New closing peak for indices; Nifty tops 15,750; Sensex gains 228 pts

Nifty50 hit record peak after a tweet by the Prime Minister's Office said PM Narendra Modi will address the nation at 5 PM later in the day

Illustration by Binay Sinha

Stock market updates: The domestic equity markets swung sharply on the upside in the afternoon deals on Monday after a tweet by the Prime Minister's Office said PM Narendra Modi will address the nation at 5 PM later in the day. Investors' confidence resonated in the markets as participants hoped the PM would throw a light on the state of the economy and may provide clarity on the vaccination drive.

That apart, Dalal Street was firmly in the grip of market bulls today as a little over 100,000 new Covid-19 infections across India in the past 24 hours, along with partial unlocking in key states like Maharashtra and Delhi, drove investors towards riskier assets.

Against this backdrop, the frontline S&P BSE Sensex hit the day's high of 52,379 while the Nifty50 touched record peak of 15,773. While the indices came off highs mildly, they still managed to end about 0.4 per cent higher. By close, the Sensex index was at 52,328.5 levels, up 228 points and the Nifty50 was at 15,751.6 levels, up 81 points.

In the broader markets, the BSE MidCap index hit fresh record peak of 22,739 in intra-day trade but closed at 22,690 levels, up 0.8 per cent. The BSE SmallCap index, on the other hand, hit record peak of 24,618 earlier today but ended at 24,609 levels, up 1.4 per cent.

Individually, shares of Bajaj Finance (BAF) ended 4.4 per cent to Rs 5,728 apiece on the BSE on Monday as the consumer financier voiced concerns over asset quality issues due to localised lockdowns following a second wave of Covid-19.

On the upside, shares of sugar companies were on a roll as Dalmia Bharat Sugar and Industries, Avadh Sugar & Energy, Triveni Engineering & Industries, Uttam Sugar Mills and Dwarikesh Sugar Industries rallied between 10 per cent and 19 per cent on the BSE in intra-day trade on Monday on the back of heavy volumes. Shree Renuka Sugars, Dhampur Sugar Mills and Balarampur Chini Mills also gained in the range of 8 per cent to 10 per cent.

Sectorally, the Nifty IT, Media, and Private Bank indices ended the session as top gainers, up around 1 per cent each, while the Nifty Metal index was the top loser, down 0.5 per cent.

Global markets

World shares were range bound on Monday as markets digested Friday’s disappointing US jobs report and a global tax deal between the G7 group of countries, while also looking ahead to inflation data due this week.

MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.05 per cent, Japan's Nikkei edged up 0.3 per cent, while Taiwan stocks lost 0.4 per cent. Chinese blue chips were also off 0.1 per cent.

In Europe, the pan-European STOXX 600 index was flat in early deals.

(With inputs from Reuters)

5:41 PM

MARKET OUTLOOK :: There's volatility in Bank Nifty

For the third consecutive day, the market has managed to register a new high. Today, the Nifty went to 15773/52378, before again correcting back to 15750/52330 levels. However, the trading range is not expanding, which is an indication of cautiousness at higher levels. Today, the power and energy-related stocks did extremely well, we saw some interesting buying in technology companies. The market breadth remained strong.

The Bank-Nifty closed around the opening levels for the day, bringing huge volatility in tomorrow’s date. Technology stocks closed at the highest point of the day. Technically, 15750/15800/(52300/52400) would be major obstacles for the market and sustenance above 15800/52400 levels, would invite short covering in the market. Below the levels of 15700/52300, Nifty would fall to 15600/52000 or 15550/51850 levels.

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

5:27 PM

TECH VIEW :: Nagaraj Shetti, Technical Research Analyst at HDFC Securities

The short term trend of Nifty continues to be positive with range bound movement. There is a possibility of further upside in the coming sessions. The next upside levels to be watched around 15950-16000 levels and this could be achieved in the one week. Immediate support is placed at 15650.

5:19 PM

TECH VIEW :: Nifty may face resistance at 15,850 levels

Technically, the Index has been trading in Higher Highs & Higher Lower formation, which suggests a continued upside move in the index. Moreover, the index has been trading continuously above the Ichimoku Cloud formation, which confirms that the bullish trend may continue for the long term. A momentum indicator MACD is also trading with a positive crossover as well as above the zero lines. At present, the nifty seems to have resistance at around 15850 levels while immediate support shifted up to 15650 levels.

Views by: Sumeet Bagadia, Executive Director, Choice Broking.

4:58 PM

Global markets round-up

Oil in New York hit $70 a barrel for the first time since October 2018 as upbeat comments on the market from major trader Vitol Group added to optimism over the global demand recovery.

Asian shares turned sluggish on Monday as relief over a benign U.S. jobs report was offset by caution ahead of key inflation data, while a coronavirus outbreak in Taiwan took an increasing toll on hard-pressed chip makers. European stocks edged back from record levels on Monday, easing from all-time highs with commodity shares leading declines as sentiment soured after weaker-than-expected China trade data and worries about inflation.

Data out of Beijing showed China's imports grew at their fastest pace in 10 years as it sucked up resources, a boon for everything from copper to iron ore prices. China's exports in dollar terms in May grew 27.9% from a year earlier, slower than the 32.3% growth reported in April and missing analysts' forecast of 32.1%. Imports increased 51.1% on year last month in dollar terms, the fastest growth since January 2011 but slower than the 51.5% rise tipped by the Reuters poll.

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

4:44 PM

TECH VIEW :: Ashis Biswas, Head of Technical Research at CapitalVia Global Research

The market witnessed some lackluster movement and an attempt to hold the support level around the Nifty 50 Index level of 15700. Trading above 15700 is positive from a short-term perspective. Sustaining above 15700 levels, the market expects to gain momentum, leading to an upside projection till 15870-15900 level. The momentum indicators like RSI and MACD supporting the trend and indicating potential upside from the current market level.

4:33 PM

MARKET CLOSING COMMENT :: Ajit Mishra, VP - Research, Religare Broking

Markets started the week on an optimistic note amid supportive global cues. The benchmark traded with positive bias throughout the day and healthy buying was seen across sectors. Further, the news of a steady fall in new COVID cases and announcements of easing in restrictions by several states boosted sentiment. Consequently, the Nifty inched further higher and ended at 15,752 levels, up by 0.5%. On the broader front, midcap and smallcap, outperformed and gained in the range of 0.8-1.4%.

All eyes are on PM Modi’s speech scheduled in the evening, for details on the vaccination drive and the roadmap for further ease in restrictions. And, we may see the reaction of the same in early trade tomorrow i.e. June 8.

On the benchmark front, we feel the recent underperformance from the banking space is certainly weighing on the sentiment and might trigger some profit taking too. However, buoyancy in other sectors viz. energy, IT and auto would cap the fall. Amid all, we advise continuing with bullish bias and use dips to add quality names.

4:16 PM

MARKET RECAP :: Winners and losers of today's session

Domestic equities extended its gains in today’s volatile session ahead of PM Modi’s address to the nation. Hopes of easing restrictions and Centre’s covid-19 vaccination policy pumped optimism into the market. Global markets were mixed with US futures trading in red ahead of the inflation data due this week and the tax deal between the G7 advanced economies. Barring metal and pharma, all major sectoral indices belled the day in positive terrain with energy, utilities and power stocks leading the rally

Views by: Vinod Nair, Head of Research at Geojit Financial Services.

4:05 PM

MARKET RECAP :: S Ranganathan, Head of Research at LKP Securities

Bulls wrested complete control over the proceedings today as Indices ended in the Green. The broader market displayed buoyancy across multiple diverse themes ranging from Unlock Themes, Cement, Sugar, Defence, Power & Pathology among others.

4:00 PM