Moneycontrol PRO
Upcoming Event:Attend Algo Convention Live, 2 Days & 12+ Speakers at best offer Rs.999/-, exclusive for Moneycontrol Pro subscribers. Register now!

After The Bell: Profit booking hits Nifty, what should investors do on Thursday?

On the sectoral front, buying was seen in IT, energy, capital goods, and healthcare stocks, while selling pressure was visible in utilities, power, finance, and banks.

June 30, 2021 / 04:31 PM IST

The benchmark indices started off on a strong note but gave up gains in the second half of the session amid weak global cues and closed in the red.

The Nifty failed to hold on to 15,800 and closed 26 lower at 15,721. The Sensex, which shed more than 600 points from the intraday high of 53,126, ended 66 points lower at 52,482

European stocks and US index futures fell on June 30 and shares retreated from recent record peaks, as markets once more grew jittery about the pandemic ahead of the half-year-end and ahead of the US jobs data expected later this week, a Reuters report said.

"Though the spread of the delta variant remained a concern in the Asian market, the domestic market took a breather, as the market’s focus on declining domestic cases lifted its mood today,” Vinod Nair, Head of Research at Geojit Financial Services said.

“However, negative sentiments from global markets dropped investor’s risk appetite, forcing the market to close flat,” he said. Global markets are waiting for the US job data for June, which is crucial for the US Fed’s monetary policy decision.

Close

On the sectoral front, buying was seen in IT, energy, capital goods, and healthcare stocks while selling pressure was visible in utilities, power, finance, and banks.

On the broader market front, the BSE midcap index fell 0.03 percent and the smallcap index was up 0.56 percent, outperforming benchmark indices.

India VIX moved up by 0.35 percent from 13 to 13.04 levels. Lower volatility indicates an overall bullish market bias but a small bounce in VIX can give some volatile cues to the market.

IndexPricesChangeChange%
Sensex54,326.391,534.16 +2.91%
Nifty 5016,266.15456.75 +2.89%
Nifty Bank34,276.40960.75 +2.88%
Nifty 50 16,266.15 456.75 (2.89%)
Fri, May 20, 2022
Biggest GainerPricesChangeChange%
Dr Reddys Labs4,249.10319.65 +8.13%
Biggest LoserPricesChangeChange%
Shree Cements22,001.20-215.15 -0.97%
Best SectorPricesChangeChange%
Nifty Metal5706.35230.10 +4.20%
Worst SectorPricesChangeChange%
Nifty IT28789.40437.25 +1.54%

Here’s what experts suggest investors should do on June 30:

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

The Nifty closed near its lowest levels of the day, losing 26 points. It formed a bearish candle on the daily scale and formed lower lows from the third session.

The index has to hold above 15,700 for an up move towards 15,850 and 15,900, while on the downside, support can be seen at 15,600 and 15,500.

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

The index couldn’t get past the range and 15,900 continues to be a major roadblock for the Nifty. If it manages to go past it, the index will head to 16,100. Until then, it will vacillate between 15,400 and 15,900 on the back of lacklustre volumes.

The level of 15,400 is good support for the market and till it is not breached on a closing basis, the macro trend will remain bullish.

S Ranganathan, Head of Research, LKP securities

Markets started on a strong note but gave up gains in the afternoon session on profit booking. Broader markets, however, saw plenty of action across specific themes.

Paper stocks stood out, with the top three players witnessing smart accumulation. Being the last day of the first quarter, the street is bracing for the earnings season.

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

The Nifty attempted a bounce from the 20-day moving average (DMA) at the beginning of the session but couldn’t gather follow-through momentum on the upside.

The index tumbled in the second half of the session. The hourly chart shows that the Nifty has reached the lower end of an upward sloping channel, which is near 15,700.

Also the swing low of 15673 is nearby. Thus the Nifty is trading close to a support zone of 15,700-15,673. It will be crucial to see whether the bulls can defend the support on a closing basis.

The bulls will need to surpass the near-term resistance zone of 15,800-15,840 to revive the short-term uptrend.

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.



Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Kshitij Anand is the Editor Markets at Moneycontrol.
Sections
ISO 27001 - BSI Assurance Mark