Dear Trader…
Markets opened the week on a strong footing,
rallying nearly 4%, driven by supportive global and domestic cues. The key
trigger was the announcement of a ceasefire between India and Pakistan over the
weekend, signaling easing geopolitical tensions. Adding to the positive
sentiment were encouraging updates on the US-China trade deal, which further
boosted investor confidence as the session progressed. All major sectors
contributed to the rally, with IT, realty and metals leading the gains. The
broader markets also mirrored this strength, each advancing close to 4%.
The easing of geopolitical concerns and progress
on global trade talks brought significant relief to the markets, reflected in a
sharp drop in the India VIX volatility index. Technically, the sharp rise in
the Nifty marks a continuation of the uptrend following a three-week
consolidation phase. In light of the
widespread buying momentum, a “buy on dips” strategy remains prudent. Investors
should focus on selecting stocks based on the relative strength of specific
sectors and prevailing market themes.
Nifty futures opened at 24476 points against the
previous close of 24065 and opened at a low of 24410 points. Nifty Future
closed with an average movement of 659 points and a rise of around 978 points
and 25044 points…!!
On the NSE, the midcap 100 index will rise 4.12% and smallcap 100 index is closing rise 4.24%. Speaking of various sectoral indices IT, Realty,
Metal, Financial Services, Auto, PSU Bank, Privet Bank Media and Consumer
Durables stocks saw heavy gains on the NSE, while all other sectoral indices also
closed higher.
At the start of intra-day trading, June gold
opened at Rs.95500, fell from a high of Rs.95500 points to a low of Rs.92389 with
a decline of 3555 points, a trend of around Rs.92963 and July Silver opened at
Rs.96210, fell from a high of Rs.96650 points to a low of Rs.93867 with a decline
of 1529 points, a trend of around Rs.95200.
Meanwhile,
all sectoral indices ended in the green, showing
a broad-based recovery across sectors. Even the Nifty Pharma index, which had
opened with a 2 per cent loss after US President Donald Trump’s comments about
slashing drug prices by up to 80 per cent, managed to close 0.15 per cent
higher as the market shrugged off the concerns.
Leading the charge were the Nifty IT and Nifty
Realty indices, which rose 6 per cent and 7 per cent respectively. Midcap and
smallcap stocks also joined the rally, outperforming the broader market with
gains of 4.1 per cent each.
The total market capitalisation of all companies
listed on the BSE climbed to Rs 432.47 lakh crore, up from Rs 416.52 lakh crore
in the previous session — a gain of Rs 16 lakh crore in a single day.
Technically,
the important key resistances are placed in Nifty future are at 25044 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 25108 – 25202 levels. Immediate support is placed at 24880
– 24808 levels.
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