Dear Trader…
Indian equity benchmarks continued to trade in high spirit in today session, on account of broad based buying in blue chip counters. Most of the sectoral indices were trading firm and Energy was the top gainer on BSE, up by around 3% followed by Realty and Metal indices, trading up over 1%. Apart from blue chips, broader indices too equally participated in the rally with both mid and small cap indices trading up by over 0.50% each.
Sentiments were upbeat with Revenue Secretary Tarun Bajaj’s statement that Indian economy has not suffered as much this year amid the second wave of COVID-19 as compared to last year when there was complete lockdown. Traders seem to have over looked report that foreign portfolio investors (FPI) turned out to be net sellers for second month in a row by taking out nearly Rs 1,730 crore from Indian markets in May as second wave of the coronavirus pandemic.
Nifty futures opened at 15458.00 points against the previous close of 15463.85 and opened at a low of 15410.00 points. Nifty Future closed with an average movement of 189.60 points and a rise of around 107.20 points and 15571.05 points .. !!!
On the NSE, the midcap 100 index will rise 0.31% and smallcap 100 index is closing rise 0.14%. Speaking of various sectoral indices, only Auto, IT, Media and PSU Bank stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, June gold opened at Rs.48690, fell from a high of Rs.48895 points to a low of Rs.48540, with a rise of 223 points, a trend of around Rs.48765 and July Silver opened at Rs.72000, fell from a high of Rs.72144 points to a low of Rs.71969, with a rise of 370 points, a trend of around Rs.71981..!!
Benchmark indices hit record highs in today’s trading session with Nifty future touching all-time high of 15,599 intraday, led by Reliance, which has broken out of the consolidation zone, and since it has a major weightage in Nifty, its positive movement is bound to be good news for the markets. Banking & IT stocks have also supported the current rally, including the likes of SBI, ICICI Bank, Axis Bank, TCS & Infosys, to name a few. Even the derivatives data continues to be extremely bullish, which further adds to the up move. And all this on the day, when Asian markets remain weak.
Receding lockdown fears and hope of better economic recovery in coming quarters, is supportive. However, as markets are at record levels, they generally tend to be extremely volatile, so caution should not be abandoned.
Technically, the important key resistances are placed in Nifty future are at 15571 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 15676 – 15707 levels. Immediate support is placed at 15474 – 15404 levels.
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