Closing Bell: Nifty ends below 15,850, Sensex falls 189 pts; FM announces relief measures

Taking Stock: Market Fails To Hold Record High With Nifty Below 15,850. PSU Banks Stand Out

More than 400 stocks, including Tata Consumer Products, Nelco, Laurus Labs and Shree Renuka Sugars, hit a fresh 52-week high on the BSE

The underlying trend of Nifty remains positive. The market is still showing range bound action near the crucial hurdle of 15900. A sustainable move above 15900-15925 could only open next round of upside in the market towards 16200-16300 levels. Any decline from here could find support around 15760 and next 15650 levels for this week.

Markets settled marginally lower as participants preferred to book profit at higher levels. The benchmark opened on a firm note following supportive global cues however profit-taking in the index majors erased all the gains and pushed the index lower. Eventually, the Nifty index ended lower by 0.2% at 15,815 levels. Amongst the sector, a mixed trend was witnessed wherein metal, healthcare and FMCG ended with gains whereas IT, capital goods and oil & gas ended with losses. The broader markets outperformed wherein both midcap and small cap ended higher by 0.6% and 0.5% respectively.

Markets may react to the announcements made by the Finance Minister(FM) in early trades on Tuesday which were primarily focused on boosting the economic recovery and supporting the vulnerable sectors and individuals impacted due to COVID. We reiterate our bullish view and suggest continuing with a stock-specific trading approach. Among the sectors, banking has the potential to trigger the next up move.

After breaching all-time high of 15900, the market witnessed some lackluster movement and an attempt to hold the support level above the Nifty 50 Index level of 15800. The market suggests, trading above 15800 is positive from a short-term perspective. Sustaining above 15800 levels, the market to gain momentum, leading to an upside projection till 16100-16200 level. The momentum indicators like RSI, MACD to further strengthen in favor of a positive outlook.

Indian rupeeendedflat at 74.19 per dollar, amidsellingsawin the domestic equity market.It opened marginally lower at 74.25 per dollar against Friday's close of 74.18 and trade intherange of 74.17-74.27.

Benchmark indices ended lower on June 28 with Nifty below 15,850 amid Finance Minister Nirmala Sitharaman announced another stimulus package.

At close, the Sensex was down 189.45 points or 0.36% at 52735.59, and the Nifty was down 45.70 points or 0.29% at 15814.70. About 1826 shares have advanced, 1420 shares declined, and 147 shares are unchanged.

Divis Labs, Dr Reddys Labs, Hindalco, Tata Steel and Tech Mahindra were among major gainers on the Nifty. Top losers included HDFC Life, Titan Company, TCS, Shree Cements and Coal India.

Among sectors, Nifty PSU Bank, pharma and metal indices gained 1-2 percent, while IT, energy and infra indices witnessed selling pressure. BSE Midcap and Smallcap indices up 0.4 percent each.

| Announces Rs 1.1 lakh crore loan guarantee scheme for COVID-affected sectors and additional Rs 1.5 lakh crore announced under the Emergency Credit Line Guarantee Scheme (ECLGS).

Gold prices stuck up in the tight range of $1771-1796 from the last five trading sessions. A mixed instance on Fed policy is keeping prices in a tight range.

Gold prices are likely to find stiff resistance near $1793-$1814 meanwhile immediate support level could be seen near $1762-$1747.

With strong order inflow, diversification to non power segment and increased focus in O&M segment, we expect the company to be in its growth trajectory in FY22.

Impressive order book and superior execution capabilities will drive earnings growth. Therefore, we reiterate buy rating and value
the stock at a P/E of 7x FY23E earnings with a target price of Rs 894.

Dodla dairy, a South based dairy firm, had a strong listing today with 28% premium at Rs 550/share against its issue price of Rs 428/share. The Rs 520 crore issue had seen strong subscription of 45.6 times, given its presence in niche space and decent fundamentals.

Dodla Dairy is one of the leading dairy firm in Southern India and is the third-largest player in terms of milk procurement per day. It derives about 30% of its revenue from the value added products, the share of which is likely to accelerate going ahead.

The issue was reasonably priced at 16.4x FY21 P/E vis-à-vis its peers, which also led to strong interest in the counter apart from its presence in niche space. However, the listed companies in this space have not done well so far, thus it needs to be seen how this company performs going ahead.