Prashanth Tapse, Vice President (Research), Mehta Equities
:
Dalal Street rose sharply in today’s trade shrugging off weak overnight Wall Street cues amid value buying backed by short covering in Reliance Industries and other IT stocks. Nifty bulls’ probably will rip to its 200-DMA 17253 mark. The index's immediate target is seen at 17837. Nifty has immediate support at 16421-16171, while resistance is seen at 16837-17264.
Deepak Jasani, Head of Retail Research, HDFC Securities
:
Nifty snapped a two day fall on June 2 as expected. It opened flat and gradually rose through the day with minimal corrections to end almost at the intra day high. At close, Nifty was up 0.64% or 105.3 points at 16628.
Volumes on the NSE were a bit lower than the recent average. Among sectors, Oil & Gas and IT were the main gainers while Auto and Capital goods were the main losers. Broader markets did well as is clear from the sharply positive advance decline ratio and a gain in the smallcap index.
Nifty has expectedly started to rise post a small correction. 16696 is the next resistance post which 16888 could halt the upmove temporarily. A move below 16506 could result in some minor weakness.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
:
After a subdued start, markets bounced back sharply on the back of renewed optimism as investors lapped up shares of the recently beaten down IT and oil & gas stocks. In fact, Indian shares outperformed other Asian peers, which mostly ended in the red. Technically, after a muted opening, the Nifty took support near 16450 and reversed the trend. A promising reversal formation on intraday charts and a long bullish candle on daily charts is indicating further uptrend from the current levels.
For day traders, 16550 would act as a trend decider level, above which the Nifty could rally till 16720. In case of any further upside, the index could rally up to 16800. On the flip side, below 16550, uptrend would be vulnerable and could falter up to 16450.
Vinod Nair, Head of Research at Geojit Financial Services
:
The bounce in the market is showing signs of getting extended further supported by a mid and small-cap. High-frequency data like GST collection and PMI have shown a good start to FY23. Crude prices have declined providing an edge to the performance of the Indian market. However, a lot will depend on central bank’s policy in India and US, which will be announced in the next two weeks.
Rupak De, Senior Technical Analyst at LKP Securities
:
Nifty remained volatile with a positive bias throughout the session. On the daily chart, the benchmark index Nifty has formed an engulfing kind of pattern, suggesting bullishness. Daily RSI is in bullish crossover and rising. On the higher end, the index has resistance at 16700; above 16700, the Nifty can move towards 17000. The trend is likely to remain positive as long as it sustains above 16400.
Rupee at close
Rupee ends at 77.61 per US dollar against June 1 close of 77.52 per US dollar
Market at Close; Benchmark indices ended the session on June 2 on a positive note with Sensex gaining 436.94 points or 0.79% at 55818.11, and the Nifty adding 105.20 points or 0.64% at 16628. Reliance surged over 3% to close at 1-month high, lifted Nifty by 68 points. Financials kept market gains in check with HDFC, HDFC Bank and ICICI Bank being the main losers. About 1919 shares have advanced, 1301 shares declined, and 134 shares are unchanged. Among the sectors, the oil & gas index added over 2 percent while selling was seen in auto and capital goods names. The midcap index ended flat while the smallcap index closed with gains of half a percent.
Auto sector was the biggest loser of the day, down 0.61 percent at 3.20 pm
Source:BSE
Market at 3.00 PM
Benchmark indices off day's high, Sensex trading higher by around 350 points, Nifty above 16,600
The Sensex was up 339.88 points or 0.61% at 55,721 and the Nifty was up 89.70 points or 0.54% at 16612.45. About 1885 shares have advanced, 1384 shares declined, and 132 shares are unchanged.
Source: BSE
Nifty IT lead the pack of gainers with a gain of 1.91 percent
Source: NSE
European Markets Updates
Tapan Patel, Senior Analyst (Commodities), HDFC Securities
:
Crude oil prices traded lower with benchmark NYMEX WTI crude oil fell by more than 2% to $112.30 per barrel. Crude oil prices were down on Thursday morning in Asia, falling by around $3 a barrel in early Asian trading. Investors cashed in on a recent rally with OPEC and allies meeting later in the day set to pave the way for expected output increases. The US crude oil supply from the American Petroleum Institute showed a draw of 1.181 million barrels for the week ended May 26.
We expect crude oil prices to trade sideways to down with resistance at $116 per barrel with support at $110 per barrel. MCX Crude oil June contract has important support at Rs 8590 and resistance at Rs 9010 per barrel.
Market update at 2 PM: Sensex is up 380.74 points or 0.69% at 55761.91, and the Nifty gained 86.50 points or 0.52% at 16609.30.
Chandan Taparia, Vice President, Equity Derivatives and Technical, Broking & Distribution, Motilal Oswal Financial Services Ltd.
Mid-Market update - Nifty is expected to remain in a range while Bank nifty may outperform. Traders are advised to apply buy on decline strategy at the support zones. At current juncture, we are advising to be with selective stocks and one can look for buying opportunity in stocks like Reliance, Bajaj Finance, Voltas and HAL.
Expect RBI to high the repo rate by 35-40 bps in June, Pankaj Pathak, Fund Manager-Fixed Income, Quantum AMC
We expect that the RBI will hike the Repo rate by another 35-40 basis points in the June meeting. However, we will not be surprised if they prefer to go slow on rate hikes given the government is also responding to the inflation risks. The recent announcement on fuel tax cuts and reduction of import duties on edible oils will provide some comfort to the RBI.RBI’s surprise hike in CRR rate at the start of the month has fuelled an expectation of a further hike in CRR rate in the June policy. However, surplus liquidity in the banking system has fallen sharply in the last three weeks. Currently, the net excess liquidity parked under the RBI’s LAF window is close to Rs. 3 trillion. We believe, the RBI will be comfortable with this level of liquidity at this juncture. So, it may keep the CRR rate unchanged.The bond market is already positioned for frontloaded rate hikes. The broader market expectation is that the RBI will hike by around 40-50 basis points in the June meeting. Any smaller rate hike will be a positive surprise and short term bond yields may soften marginally.
Talks of windfall tax on Oil companies speculative, won't comment. Taxation is Finance Ministry’s prerogative: Oil Minister
Market update at 1 PM: Sensex is up 285.36 points or 0.52% at 55666.53, and the Nifty added 62.70 points or 0.38% at 16585.50.
Brightcom Group was quoting at Rs 58.00, down Rs 3.05, or 5.00 percent. It has touched an intraday high of Rs 59.30 and an intraday low of Rs 58.00. There were pending sell orders of 262,260 shares, with no buyers available.
Market update at 12 PM: Sensex is up 172.68 points or 0.31% at 55553.85, and the Nifty added 23.10 points or 0.14% at 16545.90
Saudi Arabia to raise oil production if Russian output falls under sanctions
Saudi Arabia is prepared to raise its oil production if Russia's output falls substantially because of the western sanctions imposed on it, the Financial Times reported on Wednesday, citing sources. Discussions had been held about an immediate increase in production from Saudi Arabia and the United Arab Emirates, which could be announced at Thursday's OPEC+ meeting, according to the report, citing a diplomatic source.
Saudi Arabia-based family-owned, diversified global investor and operator Abdul Latif Jameel has committed to invest up to $220-million (Rs 1,700-crore) in Greaves Cotton’s e-mobility arm — Greaves Electric Mobility. As part of the deal, Jameel will initially pump in $150-million (Rs 1,160 crores] for a 35.8 per cent stake in the company, making it the second-largest shareholder in the firm, a statement said.
Joseph Anantharaju, Co-Founder & Executive Vice Chairman, Happiest Minds
Joseph Anantharaju, Co-Founder & Executive Vice Chairman of Happiest Minds said in an interview with CNBC TV18 that the company has not seen a drop-off in demand nor is there any request from customers for a price reduction. The discussions regarding price hikes were initiated in Q2FY22 and implemented during last FY. Its customer include start-ups which are well funded and have sustainable products. The start-ups with revenues below $50 million constitute 8 percent of company's revenue. The company deos not have exposure to any loss making start-up and the company is focussing on maintaining capital return ratios. He further added that the company will need to make acquisitions to achieve its aspiration of achieving $1 billion revenue.
Market update at 11 AM: Sensex is up 46.15 points or 0.08% at 55427.32, and the Nifty shed 5.30 points or 0.03% at 16517.50.
Arun Agarwal - Deputy Vice President, Kotak Securities on the auto sector
:
In the month of May 2022, most auto manufacturers reported yoy and qoq increase in their wholesale dispatches. On a YoY basis, growth was high due to low base (May 2021 volume were impacted due to Covid related disruptions). For the passenger vehicle segment, strong demand was partly offset by supply-chain related issues. Domestic two wheeler industry volumes increased over April 2022 benefiting from wedding season. Commercial vehicle segment remained on a strong footing and we expect the medium & heavy commercial vehicle segment recovery to continue. Tractor segment performance was strong, led by better price realizations for crops. Timely arrival of monsoon coupled with normal monsoon forecast augurs well for tractor demand.
Elara Capital's Jay Kale on sales numbers of auto firms in May
:
Softness in tractor sales month on month due to wheat export ban. Tractor numbers still strong on an absolute basis. Small uptick in two-wheeler sales due to the marriage season. Overall growth estimate for 12% in FY23 remains intact.
Market update at 10 AM: Sensex is up 62.89 points or 0.11% at 55444.06, and the Nifty added 2.30 points or 0.01% at 16525.10
Sameet Chavan, Chief Analyst - Technical and Derivatives, Angel One
:
Despite SGX indicating a sluggish start, our markets opened marginally in the green around 16600. This was followed by some consolidation in the first half; but as we stepped into the latter one, some tentativeness was visible across the broader market. As a result, the Nifty sneaked below 16500 and even went on to slide slightly below 16450 during the penultimate hour. Fortunately, the banking space came to the rescue and lifted the market to eventually reclaim the 16500 on a closing basis.
Since the last couple of sessions, the benchmark index has been struggling around 16700, and yesterday it did not even reach there. After marking a high of 16649.20, the Nifty once again felt some heat and in the process, corrected in the vicinity of 16500 – 16400. Since this support zone holds the key as it coincides with the recent breakout point as well as the’20-day EMA’, some buying was visible in the last 30 minutes of trade. The global uncertainty is still looming over and hence, we are not seeing convincing moves after reaching the key resistance levels of 16700. If there is no aberration on the global front, we continue to remain sanguine as long as 16400 – 16370 is defended successfully. Until then one should use these declines to go long. On the upside, the resistance remains at 16600 – 16700; but it’s a matter of time, we would see Nifty surpassing these levels and then heading towards 16850 – 16950 in coming sessions.
The coming session is likely to be the exciting one and it would be interesting to see how things pan out on the global as well as domestic front. We remain hopeful and expect the stock-specific action to continue in the forthcoming session.
Yes Bank hikes lending rates across tenures by 15-25 bps
Rupee at open
Rupee opens at 77.60 per US dollar against June 1 close of 77.52 per US dollar
Market at Open: Sensex is down 171.04 points or 0.31% at 55210.13, and the Nifty shed 58.90 points or 0.36% at 16463.90.
Stocks to Watch Today | Vedanta, Eicher Motors, Mold-Tek Packaging and others in news today
Deepak Jasani, Head of Retail Research, HDFC Securities
:
US stocks seesawed on Wednesday to kick off June, ending the first trading session of June in negative territory as investors weighed the outlook for the economy, inflation and the Federal Reserve’s interest rate path. Investors bet that the latest economic data would do nothing to push the Federal Reserve off track from its aggressive interest rate hiking cycle aimed at taming run-away inflation.
Stocks in Asia fell on Thursday as central bankers amplify hawkish messages in their quest to rein in inflation and JPMorgan Chase & Co.’s Jamie Dimon sounded alarm bells on the economy. Nifty closed lower for the second consecutive session on June 1. At close Nifty was down 0.23% or 37.9 points at 16546.7. Nifty has corrected the earlier upmove gradually and could see the next leg up soon after some more weakness. 16414 is an important support.
Bata India's promoter sells company shares worth Rs 613 crore
BATA B V, the promoter of Bata India, on Wednesday divested 2.56 per cent stake of the footwear company for nearly Rs 613 crore through open market transactions. The shares were picked by a clutch of domestic mutual funds (MFs), foreign investors and an insurance company.
The entities that purchased stake are Tata MF, Mirae Asset MF, HDFC MF, Axis MF, Aditya Birla Sunlife MF, Kotak MF, HDFC Standard Life Insurance Co Ltd, Ghisallo Master Fund LP, Integrated Core Strategies (ASIA) Pte Ltd, Segantii India Mauritius, Societe Generale and Copthall Mauritius Investment Ltd, block deal data available with the BSE showed.
According to the data, the promoter sold a total of 32.95 lakh shares, amounting to 2.56 percent stake of the company. The shares were offloaded on an average price of Rs 1,860 apiece, aggregating the transaction size to Rs 612.87 crore.
Key factors to watch out for before trade on June 2
- Oil a key factor adding to volatility, eye on OPEC+
- Manufacturing PMI, GST, auto sales show economic recovery
- CPI and rate hike fears, FII selling weigh on Sensex
- Jamie Dimon, Chairman and Chief Executive of JPMorgan Chase & Co : ‘Brace Yourself’ for economic hurricane
US 10-year Treasury yield spikes to two-week high
A selloff in the US Treasury market resumed on Wednesday, pushing the 10-year bond yield to a two-week high back above the key 3 percent level. Analysts said expectations for higher interest rates continued to drive US bond yields higher, overshadowing any fallout from the US exit from the Iran nuclear deal for now.
The US 10-year Treasury yield rose to as high as 3.01 percent in early European trade and was last up 4 basis points on the day. Two-year Treasury yields climbed to 2.53 percent, their highest in almost a decade.
Asian Markets Updates
Oil prices
Oil prices fell by around $3 a barrel in early Asian trade on Thursday as investors cashed in on a recent rally with a key producers meeting later in the day set to pave the way for expected output increases. Brent crude was down $2.76, or 2.4%, at $113.53 a barrel at 0024 GMT, having risen 0.6% the previous day. U.S. West Texas Intermediate (WTI) crude dropped $2.89, or 2.9%, to $112.37 a barrel, after a 0.5% rise on Wednesday.
Jamie Dimon says brace for US economic 'hurricane' due to inflation
Jamie Dimon, Chairman and Chief Executive of JPMorgan Chase & Co described the challenges facing the U.S. economy akin to an "hurricane" down the road and urged the Federal Reserve to take forceful measures to avoid tipping the world's biggest economy into a recession.
Dimon's comments come a day after President Joe Biden met with Federal Reserve Chair Jerome Powell to discuss inflation, which is hovering at 40-year highs.
"It's a hurricane," Dimon told a banking conference, adding that the current situation is unprecedented. "Right now, it's kind of sunny, things are doing fine. Everyone thinks the Fed can handle this. That hurricane is right out there down the road coming our way. We just don't know if it's a minor one or Superstorm Sandy," he added.
SGX Nifty
: Trends on SGX Nifty indicate a negative opening for the broader index in India with a loss of 75 points. The Nifty futures were trading around 16,432 levels on the Singaporean exchange.
US Markets
Wall Street's three major indexes closed lower on Wednesday as investors bet that the latest economic data would do nothing to push the Federal Reserve off track from its aggressive interest rate hiking cycle aimed at taming run-away inflation. The Dow Jones Industrial Average fell 176.89 points, or 0.54%, to 32,813.23, the S&P 500 lost 30.92 points, or 0.75%, to 4,101.23 and the Nasdaq Composite dropped 86.93 points, or 0.72%, to 11,994.46.
