Sensex, Nifty post record closing highs on weekly expiry, ahead of RBI MPC on Friday; Nifty eyes 16,000

Indian benchmark equity indices once again ended at record closing high on June 3. Volumes on the NSE were in line with recent averages. Image: Reuters

BSE Sensex and Nifty 50 settled at fresh closing peaks on Thursday, on the back of positive Asian cues. BSE Sensex surged 383 points or 0.74 per cent to end at 52,232, while the broader Nifty 50 index jumped 115 points to end at 15,690. Broader markets too participated in today’s rally. BSE MidCap index finished at 22,370.45, up 230 points or 1.04 per cent DUring intraday, it hit a new record high of 22,394.62. Similarly, S&P BSE SmallCap index jumped 1.04 per cent or 250 points to settle at 24,075. It hit an all-time high of 24,138.48 during intraday. India VIX, the volatility index, cooled off 8.51 per cent to finish at 15.75 level. Market breadth remained positive as 2,188 stocks advanced while 986 declined.

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Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

The Nifty has closed closer to 15700 and should now be headed to 15900-16000 as the next potential target. There are multiple levels which are supporting the index during intra day falls. Today when the index slipped a little, it took good support around 15600 and bounced from there. 15500, 15400 and 15300 are the other levels of support, the most crucial being 15300. As long as the markets can hold on to that level, the overall trend remains bullish and traders can accumulate long positions around these support zones.

Jay Thakkar – VP and Head of Equity Research at Marwadi Shares and Finance

Nifty has closed well on the first weekly expiry of the June series. It closed well in the positive territory however it was not able to surpass 15700 levels wherein there was the highest open interest on the calls front. On the lower side, the immediate support is pegged at 15600 levels, hence a short term range is 15600-15700. A close break above 15700 on Nifty will take it to 15800/15850 levels whereas a break of 15600 levels will get it into a consolidation. The Banknifty too closed well in the positive territory i.e. well above 35500 levels and above these levels, it is expected to inch towards 36000 levels. On the flip side till 35500 levels are held the short term bias will be positive however if 35500 is broken on a closing basis then it may correct till 35000 levels. Tomorrow being RBI Monetary policy, so the banknifty will play a crucial role in overall market sentiment. Apart from Nifty Bank, Nifty FMCG and Nifty Metal are likely to be in focus in tomorrow’s trading session. Nifty Metal seems to have reversed after some correction seen recently and Nifty FMCG is already in an up move which is likely to continue.

Deepak Jasani, Head of Retail Research, HDFC Securities

Indian benchmark equity indices once again ended at record closing high on June 3. Volumes on the NSE were in line with recent averages. World stocks clung close to record highs on Thursday as investors weighed inflation concerns ahead of key monthly U.S. jobs report scheduled for release on Friday, while oil prices rose for a third straight session. Nifty once again closed at a fresh record high on June 3 after opening with a gap-up. Sectoral rotation is back in focus. On Friday, week-end considerations could result in some profit taking at these or higher levels. Outcome of RBI’s credit policy meet can impact Banking and other sectors though expectations are subdued therefrom. Advance decline ratio continues to be very positive. 15771-15598 could be the band for the Nifty in the near term.

S Ranganathan, Head of Research at LKP Securities

Markets remained firmly in the grip of Bulls ahead of the RBI Policy as expectations of vaccinations being ramped up coupled with capex programs is likely to improve credit growth. Even as the street is expecting the RBI to continue with its accommodative stance while keeping a watchful eye on Inflation led by rising commodity prices, we saw heightened activity in big names involved in building Infrastructure and in select high quality Midcaps.

Vinod Nair, Head of Research at Geojit Financial Services

Domestic markets witnessed a range bound rally with strong buying interest seen in realty and consumer durables with small and mid cap stocks outperforming. The global market was cautious with the US and European markets trading in red ahead of the release of key economic US data. In the wake of increasing inflationary pressure, the domestic market is awaiting tomorrow’s RBI MPC announcement which is expected to maintain its accommodative stance.