Indian Stocks Gain After Finance Minister's Statement
Nifty reverses as FM's measures boost sentiments while global markets also pull up as Trade war tensions that were sparked on Friday are seen easing down. Nifty posts almost 300 points rally from day's low to close at 11057.
It's very volatile markets at this point in time with Tweets, FM measures, reactions, sentiments, and whatnot. All the things playing out on a Monday morning. The Indian equity markets were upbeat on sentiments post Finance minister Measures and comments while the market was still in dilemma over China's retaliatory tariffs. The trump tweeting again to make sure there is a possibility of trade talks further pushed a negative DJIA and other markets to come up in green. The Nifty which was already on a roller coaster of positive sentiments extended the 300 points by the end of the day.
This is also a reversal that was overdue as markets were having RSI divergence and it was an overdue move technically. Further markets are now eyeing other announcements that Finance ministry is going to come up within a few days. So we may see buyers aggressively using any dips in between.
The trade war is a concern now since it has been days now markets are discounting every news and tweet and investors are now losing their cool. Since long term money needs a stable environment in the global markets and it is just not the environment that would be embraced easily.
For Nifty we believe the momentum may continue with 10800 - 10850 as an intermediate support for an upside move that can surpass 11400 if bulls can take out 11180 on a closing basis.