Nifty ends at new closing peak of 15,436; Sensex adds 308 pts; RIL soars 6%

Broader markets, however, settled the day in the red on the back of profit-booking. The BSE Midcap index fell 0.12 per cent and the BSE SmallCap index dropped 0.48 per cent

5:10 PM

MARKET CLOSING COMMENT :: Deepak Jasani, Head of Retail Research at HDFC Securities

ndian benchmark equity indices ended higher on May 28 with Nifty starting June F&O series on strong note. In the process it formed an all time high and all time closing high. Nifty opened higher with an upgap and went zigzag through the day before closing below the intra day high. At close, the Nifty was up 97.80 points or 0.64% at 15435.70.

 

Volumes on the NSE were a little below recent averages. Among sectors, Oil & Gas rose the most with Reliance contributing the most, while Power & Healthcare fell the most. BSE Midcap and Smallcap indices ended marginally lower.

 

Nifty closed the week 1.72% higher for the second consecutive week. The upmove in this week has been gradual and the advance decline ratio turned negative on May 28 after 5 days. This suggests some much needed profit taking in the broader market has occurred. Nifty after closing at the all time high could consolidate the recent gains before inching up higher. US markets are shut on Monday and hence Indian markets will not have their performance to track over Monday and Tuesday. Nifty could over the next few days rise towards 15600 while 15300-15327 band could offer support. 

4:51 PM

Why has Sensex failed to hit all-time-high?

The Nifty eventually touched a new high above 15431 level but the Sensex is still behind by 1,000 points at 51,400 and the main reason is the underperformance in HDFC and HDFC Bank. However, in the coming days we could see the rally in HDFC twins and in those stocks that have underperformed in the current upmove.

The Nifty has managed to break the 15430 level after 16 weeks of consolidation. This is the biggest and time consuming consolidation which will definitely give a good support to the market and we can see a further increase above 15000.

According to Weekly and Daily formation, the Nifty can stop once between 15,500 and 15,600 levels. The 15,250 and 15,100 are big pillars for the market and as long as the Nifty stays above 15,100, we can see the level of 16,000 to 16,200. The strategy should be to buy on dips. Bank-Nifty is also showing strength and we can see the level of 36500 in the coming weeks. Bank-Nifty's main support is 34400 and 34000.

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

4:39 PM

TECH VIEW :: Nagaraj Shetti, Technical Research Analyst at HDFC Securities

Nifty on the weekly chart formed a long bull candle, after an upside breakout of the multi-month trend line resistance in the previous week around 15K mark. This pattern could be a validation of upside breakout on the weekly chart.

 

The short term trend of Nifty continues to be positive. Having moved above the resistance at 15430, one may expect further upside in the coming sessions. The next upside targets to be watched are around 15800 (pattern target of broader high-low range breakout at 15000-14200 levels) and this could be achieved in the next one week. Immediate support is now placed at 15350-15300 levels.

4:30 PM

MARKET OUTLOOK :: Trade set-up for next week

Nifty50 index crossed lifetime highs and closed the week on a positive note. However, this week’s upmove was slow and lacked strength. It is likely the benchmark index could face resistance at higher levels. The bulls are getting tired as the index is trading much higher than its mean levels. Hence, a brief corrective dip cannot be ruled out. 15,160 is the immediate support level for Nifty. 

Expectations for the Week

 

Developments surrounding inflation continue to be on everyone’s watch. The opening up of our economy will have a hold over how the demand shapes up. The true picture of the damage by the second wave will only be visible in the June quarter results but until then management commentaries will continue to guide the Street. With no concrete triggers in place yet, markets continue to look for a strong reason to advance towards the unknown atleast in the near-term. Therefore, investors should seek selective bets, and wait for corrective moves before investing for long term.

Views by: Nirali Shah, Head of Equity Research at Samco Securities

4:16 PM

MARKET VIEW :: Momentum indicators suggest potential upside

After a day of lackluster movement, the market witnessed a positive trend in today's activity. The expected levels of the market are likely to be in the range of 15250 and 15600, and it's going to crucial for the short-term market scenario to sustain above the 15250 Nifty50 Index level. The momentum indicators like RSI and MACD supporting today's momentum and indicate potential upside from the current market level.

Views by: Ashis Biswas, Head of Technical Research at CapitalVia Global Research

 

4:02 PM

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

Constant fall in US dollar is driving the Indian equity market in addition to the falling infection rate. The sustenance of the rally is supported by the recent improvement in foreign investment with the stabilizing US yield and drop in the dollar index. The Indian Rupee is regularly appreciating against USD.

3:53 PM

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

Markets remained in the green as investors basked in the glory of the $3-trillion market cap which was achieved with ease thanks to the broad-based rally across market capitalisation. With FIIs being net sellers during April and May the appetite shown by domestic investors is getting reflected in the buoyancy across the market breadth. Today's Trade was led by the big boys - Reliance and HDFC twins as we did see profit-taking across Midcaps post-RBI comments on the consequences of liquidity infusion during the Pandemic

3:51 PM

Stocks that hit 52-week high on BSE today

Company	PRICE(rs)	52 WK HIGH	CHG(%)
ABB Power Produc	1904.70	2201.60	-0.95
Alkyl Amines	3792.20	3987.25	-1.77
Avanti Feeds	579.00	595.35	-1.04
Bajaj Finserv	11686.20	12021.00	-1.66
Bharat Forge	678.00	694.60	-0.72

3:50 PM

Top gainers on the BSE at close

Company	PRICE(rs)	CHG(%)
Redington India	219.05	19.99
Lux Industries	3201.00	14.41
Metropolis Healt	2498.60	8.72
SIS	434.45	7.31
Deepak Fertiliz.	307.75	5.90

3:48 PM

BSE Snapshot

3:46 PM

Broader markets:: S&P BSE MidCap and SmallCap indexes underperform benchmarks

3:43 PM

NSE Snapshot:: Top Nifty50 gainers today

3:41 PM

Sensex contributors:: Heavyweights RIL, HDFC twins, and Kotak Mahindra Bank lead Sensex higher

3:39 PM

Sectoral trends on the NSE:: Nifty PSU Bank index, up 0.7 per cent, leads gainers; pharma stocks decline

3:38 PM

Sensex Heatmap at close

Top gainers: Reliance Industries, Mahindra & Mahindra

Top losers: Sun Pharma, Bajaj Finserv

3:36 PM

CLOSING BELL

The benchmark S&P BSE Sensex settled at 51,422, up 308 points from previous day's closing. On the NSE, the Nifty50 ended at a fresh record closing high of 15,436, up 98 points.

3:23 PM

EXPERT TAKE :: Sector rotation will play a crucial role to generate alpha in the near term

The market is cheering the downward trajectory of the Covid-19 curve as the recovery rate since the last few days has been faster compared to the new cases. With the improvement in the Covid-19 curve, India is playing catch-up with the global market, with broader market outperformance seen during the month, in which smaller companies have outperformed the large caps.

If the government is able to arrest Covid 2.0 spread completely in the next 15-30 days, then the unlock trade will play in the market and the current rally will sustain. Any delay in unlocking the economy beyond June will be a key risk in the near term. We could see some profit booking, as today's market has crossed its previous high, but the long term structural story is intact for the Indian market. Broader market looks attractive at the current level and the sector rotation will play a crucial role to generate alpha in the near term.

Views by: Naveen Kulkarni, Chief Investment Officer at Axis Securities

3:17 PM

MARKET UPDATE:: India VIX cools off 12%

3:11 PM

Travel firm Thomas Cook India fourth quarter loss widens to Rs 20 crore

Travel services provider Thomas Cook India has reported widening of consolidated net loss to Rs 20.23 crore for March quarter 2020-21, impacted by the pandemic.

 

The company posted a net loss of Rs 13.90 crore for the year-ago period, Thomas Cook said in a late night regulatory filing on Thursday. READ MORE

3:02 PM

Sensex climbs off highs

2:49 PM

M&M posts Q4 profit Rs 163 crore; announces dividend of Rs 8.75 per share

Mahindra & Mahindra, on Friday, reported consolidated profit of Rs 163 crore for the March quarter of 2020-21 (Q4FY21), which was impacted by one-time loss of Rs 840 crore. In comparison, M&M had reported a loss of Rs 3,255 crore in the year-ago quarter. The company has also announced highest-ever dividend of Rs 8.75 per share for FY21, to commemorate the 75th year of the company. READ MORE

2:42 PM

NEWS ALERT :: Conditions seen favourable for monsoon onset over Kerala May 31, says IMD

2:30 PM

NEWS ALERT :: Commercial international flights banned till June 30

2:29 PM

March Quarter Results :: M&M

>> One-time loss: Rs 890 crore

>> PAT: Rs 163 crore

>> Revenue: Rs 13,510 crore

2:28 PM

Anand Rathi on J Kumar Infraprojects

With workforce migration starting as early as 15th Mar’21, the impact of second wave of Covid was more pronounced for J Kumar’s urban-focused OB. The Q4 desired scale being missing, profitability was under duress.

Input price pressure, too, was evident. Nevertheless, with the pass-through mechanism in place and as the workforce returns, profit/growth are likely to return sooner than later. A net cash balance sheet and sturdy revenue assurance too would help.

Nevertheless, estimates have been pruned due to the second wave; consequently, the target price is lowered to Rs221 a share. Our Buy rating stays on not-so-demanding valuations, and an anticipated brighter future.

2:26 PM

Edelweiss on Polyplex Corporation

While the stock has been up 2.4x in two years since our initiation, with BOPET industry supply CAGR at 12% over CY20-22E, we as well management anticipate margin pressure towards end FY22 and FY23. Though strong capacity addition should support 13% sales CAGR, due to margin pressure we estimate mere 1% EBITDA CAGR over FY21-23, post a strong 38% in FY21. Hence, downgrade to ‘HOLD’, valuing it at 3.5x Q2FY23E EV/EBITDA with revised target price of Rs 1,100

2:24 PM

Nomura on BPCL

2:22 PM

Jefferies on V Guard

2:20 PM

Antique on Eicher Motors

We expect Royal Enfield RE sales volumes to grow at 23% CAGR over FY21-24E, led by new model launches. In the commercial vehicle business, Volvo-Eicher Commercial Vehicle (VECV) has gained market share across segments and in the heavy-duty segment it achieved highest ever market share of 6.9%. We maintain BUY rating with a revised price target of Rs 3,200 (previously Rs 3,300).

2:18 PM

Elara Capital on cement sector

Stringent measures taken by government authorities to contain the Second Wave have caused demand disruption. However, we believe a lot of pent-up demand has built up due to these lockdowns, and, thus, a gradual lifting of lockdown in June, led by declining COVID-19 cases, will bolster construction activities. Therefore, we believe these disruptions are short-lived and the cement industry is well placed to post healthy demand growth in FY22.

Further, amid an unfavorable demand scenario, there has been concern for the industry of rising operating cost, due to unfavorable fuel prices. Thus, in our view, a strong pricing scenario with further price hikes would be critical for the industry to sustain margin.  

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