Closing Bell: Nifty ends above 10,000, Sensex up 700 pts; Coal India gains 6%

On a daily chart, Nifty has formed Bullish Marabozu candlestick pattern which suggest buyers are quite active and in upcoming days we can see northward rally. As index managed to close above 21&50 Hourly Moving Averages which further points out strength in the index. At present level Index is having support at 9900 level with resistance at 10170 levels.

Saudi Arabia’s Public Investment Fund will invest Rs 11,367 crore in Jio Platforms. This investment values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore.

PIF’s investment will translate into a 2.32% equity stake in Jio Platforms on a fully diluted basis.

With this investment, Jio Platforms has raised Rs 115,693.95 crore from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG and L Catterton, since April 2020.

We expect the Nifty index to carry this momentum and inch towards 10,250 levels ahead. Meanwhile, the news related to the stand-off with China and cues from the global market will remain on participants' radar. Since all the sectors are contributing to the move, traders should maintain their focus on the stock selection.

Technically, the Nifty has closed above 10046 and now seems headed for 10149-10178. On falls, 9943-10046 can provide support.

Markets were successful in going past the resistance level of 10050. This is good news - we are back in an uptrend and should target 10300 as the next level of resistance.

In Spite of negative global cues, Indian indices ended the day positive with steady gains. With the Supreme court AGR ruling providing a respite to the exposed banks, the relief was visible in the banking stocks especially those which had exposure to the telecom companies.

The Banking index contributed the most to the positivity and almost all components of the index ended the day positive. The current geopolitical situation and associated comments also gave some support to sectoral movements. Caution is advised.

A spirited rally by the two Bajaj Twins in the BFSI segment helped the Dalal Street close comfortably above the mark today. The day also witnessed strong investor appetite for Defence stocks in the wake of the recent Indo-China tension across the border.

Indian rupee has weakened to a three week low amid jitters about the resurgence of new coronavirus infections around the world, which are dampening hopes of a quick recovery from the economic fallout of COVID-19. Further undermining sentiments for the currency is the uncertainty with regards to the current border stand-off between India and China.

Another catalyst for the depreciation in rupee is the retreat in dollar index from three month lows. On the contrary, the local unit is still underpinned by persistent fund inflows due to developments with regards to reopening of the economy.

Going forward, only a breach of 76.60 mark would steer it towards new record lows in coming days, else we expect the domestic currency to hold steady.

Department of Telecommunications, decision to withdraw 96 percent of the Rs 4 lakh crore demand for AGR related dues raised against non-telecom PSUs is a very positive outcome. PSU Companies that had to bear the brunt can breathe a sigh of relief on this news. Many of the PSU companies that have been served the AGR demand have witnessed a severe cut in their market cap despite good fundamentals.

On the Private Telecom operators’ front it seems that it’s just a matter of time when the verdict is pronounced – the major observation of the bench being that during the ongoing COVID-19 pandemic, telecom is the sector which is making money. While the telcos would definitely try to maintain a request of 20 years – we believe it would be definitely a shorter period that would be allowed.

: Benchmark indices rallied 2 percent on June 18 with Nifty closed above 10,000 mark supported by the bank and metal stocks.

At close, the Sensex was up 700.13 points or 2.09% at 34208.05, and the Nifty was up 210.55 points or 2.13% at 10091.70. About 1867 shares have advanced, 706 shares declined, and 133 shares are unchanged.

Bajaj Finserv, Coal India, Zee Entertainment, Bajaj Finance and Vedanta were among major gainers on the Nifty, while losers were Asian Paints, HUL, TCS, Bajaj Auto and Bharti Airtel.

On the sectoral front, the Nifty Bank rose 3.7 percent, Metal Index added 3 percent and Nifty Energy index gained 2 percent. BSE Midcap and Smallcap indices rose 1 percent each.

The launching of the auction of 41 coal mines for commercial mining by PM Modi is important from different perspectives. This is a major step in making India self-reliant in energy sector. It will unlock resources of a nation with the world's fourth largest reserves. It will boost domestic coal output and slash imports. Apart from attracting huge capital investments, it could result in these mines contributing ~15% of projected total coal output in FY26.

One hopes that the current global situation does not hamper sufficient participation in these auctions, the State Govts remain on the same page as that of the Centre as far as promoting this is concerned and the rising popularity of renewable power does not impede on attractiveness of these blocks.

The company posted YoY loss of Rs 3.4 crore versus Rs 12.4 crore of profit and revenue was down 33% at Rs 119.8 crore versus Rs 178.7 crore, reported CNBC-TV18.

Move above 20,750 may lead to short-covering bounce in Bank Nifty

In the June series, so far, both FIIs and DIIs have remained net buyers in the cash-market segment to the tune of Rs 8,731 crore and Rs 1,373 crore, respectively.... Read More