Zubu Client Sentiment Nifty50 Report:
It is a Post Market Analysis, by which one can understand Retail trader’s sentiment and discover who was going long and short, the percentage change over time, and whether market signals are bullish or bearish
Nifty50 retail trader data shows 43.46% of traders are net-long, while the number of traders net-short was 56.54%. FII’s unwinded huge longs -5693 & created few shorts 625, while retailers created huge longs 5254 & shorts 2538.
Rally in heavyweight stocks helped benchmark indices to put up a strong show on May 31 despite mixed trends in the global market. The Nifty50 hit a fresh record high at 15,606, while the S&P BSE Sensex had a touch-and-go moment with 52,000.
The Sensex finally settled at 51,937, 514 points higher, and the Nifty50 closed with gains of 147 points at 15,582.
Sectorally, the rally was seen in energy, metal, telecom, and oil & gas stocks, while some profit-taking was seen in IT and auto space.
The BSE midcap index rose 0.45 percent, and the smallcap index gained 0.5 percent, underperforming the benchmark indices that rose by about 1 percent.
Technically, the index surpassed 15,600 but failed to close above it. There could be bouts of profit-taking but the trend still remains on the upside and the next target could be around 15,750-15,900 experts said.
On the global front: US consumer sentiment worsened in May against worries over rising inflation.
The latest reading of the University of Michigan Consumer Sentiment Index confirmed that consumer confidence deteriorated over the last month. The report came on the same day that US core inflationary data pointed to a sharp rise in prices during April.
The University of Michigan Consumer Sentiment Index fell to 82.9 in May from 88.3 in April but remained well above last May’s score of 72.3. Meanwhile, the expectations component fell to 78.8 in May from 82.7 in April but was significantly better than last year’s 65.9. The Current Conditions Index fell to 89.4 in May 2021 from 97.2 in April, while remaining ahead of last May’s 82.3.
Although higher inflation will diminish real incomes, the data still indicates an “exceptionally robust” outlook for consumer spending through mid-2022.
“While the growth of an inflationary psychology is unlikely, it cannot be entirely dismissed. Early preventative actions are much less costly, such as by hinting of a small rate hike; this could easily douse an incipient inflationary psychology. Indeed, two-thirds of consumers already expect higher interest rates. Higher inflation and higher unemployment each have uneven impacts across the population,” commented Curtin.
Data released on Friday showed US core inflation had jumped 3.1% in April versus a year ago, despite personal income dropping sharply as the impact of March’s stimulus package waned.
April’s 3.1% reading for the core personal consumption expenditures price index (core PCE), an inflation gauge closely watched by the Federal Reserve, surpassed economists’ expectations of a 2.9% rise and marks a substantial uptick from March’s 1.9% figure.
It also represents the biggest year-on-year increase in the index since the 1990s and is significantly ahead of the Federal Reserve’s 2% core inflation target.