Sensex ends choppy trade 77 pts higher; Adani Group cos sink up to 9%

In the broader markets, the BSE MidCap index ended the day in the red, down 0.7 per cent, amid steep losses in Adani Group stocks and BHEL

MARKETS: Sensex wipes off 500-point loss, trades 100 pts up; VIX jumps 4%

Stock market updates: Market bulls made a smart comeback on Dalal Street on Monday as brisk buying in Reliance Industries, Bajaj twins, L&T, and Infosys helped benchmarks recoup losses.

Indices started gap-down amid profit booking with the frontline S&P BSE Sensex and the Nifty50 dropping to lows of 51,936 and 15,606, respectively. However, positive cues from global peers, coupled with healthy buying in IT, PSU Bank, and select pharma and FMCG counters, helped the indices end the session in the positive territory.

The frontline Sensex index fluctuated 655 points before settling 77 points, or 0.15 per cent, higher from previous close at 52,551.5 levels. The Nifty50 index, meanwhile, settled at 15,812 levels, up 13 points or 0.08 per cent. India VIX index rose 4 per cent on the NSE today, suggesting high volatility in the markets.

In the broader markets, the BSE MidCap index ended the day in the red, down 0.7 per cent, amid steep losses in Adani Group stocks and BHEL while the BSE SmallCap index closed 0.2 per cent lower.

Among individual stocks, shares of Adani Group companies rebounded from their respective intra-day lows on Monday after the company clarified that the demat accounts of three foreign funds-Albula Investment Fund, Cresta Fund and APMS Investment Fund holding shares in group Companies 'are not frozen'. READ MORE

Besides, shares of Bharat Heavy Electricals Limited (BHEL) slipped 18 per cent to Rs 62.55 on the BSE in intra-day trade on Monday after the company reported a lower-than-expected set of numbers for the quarter ended March 2021 (Q4FY21). READ MORE

Sectorally, the Nifty PSU Bank index ended the day as the top gainer on the NSE, up 1 per cent, while the Nifty Realty index closed as worst performer, down 1.4 per cent.

Global markets

European shares hit a record high on Monday as investors bet on global central banks sticking to an accommodative stance on monetary policy even as the post-pandemic economic recovery gathers pace.

The pan-European STOXX 600 was up 0.3 per cent, Germany's DAX hit an all-time high, while the UK's FTSE 100 scaled its highest since February 2020 ahead of a decision by the government on whether to delay England's reopening from a third national lockdown.

In Asia, investors were seen taking a wait-and-see stance ahead of the Federal Reserve's meeting and economic indicators from the United States and China. Japan's Nikkei gained 0.74 per cent, and South Korea's Kospi added 0.09 per cent. China and Australian markets were shut for holidays.

Meanwhile, futures of all three main Wall Street indices indicated a positive start later in the day.

(With inputs from Reuters)

5:19 PM

MARKET STRATEGY :: Buying is advisable if the market drops to 15,700

The market opened higher today but liquidation in the positions of Adani Group of companies triggered massive selling and dragged Nifty to the level of 15606. Later the markets witnessed a gradual recovery which pulled the market back to the highest level of the day. It was completely unexpected to recapture the levels of 15800 but gains in Reliance, Infosys and Bajaj Finance made it possible.

The formation of the market is suggesting a bullish continuation. However, for that, the market would consolidate between the levels of 15850 and 15700. Once the market starts trading and sustaining above the levels of 15,850 then it would not be difficult for the market to conquer the levels of 16000/16050. Buying is advisable if the market drops to 15700/15720 levels. The Bank-Nifty has formed a Dragonfly Doji, which is bullish for the sector and for the market.

Views by: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Sec

5:04 PM

TECH VIEW :: Expect high volatility till Nifty doesn't cross 15,900

The short term trend of Nifty continuous to be positive and there is no indication of any reversal pattern unfolding at the highs. At the same time, the market is finding stiff resistance around 15800-15900 levels and sharp intraday profit bookings are triggering from the highs. Till Nifty decisively crosses above 15900 levels, the high volatility likely to be expected in the next 1-2 sessions. Immediate support is placed at 15670.

Views by: Nagaraj Shetti, Technical Research Analyst at HDFC Securities

4:53 PM

TECH VIEW :: Sumeet Bagadia, Executive Director at Choice Broking

On the technical front, the Index has taken support from 100-HMA which is placed at 15637 and bounced from there, which suggests strength for upside in the counter. On a four-hourly chart, the Index has confirmed a hammer candlestick pattern which further adds strength for upside direction. Moreover, an oscillator Stochastic has also suggested positive crossover, which indicates bullish strength for the near term. At present, the nifty seems to have resistance at around 16000 levels while immediate support comes at 15600 levels.

4:44 PM

MARKET OUTLOOK :: 15,737-15,890 seems to be the band for the near term

Indian equity benchmark indices recovered from their early losses in the second half of the session to close with small gains. The Nifty opened lower and fell to make an intra day low in the first twenty minutes of trade. Shares of some companies controlled by billionaire Gautam Adani plunged after a report said accounts of three Mauritius-based funds that own the group’s stocks have been frozen. The Nifty later started the slow recovery move up and ended the day in the positive. At close, the NSE Nifty 50 was up 12.9 points or 0.08% at 15,811.85.

Volumes on the NSE were in line with recent averages despite large amount of intra day volatility. Among sectors, Energy & IT gained the most while Realty and Power fell the most. BSE Midcap index fell 0.68%.

Nifty witnessed a massive intra day recovery from the lows suggesting that the upmove is not out of strength. However the intra day volatility was enough to prompt profit taking across the board resulting in a negative advance decline ratio. The street will now watch as to whether some more negative news will surface in the coming few days to prompt a more sustaining downmove. 15737-15890 seems to be the band for the near term.

Views by: Deepak Jasani, Head of Retail Research, HDFC Securities

4:28 PM

MARKET RECAP :: Vinod Nair, Head of Research at Geojit Financial Services

Though the domestic market opened on a negative note due to lack of positive cues, it recovered in the afternoon, led by heavyweights following positive global markets. WPI inflation for May rose to 12.94% reflecting a higher price of fuel and manufactured products along with a lower base. Fed policy meeting to be held on June 15-16 is expected to dominate investor behaviour in the coming days. Though the Fed is expected to keep its rates unchanged, the key focus of the market will be on its comment on inflation

4:21 PM

TECH VIEW :: Rohit Singre, Senior Technical Analyst at LKP Securities

After a volatile session, the Nifty index closed a day at 15,812 with minimal gains and formed a hanging man candle pattern on the daily chart. Strong strength has been seen in The Nifty from lower levels which suggest bulls managed to grab the opportunity from lower levels. Going forward, immediate base is coming near 15,750-15,650 zone. Any dip near the said levels will be a buying opportunity for the overall target of 16,000-mark. That apart, the immediate hurdle is coming near 15,900-16,000 mark and investors can expect profit booking on the higher side.

4:06 PM