Sensex, Nifty end flat as margin rules kick in; India VIX jumps 3%

Volumes remained thin as the 75 per cent peak margins norms come into effect from today

5:05 PM

MARKET OUTLOOK :: Sensex may hit 52,800 if it breaches 52,300

The market took a breather after rising for 9  consecutive days with the Nifty 50/ BSE Sensex 30 index closing below 15600/5200 levels.

 

However, it was a great day for the Adani group of stocks that ended with gains anywhere between  3 to 5 per cent.

 

Meanwhile  the move of the Nifty IT Index is encouraging and we suggest to accumulate technology stocks for this month.

 

We expect the Nifty/Sensex to visit the levels of 15,510/51,750 to 15,450/51,500. However,  if Nifty goes above 15,700/52,300 levels we could immediately reach 15,770/52,500 or 15,850/52,800 levels.

Views by: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities

 

 

4:51 PM

MARKET CLOSING COMMENT :: Volumes on Tuesday were nearly 10% lower than recent average

Indian markets had a lackluster session on 1st June, Tuesday.  As US markets were closed yesterday for the Memorial day – Nifty did not had any strong cues to begin with. After opening marginally higher, profit booking set in and finally it closed near yesterday’s levels.  At close, the Nifty was down 8 points at 15574.

 

Crude oil prices were sharply higher, with the international benchmark Brent topping $70 a barrel, amid optimism over the outlook for demand growth as the global economy recovers ahead of a meeting of major producers. The Organization of the Petroleum Exporting Countries and its allies, a grouping known as OPEC+, is due to meet later in the day. The cartel is widely expected to continue to gradually ease fuel supply curbs as planned over the next two months.

 

Most market in Europe and Asia advanced on Tuesday as China's factory activity expanded at the fastest pace this year in May. The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) rose to 52.0 last month, the highest level since December and inching up from April's 51.9.

 

The 75% peak trading margin norm by the Securities and Exchange Board came into effect from today. This is the third phase of implementing higher margin on day trading. It had its impact on volumes which were about 10% lower than recent averages.

 

Overall declining stocks outnumbered advancing and broader market were also subdued. 15700 is a key resistance for Nifty while support is at 15374.

Views by: Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities

4:38 PM

TECH VIEW :: Nifty forms Doji pattern; indecision in the markets may continue

The Nifty index witnessed small profit booking from higher levels and closed the day at 15,572. It has formed a doji sort of candle pattern on daily chart which suggests indecision in the markets. Going forward, 15,500 will be the first and strong support and any close below the said levels can hamper structure as we may witness rising trend line breakdown on hourly charts. Holding the above said levels, on the other hand, may see sustained positive momentum. Resistance is coming near 15,620-15,700 zone

Views by: Rohit Singre, Senior Technical Analyst at LKP Securities

4:24 PM

MARKET CLOSING COMMENT :: Benchmarks may see further consolidation

Markets ended almost unchanged in a choppy session, taking a breather after the recent surge. After the initial uptick, the benchmark drifted lower and remained in a narrow range till the end. A mixed trend was witnessed on the sectoral front wherein oil & gas, consumer durables and FMCG ended with decent gains while metal, banking and auto closed in the red. Amid all this, the Nifty index managed to settle flat at 15,575 levels.

 

It’s a healthy pause and we may see further consolidation in the benchmark in the following session. However, there’ll be no shortage of trading opportunities on the stock-specific front so traders should maintain their focus on identifying the sectors/stocks and accumulate them on dips. With the earnings season largely behind us, the markets would focus on global markets and upcoming monetary policy review meet for cues.

4:10 PM

MARKET RECAP :: Vinod Nair, Head of Research at Geojit Financial Services

Despite positive global cues and optimism from declining fresh covid cases, domestic bourses erased its early gains and traded flat owing to weak economic data. While upcoming RBI policy and likely delay in the start of monsoon season bought cautiousness to the momentum

4:00 PM

MARKET RECAP :: S Ranganathan, Head of Research at LKP Securities

Indices traded in a range and closed flat even as Corporate India has been announcing capital expenditure plans since the start of the fiscal. Weak PMI data released today did not help sentiments as we saw profit-taking across the Metal space today. In the broader market, we saw keen interest in select pockets of Textiles & Pharma names

3:55 PM

BSE Snapshot

3:54 PM

NSE Snapshot :: Top Nifty50 gainers of the day

3:51 PM

Index contributors :: Financials, RIL, HUL trim Sensex's losses

3:48 PM

Broader market :: S&P BSE SmallCap dips 0.3%; Rupa & Co, PNB Hsg, PNB Gilts up 20% each

3:46 PM

Broader market :: BSE MidCap index ends at 21,7601 levels, up 0.01%

3:44 PM

Sectoral trends on the NSE

3:42 PM

Sensex Heatmap at Close

Top gainers: ONGC, Bajaj Finance, SBI

Top losers: ICICI Bank, UltraTech Cement, Asian Paints

3:36 PM

CLOSING BELL

The benchmark S&P BSE Sensex settled at 51,934 levels, down 2.5 points. The NSE's Nifty50, on the other hand, ended at 15,575 levels, down 8 points or 0.05 per cent. Earlier in the day, the 50-share index hit a fresh record peak of 15,660.75.

3:30 PM

Bombay Stock Exchange signs pact with ESC to encourage listing of startups

Electronics and Computer Software Export Promotion Council (ESC) is an organisation sponsored by the Government of India with a mandate to promote the export of Information and Communications Technology (ICT) sector from the country and works as a bridge between the government and the industry on policy and promotional matters. READ MORE

3:19 PM

Breakout or breakdown? How to identify and analyse these chart patterns

Breakout and breakdown are two distinct aspects of technical analysis. Breakout means a bullish up move and breakdown suggests a negative (downside) move.

 

Both have their own significance in a trading setup, and hence, various strategies are developed to understand the breakout and breakdown patterns in the stock market. A breakout indicates an up move that conquers the resistance/ neckline/ selling pressure of assets. READ MORE

3:11 PM

Oil check :: Brent hovers around $71/barrel-mark

3:05 PM

Magma Fincorp hits 5% upper circuit for 2nd straight day, nears 52-wk high

Shares of Magma Fincorp were locked in 5 per cent upper circuit for the second straight day, up 5 per cent at Rs 143.05 on the BSE on Tuesday after the company appointed Adar Poonawala as its chairman as part of a management overhaul following the Poonawala-controlled Rising Sun Holdings acquiring a controlling stake in it. READ MORE

2:51 PM

May Auto Sales :: TVS Motor registers sales of 166,889 units vs 58,906 units in May 2020

>> Domestic sales in May 2021 is lower due to lockdowns in many states, but retails continue to be ahead of despatch.

>> Two-Wheeler: Total sales at 154,416 units in May 2021 as against sales of 56,218 units in May 2020. Of these, Motorcycle registered sales of 125,188 units (26,772 units in May 2020) and Scooter sales were at 19,627 units (16,120 units in May 2020). Domestic two-wheeler registered 52,084 units in May 2021 as against sales of 41,067 units in May 2020

>> Three-Wheeler: Sales at12,473 units in May 2021 as against sales of 2,688 units in May 2020. 

>> International Business: Total exports registered sales of 114,674 units in the month of May 2021 as against sales of 17,707 units in May 2020

2:42 PM

Credit losses set to decline for most Asia Pacific banks, says S&P

Credit losses are set to fall across most Asia Pacific banking systems over the next two years, S & P Global Ratings said on Tuesday. This is partly because targeted assistance to stretched borrowers will likely continue in many places until pandemic-related challenges substantially abate. READ MORE

2:32 PM

Q&A | Our base case projection for Nifty is 17,500 in 12-18 mths: Dhananjay Sinha

As the market is expecting a much better economic scenario in the post-Covid world, fiscal 2021-22 (FY22) and FY23 earnings may grow at an average rate of 27 per cent. Moreover, as the moderation in earnings will have any significant impact on the market. Hence, there could be around 15 per cent upside on Nifty. READ FULL INTERVIEW HERE

2:23 PM

NEWS ALERT :: Nucleus Software informs of server breach

>> A breach on our servers was noted and brought to our notice and a ransomware demand was made to us, the company informed exchanges.

 

>> We have already initiated steps to take care of the issues. Our cybersecurity team and a specialist team of cyber-specialists is already on the job. 

 

>> So far as sensitive data is concerned, we’d like to assure our customers that there is NO financial data of any customer available/stored with us and therefore the question of any leakage or loss of client data does not arise.

 

2:22 PM

MARKET UPDATE:: Broader indices underperform benchmarks; India VIX up 3%

2:15 PM

Q&A | Don't want to fly in private jet, own a yacht: Zerodha CEO Nithin Kamath

After building the country's largest and most-profitable pure-play brokerage, Nithin Kamath, founder and CEO of Zerodha has to stave off pressure from investors who want a piece of the company. Nithin and his brother Nikhil Kamath can take home a salary of up to Rs 100 crore each, according to a special resolution passed by the company’s board that was reported lasted last week. Seema Patil, Nithin’s wife who has been promoted to whole-time director, can expect the same salary deal as well. READ MORE

2:07 PM

Adani Enterprises shares hit new high; m-cap touches Rs 1.5-trillion mark

Shares of Adani Enterprises, the flagship company of Gautam Adani-led Group companies, hit fresh record high of Rs 1,371 apiece on the BSE after they rallied 4.2 per cent in Tuesday's intra-day session. It surpassed its previous record high of Rs 1,350.5 touched on May 19, 2021. At 1:40 PM, the stock of the firm was ruling 3.8 per cent highet at Rs 1,366 per share as against a 0.08 per cent gain in the benchmark S&P BSE Sensex. READ MORE

2:01 PM

Stocks that hit 52-week high on BSE today in an otherwise volatile market

Company	PRICE(rs)	52 WK HIGH	CHG(%)
A B B	1684.70	1751.00	1.01
Adani Enterp.	1365.60	1371.30	3.79
Aegis Logistics	347.40	364.35	-3.14
Balkrishna Inds	2180.30	2253.90	-0.93
Capri Global	522.45	537.00	13.40

1:51 PM

European markets check

(Source: Reuters)

1:38 PM

Most parts of India likely to get normal rainfall as IMD ups 2021 forecast

The India Meteorological Department (IMD) on Tuesday upped its 2021 monsoon forecast to 101 percent of the Long Period Average (LPA), meaning most parts of the country can expect to get normal to above normal rainfall. Rainfall between 96-104 per cent of the LPA is considered a normal rainfall. The forecast is with a model error of plus and minus 4 percent. The above normal forecast excludes except parts of East and North-East India. READ MORE

1:28 PM

May Auto Sales :: Maruti Suzuki sells 46,555 units vs 18,539 units YoY

1:17 PM

This oil & marketing distribution firm's stock has zoomed 133% in 15 days

Shares of Tide Water Oil (India) continued their northward movement, surging 10 per cent on Thursday to hit a new high of Rs 10,449 on the BSE on Tuesday. The stock has rallied 74 per cent in the past four trading days after the company -- engaged in oil & marketing distribution business -- said it will consider a stock split and bonus issue in the forthcoming board meeting to be held on June 10, 2021. READ MORE