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After The Bell: Nifty goes past 15,700; what should investors do on Friday?

The Nifty has to hold above 15,600 for an upmove towards new highs of 15,800 and 16,000, while on the downside, support exists at 15,550 and 15,431, say experts.

June 03, 2021 / 05:36 PM IST

A smart rally on D-Street pushed the benchmark indices and the BSE midcap index to close at record highs on June 3 despite mixed trends in global markets. The Nifty50 also went past 15,700 for the first time, hitting 15,705.10 during intraday trade.

At close, the Sensex was 382 points higher to 52,232, while the Nifty was up 114 points at 15,690.

Sectorally, a rally was seen in consumer durables, realty, capital goods as well as industrials. Broader markets outperformed the benchmarks, as the BSE midcap and smallcap indexes closed with gains of 1.04 percent each.

"Domestic markets witnessed a range-bound rally with strong buying interest seen in realty and consumer durables, with small and midcap stocks outperforming,” Vinod Nair, Head of Research at Geojit Financial Services said.

Close

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,” he said.

Here’s what experts think that investors should do on June 4:

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

IndexPricesChangeChange%
Sensex60,967.05145.43 +0.24%
Nifty 5018,125.4010.50 +0.06%
Nifty Bank41,192.40868.75 +2.15%
Nifty 50 18,125.40 10.50 (0.06%)
Mon, Oct 25, 2021
Biggest GainerPricesChangeChange%
ICICI Bank841.7082.40 +10.85%
Biggest LoserPricesChangeChange%
BPCL431.70-15.55 -3.48%
Best SectorPricesChangeChange%
Nifty Bank41192.40868.75 +2.15%
Worst SectorPricesChangeChange%
Nifty Auto11228.20-205.80 -1.80%

Technically, the Nifty formed a bullish candle with a lower shadow on the daily scale, indicating that every small decline was being bought in the market.

The index has to hold above 15,600 for an upmove towards a fresh lifetime high of 15,800 and 16,000 zone, while on the downside, support exists at 15,550 and 15,431 zone.

Rohit Singre, Senior Technical Analyst, LKP Securities

The index saw one more positive breakout as the Nifty closed the day nearly a percent higher. The support has shifted upwards towards the 15650-15600 zone and as long as it trades above it, we may see the momentum continue and take the index towards the next hurdle zone of 15,800.

Every dip is a buying opportunity around said levels. On an immediate basis, 15,450 will be the trend reversal level. A close below it can trigger profit-taking.

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

The Nifty opened with a gap on the upside, and crossed the swing high of 15,660. After a brief consolidation in the first half, the bulls pushed the index higher in the second half.

As the Nifty has achieved our short-term target of 15,700, we have raised it to 16000, which we have been maintaining as our medium-term target.We have raised the medium-term target to 16,800.

On the downside, the gap area of 15,611-15,597, which got created on the daily chart on June 3, will act as an immediate support.

S Ranganathan, Head, Research, LKP Securities

The market remained firmly in the grip of bulls ahead of the RBI policy as expectations of vaccinations being ramped up coupled with capex programmes 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.

Ajit Mishra, VP-Research, Religare Broking Ltd

Markets resumed the uptrend after a minor pause and gained over half a percent, tracking firm global cues.

All eyes will be on the RBI monetary policy on June 4, with the majority expecting status quo on key rates.

However, the commentary on growth and inflation will be closely watched. We may see volatile swings during the day, so traders should plan accordingly.

Disclaimer: The views and investment tips expressed by 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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