Kicking off the week on a low, domestic benchmark indices Sensex and Nifty ended Monday’s trading session down by 1.6% each.
Kicking off the week on a low, domestic benchmark indices Sensex and Nifty ended Monday’s trading session down by 1.6% each. Domestic equity markets were seen following their Asian peers, all of whom registered losses on Monday. Sensex tanked 552 points to sit at 33,228 points while Nifty hung on to 9,813 points. “Indian benchmark indices fell on June 15 on the back of weak global cues. The markets fell and recovered part of the losses in line with the movement in European indices and Dow Futures. Volumes on the NSE were moderate with Pharma, IT and Diversified stocks leading the gains while Financials, Capital Goods, Auto, NBFC, Metals, Power & Oil & Gas stocks underperformed.,” said Deepak Jasani, Head Retail Research, HDFC Securities.
Asian stocks tumble: It was a rough start for Asian markets as all benchmark indices were down in the red. Nikkei 225 slipped 3.47%, Hang Seng fell 2.16%, while the Shanghai Composite was down 1%. Analysts said the fall was nudged by a risk-off attitude amongst investors due to concerns regarding the spread of the virus in India and globally.
Coronavirus cases: “The news of the second wave of the virus in other countries and rising cases in India were weighing on investors’ sentiment,” said Ajit Mishra, VP – Research, Religare Broking. India now has 3.33 lakh cases of coronavirus of which 1.53 lakh are active and 1.69 lakh have recovered. China is reportedly witnessing another wave of coronavirus cases as some parts of Beijing were shut down after 10 new cases were reported.
Reliance Industries mounts a comeback: Shares of Reliance Industries Ltd were initially down on the BSE sensex but staged a smart recovery in the closing hours of trade. The scrip ended 1.65% higher at Rs 1,615 per share.
Financial pull markets down: Nifty Bank was down 3.59% while Nifty Private Bank slipped 3.8% on Monday morning. Even Nifty Financial Services was down 2.9%. Among the 6 biggest losers on the 30-stock Sensex 4 were either banks for non-bank lenders.
What do the charts say?
“Index started the week on a negative note and closed the day at 9818 with a loss of 155 points. For coming session Support for nifty is coming near 9730-9675 zone and resistance for index is coming near 9930-10000 zone, index is in consolidation mood and the overall range would be 9500-10000 zone and final direction will be clear only when we see an either side breakout from the given range in index. Nifty bank closed a day at 19913 with huge loss of nearly 4 percent, immediate support for nifty bank is coming near 19740-19400 zone and resistance is coming near 20200-20500 zone,” said Rohit Singre, Senior Technical Analyst at LKP Securities.