Markets in green: Broader markets outperform; Nifty Metal & Nifty PSU Bank jump over 2.5 per cent
Market Update at 1:00 PM: Indian markets gained back their lost sheen during today's afternoon session and were seen trading near the day’s high, aided by a rally in the metal & banking stocks.
Nifty Metal & Nifty PSU Bank surged over 2.5 per cent each while Nifty Bank was seen outperforming Nifty as it advanced over a per cent.
Meanwhile, the broader markets continue to remain buoyant as Nifty Midcap 100 & Smallcap 100 added 1.09 per cent and 0.57 per cent, respectively.
Market Update at 10:53 AM:After a scintillating close on the eve of June series expiry, Indian markets began July series on a buoyant note. However, it failed to capitalise on its early gains and as a result, trimmed the entire gains and slipped back to the neutral line.
Nifty and Sensex were seen trading with modest losses of 0.07 per cent and 0.14 per cent, respectively. The broader markets were buoyant and thus, they were seen outperforming the frontline indices with Nifty Midcap 100 and Smallcap 100 surging 0.89 per cent and 0.50 per cent, respectively. The market breadth is in the favour of advances. Interestingly, India VIX has cooled off more than 4 per cent and slipped back below the 15 mark.
Among the sectoral indices, all the indices were seen trading in green, barring Nifty Energy and Nifty FMCG.
Among the stock-specific action, Ashok Leyland was seen buzzing on the bourses after it reported its numbers for the quarter ended March 31, 2021. The company reported a net profit of Rs 241 crore for the quarter ended March 31, 2021, as against a net loss of Rs 57 crore in the year-ago period. The stock is the top gainer in the F&O segment and added more than 15 per cent in the open interest.
Nifty opened the session with a gap-up and slowly & steadily, built upon its early gains to hit the day’s high of 15,821. At the end of the session, it settled at 15,790, up by 0.66 per cent. The rally was largely supported by Nifty IT, followed by Nifty Private Bank. On the other hand, the index heavyweight i.e. Reliance Industries, which held its 44th AGM on Thursday, plunged about 2.4 per cent.
On a series-on-series basis, Nifty rose by 2.9 per cent while Bank Nifty underperformed a bit as it registered a loss of 0.87 per cent. The top five gainers for June series were PEL, Gujarat Gas, Indiabulls Housing Finance & GMR Infra. On the flip side, the top five losers for June series were BHEL, Aurobindo Pharma, Page Industries, National Aluminium, and Ashok Leyland.
Nifty saw a rollover of about 84 per cent as against its three-month average of 75 per cent. Technically, the index formed an inside bar pattern on the daily chart as it traded within the range of its previous session. Even on the weekly timeframe, the index has traded within the last week's range. Nifty needs to move above 15,863 for a bullish continuation move. In any case, if it fails to move on the upside and declines below the level of 15,673, it would be a bearish confirmation for an inside bar. Post the breakdown of the 15,673 level, the next major support will be placed at the 15,450 mark. Besides, on a weekly basis, a close below 15,450, will turn out to be a negative sign for the index.
Overall, the consolidation would continue within the broad range of 15,450-15,900 and hence, traders are advised not to take aggressive positions.