank advances stood at Rs 103.38 lakh crore and deposits were Rs 137.15 lakh crore.

Additional support also came as Biden administration seems to have adopted a mission mode approach and removed all bureaucratic hurdles to help India in its fight against deadly COVID-19 pandemic that has spread like wildfire across the country.

Nifty futures opened at 14500.00 points against the previous close of 14486.20 and opened at a low of 14476.00 points. Nifty Future closed with an average movement of 182.75 points and a rise of around 158.85 points and 14645.05 points .. !!!

On the NSE, the midcap 100 index will rise 1.57% and smallcap 100 index is closing rise 1.74%. Speaking of various sectoral indices, the NSE saw heavy gains in bank, media and metal stocks, while all other sectoral indices closed higher.

At the start of intra-day trading, june gold opened at Rs.47465, fell from a high of Rs.47486 points to a low of Rs.47318, with a decline of 40 points, a trend of around Rs.47422 and May Silver opened at Rs.68618, fell from a high of Rs.68909 points to a low of Rs.68421, with a rise of 149 points, a trend of around Rs.68829..!!

Meanwhile, ratings agency ICRA in its latest report has stated that lockdowns and travel restrictions imposed by states such as Maharashtra, Delhi, Jharkhand and Rajasthan have dampened the sale of auto fuels and aviation turbine fuel, leading to refining and marketing companies reducing throughputs. Going forward, the possibility of such a trend gathering pace, as more and more states resort to lockdowns amid a surging case count and strained healthcare system, cannot be ruled out.

ICRA also noted that the benchmark Singapore gross refining margins (GRMs) remain subdued due to the global supply overhang amid a demand slowdown and are unlikely to materially improve in the near-term, owing to the second wave of Covid-19 in certain large economies such as India and Japan.

Going ahead, Indian markets are likely to continue with its volatility as the earnings season gains momentum while COVID-19 cases continue its upward trajectory. Market would continuously watch out for government’s course of action along with progress on vaccination drive in order to curb pandemic.

Investors would also keep an eye on management commentaries in the their post result concalls, given the current situation. This week investors would await US GDP data along with US Fed’s monetary policy.

Technically, the important key resistances are placed at 14606 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 14676 – 14707 levels. Immediate support is placed at 14533 – 14474 levels.

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