Sensex, Nifty stage smart recovery in fag-end; IT stocks weak, auto rally

CLOSING BELL, JUNE 6, 2023: IKIO Lighting IPO sailed through on the first day itself with 1.2 times subscription till 3:30 PM

Photo: Bloomberg

Stock Market Highlights: Benchmarks stayed in the red zone for better part of the day on Tuesday, bogged down by information technology (IT) shares. However, staging a smart rebound in the last few minutes, the S&P BSE Sensex settled 5 points higher at 62,793, while the Nifty50 saw gains of 5 points at 18,599.

Tech M, Infosys, TCS, HCL Tech, and Wipro fell between 1 and 2 per cent, while ONGC, Hindalco, Coal India, ICICI Bank, Nestle India, Bharti Airtel, and HDFC twins slipped up to 1 per cent.

Kotak Bank, Axis Bank, Maruti Suzuki, Tata Motors, and ITC, up between 0.5 per cent and 2 per cent, led the recovery.

The broader markets, however, saw decent gains with the BSE MidCap and SmallCap indices advancing 0.29 per cent and 0.42 per cent, respectively.

IPO Mart :: IKIO Lighting

The three-day issue of IKIO Lighting sailed through on the first day itself. The non-institutional investors' (NII) portion was subscribed nearly 2 times till 3:30 PM, followed by retail quota (1.35x), and QIB (29 per cent).

4:12 PM

COMMENT:: RBI growth, inflation forecast likely to set near-term trend

"The domestic market experienced profit booking due to selling pressure in the IT sector. IT stocks witnessed a decline in anticipation of further downward revision in spending. However, a rally in auto and banks helped to recover the losses. Going ahead an important influencer will be the commentary on growth and inflation forecasts by the RBI following its MPC meeting given the general consensus that rate pause will continue."

- Vinod Nair, Head of Research at Geojit Financial Services

4:12 PM

VIEW:: Key support for Nifty stands at 18,500

"During the observed period, the Nifty index exhibited high levels of volatility, but its movement was confined within a narrow range. On the daily chart, it formed a doji candle, indicating indecision in the market. As a result, the overall trend is expected to remain sideways, with the index not showing a clear direction in its movement. In terms of levels, there is a support level at 18,500, which suggests a potential floor for the index, while a resistance level is identified at 18,665, indicating a barrier to further upward movement."

- Rupak De, Senior Technical Analyst at LKP Securities

4:11 PM

VIEW:: Bank Nifty likely to trade sideways for now

"The Bank Nifty exhibited high volatility while trading within a narrow range during the observed period. On the daily chart, it formed a doji candle, signaling market indecision. This suggests that the overall trend is expected to remain sideways, without a clear direction in the index's movement. A support level is identified at 44,000, and if the index falls below this level, it might correct down towards 43,700. On the other hand, resistance levels are observed at 44,300 and 44,500, acting as barriers to further upward movement."

- Rupak De, Senior Technical Analyst at LKP Securities

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