Stock Market Highlights: Indian equity indices, Sensex and Nifty ended lower on Wednesday dragged by metals and banking stocks amid mixed global cues. Broader markets, smallcap and midcap indices also declined. Barring Nifty FMCG and Nifty IT, all other sectoral indices witnessed selling pressure.
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Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The short term trend of Nifty seems to have shattered by Wednesday's decline. The immediate support of 15,715-15,700 is going to be crucial for the sustainability of the uptrend. A decisive move below this support could confirm trend reversal and also a crucial top formation at 15,901 levels. Any pullback rallies could find resistance at 15,825-15,850 levels.
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
The market remained in a narrow trading range with a negative bias ahead of the Fed’s meeting in the US. Today, we also saw a big drag on the metal index due to specific announcement from China on the increase of supply in commodities. After the outcome from the Fed, we need an opening of the market above the levels of 15,830/52,750, which would push the market towards, 16,000/16,100 (53,300) levels. In case the market opens lower and breaks the level of 15,580/51,850, then the chances of hitting 15,500/15,430 (51,600/51,400) would turn bright. As the major trend of the market is positive, our advice is to add long positions, if the market fell to major supports in the short term.
Ajit Mishra, VP - Research, Religare Broking
Markets lost over half a percent in a volatile trading session as participants were in the profit-taking mood from the beginning. All eyes are on the US Fed rate decision which is scheduled tonight. We expect the Fed to maintain the status quo on rates however commentary on economy and inflation would be actively tracked by investors. We expect volatility to remain high in the indices due to scheduled weekly expiry. In case of a further slide, Nifty would find support around 15,600-15,650 zone on Thursday. On the higher side, the 15,800-15,850 zone would act as a hurdle. Traders should limit naked leveraged positions and wait for further clarity.
Sumeet Bagadia, Executive Director, Choice Broking
Domestic market took cues from the weak global market ahead of the US Fed’s decision. Technically, the index has confirmed a shooting star candlestick pattern on the top which suggests correction in the counter. At present, the Nifty seems to have resistance at around 16,000 levels while immediate support shifted up to 15,650 levels.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty fell ahead of the US Fed meeting as traders brought down their positions ahead of the event. This is also reflected in low volumes and sharply negative advance-decline ratio. The market might be reluctant to push higher ahead of the Fed meeting beyond a point. While economists don't expect US Fed to alter rates or cut bond-buying immediately, any indication of an earlier than expected rollback of stimulus may dampen sentiments. 15,648-15,835 is the band for the near term for the Nifty.
Mohit Nigam, Head, PMS - Hem Securities
Major Indices retreated from a record high on account of profit booking. Asian market declined with investors awaiting a policy decision from the Federal Reserve. Metal stocks are witnessing profit booking from the intra-day high after the news came that China will soon release some base metals from state stockpiles. Immediate support and resistance are intact at 15,600 and 15,850 for Nifty 50.
Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services
The USDINR spot remains in the mid-range ahead of the FOMC announcement. If the FOMC pushes back tapering talk, it will dismiss the uptrend in the spot. Otherwise, any hint over the timing of tapering will continue the dollar rally, pushing the USDINR spot higher towards the crucial resistance of 73.50. Consistent trading above that will push prices towards 73.60-73.75, however, a reversal may bring the spot back to the 72.75-73 zone.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The Nifty managed to close above the support of 15,700 which is a positive sign. If we break this level on a closing basis, the current trend would need to be evaluated again. A risk-reward trade can be considered at these levels where the target would be 15,900-16,000 and a stop could be placed below the closing of 15,700. Until we do not break 15,700 on a closing basis, the current trend remains bullish.
Manish Shah, Founder, www.Niftytriggers.com
Nifty closed in the negative territory. Nifty failed to hold above the support at 15,780-15,800 and it traded below this support. With Nifty trading below this support, the index could see some difficulty in moving higher in the coming days. The candle for the day was a long red candle that closed at the lows of the day. The range of the candle was fairly wide and this can be termed as a bearish candle. MACD has turned over as the signal line has given a sell signal. A minor trendline coming up from the lows of May 2021 is getting violated. What this means is that Nifty could get ready for a drop to 15,600-15,650 over the next couple of days. Tomorrow is the last day of the weekly expiry. The index is likely to stay below 15,800 for the current weekly expiry averages pointing up. We can expect to show a steady bullish undertone towards 16,000 over the next couple of days.
Rupee At Close | The Indian rupee ended flat at 73.32 per dollar amid selling in the domestic equity market. The local currency opened flat at 73.29 per dollar against previous close of 73.31 and traded in the range of 73.26-73.38.
Market At Close | Market breadth favours declines; advance-decline ratio at 1:2
Market At Close | Market closes lower ahead of FOMC outcome; midcaps underperform.
Market At Close | Here are the highlights from today’s trading session
- Market Closes Lower Ahead Of FOMC Outcome; Midcaps Underperform
- Sensex Falls 267 Points To 52,506 & Nifty 102 Points To 15,768
- Nifty Bank Slips 244 Points To 35,004 & Midcap Index 256 Points To 27,109
- 39 Of 50 Nifty Stock Close In The Red; Adani Ports, Hindalco, Tata Steel Top Losers
- Adani Group Stocks Remain Under Pressure; Adani Ports Down 8%, Adani Ent 7%
- Jubilant Food Slips From Highs But Close In The Green On Positive Outlook
- Power Stocks Like Tata Power, NTPC Gain In 2nd Half Of The Session
- Metals Fall On China’s Curb On Overseas Commodity Exposure ; Nifty Metal Down 3%
- FMCG Shares Gain In A Weak Trading Session; Tata Cons, Nestle Top Nifty Gainers
- Fertiliser Shrs Gain On Cabinet Nod For 140% Hike In Subsidy On DAP Fertiliser
- Market Breadth Favours Declines; Advance-Decline Ratio At 1:2
Closing Bell | The Indian benchmark equity indices ended lower on Wednesday dragged by sharp selling in metals and banking stocks. The Sensex fell 271.07 points, or 0.51 percent to 52,501.98, while the Nifty ended 101.70 points, or 0.64 percent lower at 15,767.55. Broader markets also reeled under selling pressure as the Nifty Smallcap100 and Nifty Midcap100 indices fell 0.52 percent and 0.93 percent, respectively.
Among sectors, Nifty Metal fell the most over 2.8 percent, followed by Nifty PSU Bank, Nifty Realty, Nifty Auto and Nifty Pharma indices. Buying was seen in Nifty IT and Nifty FMCG. On the Nifty50 index, Tata Consumer, Nestle India, ONGC, NTPC, and HUL were the top gainers while Adani Ports, Tata Steel, Hindalco Industries, JSW Steel, and PowerGrid Corporation led the losses.
Oil hits new high near $75 on demand rise, falling inventories
Oil extended its run of gains on Wednesday, climbing towards $75 a barrel to its highest since April 2019, supported by a recovery in demand from the pandemic and a drop in US crude inventories. Brent crude was up 29 cents, or 0.4 percent, at $74.28 a barrel, and earlier reached $74.73, the highest since April 2019. US crude gained 32 cents, or 0.4 percent, to $72.44 and hit $72.83, the highest since October 2018.
HDFC Securities on Jubilant FoodWorks
Jubilant’s 4QFY21 was slightly weaker than expected with the company seeing a miss on revenue and margin. Lockdown has again impacted the demand; however, we expect recovery to regain pace from 2QFY22. We cut EPS estimate for FY22/FY23 by 4/1%. We value Jubilant at 55x P/E on Jun-23E (earlier Mar-23) EPS and derive a target price of Rs 2,650. We believe a large part of the recovery is priced in (trading at 70x/59x P/E on FY23/24). Maintain Reduce.
Emkay Wealth Management on Brent Oil
Brent crude oil prices may test higher levels of USD 78-80, and the support may be at USD 68-70 level. But the rise may be, to a certain extent, limited by the strength in the US dollar against other currency majors.
AMFI bi-annual rejig: Adani Gas, Apollo Hospital, 5 others likely to be reclassified as large-caps
The biannual reclassification of large, mid, and small-cap stocks done by the Association of Mutual Funds in India (AMFI) is due in the first week of July. During this, the AMFI will consider the average market cap of the last six months (January-June 2021) from both the exchanges to reclassify stocks into large-cap (1-100 stocks by market cap), mid-cap (101-250 stocks by the market cap), small-cap (251 onwards by market cap). According to Axis Securities, in the upcoming rebalance, a total of 22 stocks are likely to get upgraded (from small-cap to mid-cap and mid-cap to large-cap). Of this, seven mid-cap stocks are likely to be reclassified as large-caps in this review. These include Adani Gas, Apollo Hospitals, Cholamandalam Investment, and Finance Company Limited, NMDC, Honeywell Automation, Bank of Baroda, and Godrej Properties. Read here.
KIMS Hospitals public issue subscribed 18% so far on day 1 of bidding
The initial public offering (IPO) of Krishna Institute of Medical Sciences (KIMS Hospitals) has been subscribed 18 percent so far on June 16, the first day of bidding process. The offer has received bids for 26.13 lakh equity shares against IPO size of 1.44 crore equity shares. The portion set aside for retail investors has subscribed 57 percent, while that of qualified institutional buyers 14 percent. The portion set aside for employees is subscribed 4 percent.
Copper prices see 10-12% decline from all-time high
Copper prices have declined by nearly 5.5 percent in the last three trading sessions. The prices had seen an all-time high of $10,800/tonne, and saw a low below $9,700/tonne yesterday (June 15). So, it is a 10-12 percent decline from the all-time highs. The announcement from China to release state reserves of copper, aluminium, and zinc to end users every month, is also putting pressure on copper prices, which is trading at 7-week lows in the Asian markets. Meanwhile, JPMorgan has raised coal price forecast by nearly 28 percent for FY21, and 23 percent for FY22. Given the fact that it is not environment friendly, there have been no new investments into coal mines, which is supporting the prices. Watch here.
Dodla Dairy IPO: Mgmt says focused on value-added products; aims to hit pre-COVID capacity soon
Integrated milk products company Dodla Dairy's Rs 520 crore initial public offering (IPO) issue is now open for subscription from Wednesday. To understand the prospects of the company post the IPO issue and the outlook for the business going ahead, CNBC-TV18 spoke to the Managing Director of the company, Sunil Reddy Dodla. On capacity utilisation, Dodla said, “Pre-COVID we were doing around 13 lakh litres and once COVID hit we have come to around 11 lakh litres. When COVID was relaxed in this April month we rapidly went back to 13 lakh litres. So our anticipation is once COVID fear goes down we will be able to touch 13 lakh litres immediately.” Read here.
Market Watch: Manas Jaiswal, manasjaiswal.com
- Buy Larsen & Toubro Infotech with a stop loss of Rs 4,120 and a target price of Rs 4,360
- Buy Nestle with a stop loss of Rs 17,750 and a target price of Rs 18,400
Fitch affirms Adani Ports at 'BBB-'; outlook negative
Fitch Ratings has affirmed India-based port operator Adani Ports and Special Economic Zone Limited's (APSEZ) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BBB-'. The outlook is negative. Read here.