Dear
Trader…
The 30-share BSE benchmark Sensex advanced 2,507 points or
3.4% to settle at 76,469. The broader NSE Nifty gained 749 points or 3.30% to
end at 23,450.
This surge followed exit polls over the weekend projecting a
third term for Prime Minister Narendra Modi’s government in the recently
concluded general elections.
Indian benchmark equity indices Nifty future and BSE Sensex
at record highs, hitting over 23,844.00 and 76,738.89 mark, respectively, on
Monday.
Meanwhile, the market capitalisation of all listed companies
on BSE surged by Rs 14 lakh crore to Rs 426.1 lakh crore.
All major sectors advanced. Financials climbed 4% to a record
high, while public sector banks surged 8.4%. Nifty Oil & Gas also gained
about 6.8%, while Nifty Realty surged nearly 6%. The broader, more
domestically-focussed small- and mid-caps gained about 2.4% and 3.2%
respectively.
Almost all exit poll surveys indicate that the BJP is likely
to win the Lok Sabha election on June 4th. The average of all major exit polls
suggests that the BJP-led NDA will secure 374 seats.
Data on Friday, which showed the economy grew a
better-than-expected 7.8% in the January-March quarter, also helped sentiment.
Global
Markets –
European stocks bounced and government bond yields dropped on
Monday as investors looked forward to an interest rate cut from the European
Central Bank (ECB), while US jobs data kept the focus squarely on inflation.
The pan-European STOXX index was up 0.6%, while
US stock futures also rose. In bond markets, the US 10-year Treasury yield was
down 4 basis points to 4.47% and German yields, which touched six-month highs
last week, also dropped.
Rupee
Strengthens – The Indian rupee rallied on Monday
to log its best intraday performance since December 2023 after exit polls
projected a third term for NDA alliance, boosting investor confidence. The
rupee closed at 83.1425 against the US dollar, up nearly 0.4% on the day, its
best intraday percentage gain in more than five months. The local currency rose
to a peak of 82.9575 in early trading but eventually trimmed gains.
Nifty futures opened at 23501.65 points against the previous
close of 22700.70 and opened at a low 23161.70 points. Nifty Future closed with
an average movement of 682.70 points and a decline of around 749.30 points and
closed 23450.00 points…!!
Oil
Prices Fall – Oil prices fell on Monday amid
investors weighing a move by producer group OPEC+ to extend deep output cuts
well into 2025. Brent futures for August delivery were down 23 cents, or 0.27%,
to $80.88 a barrel, after falling to a session’s low of $80.55. U.S. West Texas
Intermediate (WTI) crude futures for July delivery slipped 26 cents, or 0.34%,
to $76.76, after falling to $76.39 earlier.
At the start of intra-day trading, June gold opened at Rs.71501,
fell from a high of Rs.71620 points to a low of Rs.71178 with a decline of 336 points,
a trend of around Rs.71550 and July Silver opened at Rs.91125, fell from a high
of Rs.91900 points to a low of Rs.89992 with a rise of 274 points, a trend of
around Rs.91883.
Meanwhile,
On the daily timeframe, the index has formed a
Hanging Man candlestick pattern, which represents trend reversal but in the
near term, it is the general election’s outcome likely to influence the market
trend which will lead to immense volatility.
Exit poll has activated the optimism of a memorable win for
the ongoing government, PSUs had a humongous rally, in anticipation of
continuation of the reform gains, triggering further re-rate.
Technically, the
important key resistances are placed in Nifty future are at 23450 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 23570 – 23808 levels. Immediate support is placed at 23170 –
23008 levels.
Past Performance is not an Indicator of Future Returns. The
securities quoted are for illustration only and are not recommendatory.Investment
in securities market are subject to market risks. Read Disclaimer and related
all the documents carefully before investing, mentioned on www.nikhilbhatt.in
