After The Bell: Bulls take charge, here’s what should investors do on Friday

The Nifty has to hold above 15,700 for an up move towards 15,900 and 16,000, while on the downside, support exists at 15,650 and 15,550 zones, say experts.

June 10, 2021 / 05:20 PM IST

Indian shares snapped their two-day losing streak to close higher on June 10, pushing the Nifty50 above the psychologically important 15,700-mark.

The Nifty50 closed with gains of 102 points at 15,737, while the S&P BSE Sensex rose 358 points to 52,300. The broader markets outdid the benchmarks. The BSE midcap index rose 1.2 percent and the smallcap 1.7 percent.

Sectorally, the rally was seen in realty, healthcare, finance, banks, and telecom space, while mild profit-booking was seen in the auto sector.

Tracking positive global cues, Indian markets bounced back from the lows on a faster vaccination drive and following a government report that the economic impact of the second COVID-19 wave may not stretch beyond the first quarter of FY22.

Close

The economic impact of the second wave is likely to be restricted to the first quarter of 2022, the Department of Economic Affairs (DEA) said in its monthly report.

As per the DEA, rapid vaccination of India's population and the frontloading of the fiscal measures were the key to invigorating investment and consumption. Capital expenditure had risen to 66.5 percent YoY in April 2021, it said.

"Ahead of US inflation data and European Central Bank (ECB) policy meeting outcome, Indian equities reflected its Asian counterparts to trade on a positive note,” Vinod Nair, Head of Research at Geojit Financial Services said. Gains in the market were broad-based with all major sectors except auto ending higher, he said.

IndexPricesChangeChange%
Sensex52,636.08330.00 +0.63%
Nifty 5015,767.7580.80 +0.52%
Nifty Bank34,791.60217.60 +0.63%
Nifty 50 15,767.75 80.80 (0.52%)
Thu, Jun 24, 2021
Biggest GainerPricesChangeChange%
Infosys1,549.6546.50 +3.09%
Biggest LoserPricesChangeChange%
Adani Ports703.65-15.05 -2.09%
Best SectorPricesChangeChange%
Nifty IT28923.60665.10 +2.35%
Worst SectorPricesChangeChange%
Nifty Energy20058.10-295.45 -1.45%

Here’s what experts suggest investors should do on June 11:

Expert: Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services

The Nifty formed a small-bodied bullish candle and an inside bar on the daily scale as it moved inside the trading range of the last session.

It has to hold above 15,700 to witness an up move towards 15,900 and 16,000, while on the downside, support exists at 15,650 and 15,550.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas

After the sharp fall on the previous day, the Nifty bounced back on June 10. In terms of the Fibonacci retracement, it retraced 78.6 percent of the decline, which acted as a barrier for the day.

Structurally, the move is showing characteristics of a pullback. This means that it is likely to be a part of the consolidation and is unlikely to be the start of a fresh move up.

Unless the swing high of 15,800 is surpassed, the index is likely to form the next leg down, which will bring the Nifty to the swing low of 15,566. Overall, the short-term consolidation is expected to continue.

Rohit Singre, Senior Technical Analyst, LKP Securities

We may see some consolidation going forward in the 15,600-15,800 range, which is the immediate support.

A close below 15,600 can lead to selling pressure, while a close above 15,800, will restore the momentum. Above 15,800, we may see a quick moment towards the 16,000- mark, where one can lock the gains.

Ajit Mishra, VP-Research, Religare Broking Ltd

The market made a smart comeback to gain more than half a percent. Markets are keenly eyeing the domestic developments such as unlocking by states and progress of vaccination programme for cues.

Going ahead, we feel the update on the monsoon will also be closely watched.  Major global indices are seeing consolidation, which may continue to trigger volatility in Indian markets too.

Amid all this, we reiterate our bullish view and suggest using dips or further consolidation to accumulate quality stocks.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Kshitij Anand is the Editor Markets at Moneycontrol.

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