Closing Bell: Nifty ends above 15,800, Sensex gains 433 pts led by IT, oil & gas, metals

The Nifty, with a gap up opening, crossed the hurdle zone of 15700-15800. The index, however, couldn’t build upon the early gains & was in a consolidation mode post the positive start.

Going ahead, the index can witness a brief consolidation near 15700-15800 before stretching higher. On the higher side, the Nifty is expected to test the crucial psychological mark of 16000, where there is 20-DMA as well. Overall structure shows that the benchmark index can trade with sideways to bullish bias in the short term.

Bulls kept the momentum going for the third straight session, as buoyancy across the global markets boosted sentiment. The rally was led by IT stocks, which had come under relentless selling in the recent sell-offs.

While the change in mood has come as a major relief, the optimism may remain for a few more sessions before the market turns volatile amid concerns slowing global economy due to rate hikes and continuing foreign fund outflows.

Currently the market is trading near its important resistance level and the texture of the chart suggests there is a strong possibility of a quick intraday correction from the current levels.

For day traders, 15900 and 15925 would act as immediate resistance levels. Below the same, the correction wave is likely to continue till 15750-15700. On the flip side, above 15925 breakout, the index could move up to 16000. Contra traders can take a long bet near 15700 with a strict support stop loss of 15660.

Nifty gained for the third consecutive session on June 27, though gave up some gains during the day. At close, Nifty was up 0.85% or 132.8 points at 15832.1. Among sectors, IT, Metals and Capital Goods indices rose the most. Advance decline ratio ended sharply in the positive even as the Smallcap index outperformed the Nifty.

Falling inflation expectations and easing of COVID-19 restrictions in China that lifted global commodities helped assuage sentiments in global markets.

Volumes on the NSE continue to be on the lower side suggesting lack of conviction on the part of traders to take a big bet. Nifty in the current uptrend has entered the 15886-16172 downgap area, but has so far hesitated to build on gains. 15927-15638 could be the range for the Nifty in the near term.

Declining commodity prices have been lifting the exhausted domestic equity market during the recent sessions. Despite this positivity, the underlying fear of recession, tightening monetary policy and inflation can trigger the volatility going forward.

A strong revival in the market can only be expected when the economy stabilises from these uncertainties and when FIIs turn net buyers.

This is a segment where profitability is a few years away. Some of them might do well in the long run. But retail investors, instead of chasing hope, will be better off chasing solid stocks with strong fundamentals now.

Leading banks will report very good Q1FY23 results next month. That's a bird in hand; e-commerce companies are birds in bushes.

Indian rupee ended flat at 78.34 per dollar against Friday's close of 78.34.

Benchmark indices ended higher for the third straight session on June 27 with Nifty above 15800 amid buying across the sectors.

At close, the Sensex was up 433.30 points or 0.82% at 53,161.28, and the Nifty was up 132.70 points or 0.85% at 15,832. About 2311 shares have advanced, 1030 shares declined, and 140 shares are unchanged.

ONGC, Coal India, L&T, HCL Technologies and Tech Mahindra were among the top Nifty gainers. The losers were Eicher Motors, Apollo Hospitals, HDFC Life, Reliance Industries and Kotak Mahindra Bank.

All the sectoral indices ended in the green with capital goods, IT indices rose 2 percent each.

The BSE midcap index added 0.8 percent and smallcap index added 1.5 percent.

We believe that the Russian Default on the foreign debt will be a non-event for Indian Stock Markets. The markets globally have already discounted this event however, there could be a possibility of further isolation of Russia from the west.

Further, the contribution of Russia to world GDP is nominal and due to high crude oil and natural gas prices, Russia has been able to earn record current account surpluses in foreign exchange, thus leading to the strong performance of the Russian Ruble despite the massive sanctions.

Zomato’s acquisition of Blinkit for Rs 4,447 crore in an all-stock deal marked its entry into the emerging sector of “quick-commerce”. This deal shall provide cross-selling opportunities to Blinkit by gaining access to the 15mn active monthly users of Zomato and vice-versa.

Further, the merger might yield synergies in terms of better utilisation of Zomato’s hyperlocal delivery fleet and consequently reducing their cost of delivery. However, this high cash burning sector houses fierce competition from the likes of Zepto, Dunzo, Swiggy Instamart BigBasket, etc and it will be interesting to see how this expensive investment by zomato pans out in the future.

Moreover, whether Ola’s decision to exit food delivery space to focus on its core streams of strength amidst the current market conditions should have been a learning lesson for zomato too, is a question which might be answered in the near future.

Waltham Forest Council, based in East London, England, has selected Oracle Fusion Cloud Applications Suite to streamline operations. By using Oracle Fusion Applications for finance, procurement, and HR the Council will be able to improve insights, reduce costs, and enhance its employee experience. The implementation will be delivered by Oracle Partner Network (OPN) member, Evosys, a Mastek company.

Mastek was quoting at Rs 2,109.60, up Rs 65.55, or 3.21 percent