Dear
Trader…
The 30-share BSE benchmark Sensex gained 1196 points, or
1.61%, to settle at 75,418. The broader NSE Nifty future surged 350 points, or 1.54%,
to end at 23,008.About 1,762 stocks gained, 2,071 declined, and 112 remained
unchanged on the BSE.
When the stock market opened for trading today, investors had
cues from two central bankers to choose from – world’s most powerful Jerome
Powell, who runs the US Federal Reserve, and RBI Governor Shaktikant Das. Ignoring
Fed officials’ concerns over lack of progress on inflation as revealed in Fed
minutes, the bulls chose to focus on the bumper dividend of Rs 2.1 lakh crore
announced by the India’s central bank for the government.
As a result, Sensex jumped over 1,200 points to hit a fresh
high above 75,400 while Nifty also rallied 1.64% to come within kissing
distance of never-seen-before level of 23,000. Investors were left richer by Rs
4.15 lakh crore as the total market capitalisation of all companies listed on
BSE jumped to about Rs 421 lakh crore.
Nifty Bank outperformed and jumped 2% while PSU rail and
defence stocks also rose in anticipation of increased capex push. GRSE, Cochin
Shipyard and Mazagon Dock rallied up to 20%. PSU rail stocks like RVNL and IRFC
ended 9% and 6% higher, respectively.
PM Modi’s statement –
While stating that investors are well aware of
the pro-market reforms implemented, PM Modi said these reforms have created a
robust and transparent financial ecosystem, making it easier for every Indian
to participate in the stock markets.”I can say with confidence that on
June 4, as BJP hits record numbers, the stock market will also hit new record
highs,” PM Modi said.
Nifty futures opened at 22650.00 points against the previous
close of 22657.95 and opened at a low of 22650.00 points. Nifty Future closed
with an average movement of 375 points and a rise of around 350 points and closed
23008.00 points…!!
At the start of intra-day trading, June gold opened at Rs.72681,
fell from a high of Rs.72681 points to a low of Rs.72111 with a decline of 696 points,
a trend of around Rs.72335 and July Silver opened at Rs.92840, fell from a high
of Rs.92840 points to a low of Rs.90340 with a decline of 1425 points, a trend
of around Rs.91588.
Meanwhile,
The higher-than-budgeted RBI surplus transfer
would help to boost the government of India’s resource envelope in FY2025,
allowing for enhanced expenditures or a sharper fiscal consolidation than what
was pencilled into the Interim Budget for FY2025. Increasing the funds
available for capex would certainly boost the quality of the fiscal deficit.
Despite continuous selling by FIIs in the cash market, I expect
that foreigners may shift to buying, which would provide additional support to
the market.
Technically, the
important key resistances are placed in Nifty future are at 23008 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 23088 – 23202 levels. Immediate support is placed at 22880 –
22808 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
