Stock Markets, June 4: Sensex crashes 4,390 pts, Nifty gives up 22k on sub-par BJP tally in LS polls

Stock Market Highlights on June 04: In the broader markets, the BSE MidCap, and SmallCap indices sank up to 12 per cent intraday before settling up to 8 per cent lower

4:08 PM

Tech View :: Sensex has next support at 71,000

Technically, after early morning sharp selloff, the market breached the crucial support of 20-day SMA (Simple Moving Average) 74000 and post breakdown the selling pressure intensified.  

 

In addition, on daily charts, the index has formed long bearish candle and is also trading below short term and medium term averages, which is largely negative.

For the traders now, 50 day SMA (73,500-74,000) would be the key resistance areas while 71,000-70,200 would act as key intraday supports zones.

We are of the view that the current market texture is extremely volatile and uncertain; hence, it is advisable that traders should remain cautious for next few trading sessions.

Views by: Shrikant Chouhan, Head Equity Research, Kotak Securities

4:05 PM

Tech View :: Where are Nifty, Bank Nifty headed after June 4 crash?

Nifty50
The Nifty has decisively broken down below the previous swing low of 21,820 which has violated the higher top and higher bottom formation and suggests change in short term trend.

Our primary outlook is that Nifty shall now retrace the rise it has witnessed from 18,840 to 23,340 between the period October, 2024 to May, 2024.

The crucial support levels to keep handy are 21,100 which is the 200-day moving average and 50% Fibonacci retracement level of the entire upmove. A close below this support zone can lead to further decline towards 20,560 which is the 61.82% Fibonacci retracement level. On the upside, 22,310 – 22,550 shall act as an immediate hurdle from short term perspective. The range of consolidation is likely to be 21,000 – 22,500.

 

Bank Nifty

Bank Nifty has also broken down from the rising channel indicating change in trend. We expect the Bank Nifty to correct towards 46,150 – 44,000 which are the 200 day moving average and the 38.2% Fibonacci retracement level of the rise from 32,300 – 51,100. On the upside, 48,600 – 49,200 shall act as an immediate hurdle.

Views by: Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas

3:47 PM

Comment: Markets expect stability within NDA coalition

The unexpected outcome of the general election sparked a wave of fear selling in the domestic market, reversing the recent substantial rally. Despite this, the market maintains its expectation of stability within the coalition, led by BJP as the major election winner, thereby mitigating substantial downside in the medium-term. This is likely to lead to a major shift in political policy with a focus on social economics, which will have a positive effect on the rural economy. Alongside, the sectors that have topped in the past five years, including power, capital goods, real estate, and industrials, are advised to exercise caution in the near term. Nevertheless, the long-term growth prospects for these sectors remain robust.

(Comment By: Vinod Nair, Head of Research, Geojit Financial Services)

3:44 PM

Nifty PSU Bank, Metal lead sectoral losses

3:42 PM

FMCG stocks, HUL, Britannia top gainers on Nifty50

3:40 PM

Heatmap check

3:39 PM

Closing Bell:: Broader indices fare worse than benchmarks

3:38 PM

Closing Bell: Nifty ends 5.93% lower amid LS poll jitters

3:36 PM

Closing Bell: Sensex ends 4,389 points lower

3:26 PM

ALERT :: Shivraj Singh Chouhan (BJP) wins in Vidisha, Madhya Pradesh

3:20 PM

ALERT :: Omar Abdullah (JKNC) loses in Baramulla, Jammu & Kashmir

3:15 PM

ALERT :: Kangana Ranaut (BJP) wins in Mandi (HP); Mehbooba Mufti (JKPDP) loses in Anantnag (J&K)

3:10 PM

This Nifty 50 stock hit new high in weak market; zoomed 95% from 52-wk low

Shares of Hero MotoCorp (HMCL) hit a new high of Rs 5,349, surging nearly 4 per cent on the National Stock Exchange (NSE) in Tuesday’s intra-day trades on expectation that macro‐economic factors shall aid the industry’s growth. In comparison, Nifty 50 was down 5.8 per cent at 21,920 at 02:28 pm.

In the past one month, the stock price of the two-wheeler (2-W) company has rallied 18 per cent. It has zoomed 95 per cent from its 52-week low of Rs 2,745.05 touched on June 20, 2023. Read more

3:06 PM

ALERT :: Negative surprise on election results to trigger India de-rating, says Emkay Global

>> Current trends indicate that the NDA could end up with ~290-300 seats, comfortably ahead of the 272 majority mark. The bigger surprise is that the BJP, on its own, is set to miss the majority mark by a wide margin, with around 230-240 seats.  

>> It is likely that Narendra Modi will return as PM for a third term. However, he will have to contend with changed circumstances. 

>>  Factor market reforms like those related to land, agriculture, and labor are now off the table, in our view.

>> We expect a market derating in the short term, as the risk on India has gone up. PSUs and Capital goods are the most vulnerable sectors, from which we would stay away for the time being.

>> On the other hand, consumption should come back and we see FMCG and value retailers making a strong return. We are also constructive on Healthcare. 

>> At current levels, we are Neutral and would stay invested but not add to positions. If the Nifty does correct another 10% to below 20,000, we see the market being attractively valued at <18x PER and see an entry opportunity back into Indian equities.

3:03 PM

ALERT :: UBS on India Lok Sabha election results

>> Seems like BJP may not cross 272-mark on its own; coalition govt to return after 10 years in India

 

>> We may see 3 scenario emerging:

 

1) Modi govt with co alliance, but may not function smoothly 

 

2) NDA forms govt but with other PM

 

3) some BJP alliance may swich the sides and INDIA alliance comes; On power, which may result in meaningful policy changes

 

>> Valuations are expensive -  We remain 'underweight' on India.

2:58 PM

BJP leading on all 7 seats in Delhi; eyes to repeat 2019, 2014 verdicts

Delhi Lok Sabha results 2024: The Bharatiya Janata Party (BJP) is leading in all seven Lok Sabha seats as of 1.45 pm in Delhi on Tuesday, according to trends on the Election Commission website.

In North-East Delhi, Manoj Tiwari is leading with a margin of over 100,000 votes. Tiwari has been pitted against Congress’ Kanhaiya Kumar. Read more
 

2:55 PM

Jairam Ramesh says exit polls gave artificial booster to financial markets

2:51 PM

Lok Sabha election results 2024 :: BJP leads in 241 seats, INC 98 as of 2:40 PM

Source: ECI

2:48 PM

Yogendra Yadav posts old tweet on X, predicting less seats for BJP in UP

2:45 PM

ALERT :: PNB Board approves diluting 10% stake Canara HSBC Life Ins by listing it on NSE/BSE, says report

2:41 PM

Sector Watch :: Nifty Oil and Gas index sinks 11%

2:39 PM

Priyanka Gandhi congratulates Kishori Lal as he leads Amethi seat

2:35 PM

"BJP's total seats are going to be 230-232," says Manoj Jha

2:33 PM

Expert Speaks :: Samir Arora on Power stocks

2:29 PM

Lok Sabha election results 2024 :: INC, AAAP lead in Punjab

2:22 PM

Market Check :: Stocks holding ground in today's session

2:19 PM

Lok Sabha election results 2024 :: BJP leads in Karnataka, INC close behind

2:15 PM

Lok Sabha election result 2024 :: INC leads in Manipur

2:12 PM

Lok Sabha election results 2024 :: BJP, INC lead in 2 seats each in J&K

2:07 PM

Market Check :: Over 3,300 stocks decline on BSE; 667 locked in lower circuit at this hour