“Today’s Market Highlights”
Market seems to be taking a breather after the run up seen in the last week, as we ended the May month on a high note, we welcomed the June month on a flattish note as Asian markets were trading flat and the US markets were closed yesterday. Nifty post the flat opening today, witnessed a volatile trading session during the day as traders were held back amid lack of market triggers and the India VIX also gained momentum, witnessing a spike post a 3-day cool-off. The Nifty corrected almost 100 points in intraday, pausing in it’s positive momentum over the last 7 straight days, to end on a marginally lower note.
Broader Market Movement
The broader markets, midcap, and smallcap indices also closed lower, except for IT, Media and Pharma, all other sectoral indices ended in the red, of which the private bank index was the top loser. Whereas on the stock specific side, amongst Nifty 50, Adani Ports and ONGC were the top gainers, ending with gains of more than 3%, whereas JSW Steel, Tata Steel and ICICI Bank were among the top losers.
Stocks in News Today
The sectors or stocks that were in news today were the Auto and Metals sector. Starting with the Metals sector, which came under pressure amid downgrades from brokerage firms, On the other hand, the Auto sector companies were set to declare their monthly sales data. Shares of Adani Enterprises, the flagship company of the Adani Group, hit fresh record high of Rs 1430 apiece, as the stock rallied more than 7 percent in Tuesday’s intra-day session, whereas the PSU banking giant, State Bank hit new 52-week highs as the stock is up 160% in the last one year (period from May 2020 to May 2021) and a year to date gain of nearly 55%. Shares of Bajaj Auto gained over 2 percent in the morning session after the company saw a robust sales growth for the month of May.
Domestic Economic Data
On the domestic economic front, India’s Manufacturing PMI fell to a ten-month low of 50.8 in the month of May from 55.5 in the previous month, amid a resurgence of the second wave of the COVID-19 cases in the country and its impact on the economy.
Global Data Front
On the global front, The US markets are poised to begin trading post a long weekend, whereas the European markets (DAX and CAC 40) on Tuesday hit fresh record highs, after the Euro zone manufacturing activity data expanded at a record pace of 63.1 levels in May from 62.90 in the April month.
Finally to conclude,the Nifty ended the day @ 15574, marginally down 7 points, as private banks and metal stocks dragged the index lower. Going forward the levels to watch for Nifty in the coming days, with support placed at 15450 and resistance placed at 15700-15750 levels.
Mr. Aamar Deo Singh
Head Advisory, Angel Broking Ltd
01st June 2021