Sensex, Nifty may start lower amid rising COVID-19 cases; 5 things to know before market opens

Indian share market benchmarks BSE Sensex and Nifty 50 were likely to start the week on a negative note due to rising COVID-19 cases and stricter curbs in the country. This week may witness volatility as earnings season starts from today. Moreover, market participants will track global cues, following the announcement of the investment plan by US President Joe Biden. Among other major events, the Monetary Policy Committee headed by the RBI Governor is scheduled to meet from April 5-7. The PMI data for manufacturing and services sectors are also scheduled to be announced this week, which would also influence trading sentiments. “It has to hold above 14800 to witness an up move towards 15000-15100 while on the downside support exists at 14700-14600 levels,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

SGX Nifty in red: Nifty futures were trading 87 points or 0.58 per cent down at 14,905 on Singaporean Exchange, suggesting a subdued opening for BSE Sensex and Nifty 50 on Monday.

Nifty’s support, resistance: On a daily basis, the Nifty/Sensex closed above the 20-day average and so the Nifty/Sensex can now challenge the peak of 15335/51800, said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities. As per candlestick formation, the market has formed a bullish continuation formation that might send the market to minimum of 15100/51200 levels. Also, on a weekly basis, the level of 14880/50050 has been broken, indicating a rally. “The next level 14600/ would be considered a significant support area. A positive move in global markets, a drop in bond yields and a slight easing in the dollar index could help the Nifty to move beyond the 15,450 levels. Below 14600/49300, Nifty would retest the levels of 14400/48700 or 14250/48200,” Chouhan said.

FIIs remain net buyers of Indian equities: On Thursday, foreign institutional investors (FIIs) lapped up shares worth Rs 149.41 crore, while domestic institutional investors (DIIs) offloaded shares worth Rs 296.84 crore on a net basis in the Indian equity market, as per provisional data available on the NSE.

RBI 3-day MPC starts: The Monetary Policy Committee (MPC) of RBI will begin its three-day deliberation on Monday. The RBI will announce its monetary policy review on April 7, 2021. According to experts, the MPC is likely to maintain the policy stance accommodative.

Global watch: Asian stock markets were trading mostly higher today, with Japan Nikkei 225 up 0.71 per cent while Topix index gained 0.35 per cent. While South Korea’s Kospi fell 0.27 per cent. On Wall Street, the S&P 500 surged on Thursday to its first-ever close above the 4,000 mark. The Dow Jones Industrial Average rose half a per cent, while the S&P 500 surged 1.18 per cent. The Nasdaq Composite added 1.76 per cent.