Friday, Jun 02, 2023 | New Delhi 31*C

Investment Point: Cautious climate for every bullish stock market:

Local inflation rate likely to remain modest; The situation may deteriorate due to worsening US-China relations

On the third day of the week, the bull run that has been going on for the last few days in the Indian stock market came to a sudden break today and the BSE Sensex fell by around 2.23% and the Nifty future by around 2.01%. On the global front, China's GDP was lower than expected and high youth unemployment rate resulted in a crash in the Chinese stock market, Iran's airstrikes on Pakistan's Baluchistan and increasing risks from Houthi attacks on ships passing through the Red Sea, as well as strengthening of the dollar against the Indian rupee at the domestic level and corporate In the results, the negative impact of the private banking giant HDFC Bank resulted in a significant fall in the Indian stock market. The BSE Sensex fell by 1628 points to close at 71500 points, while the Nifty future closed by 442 points at 21587 points, and the Bank Nifty future closed by 2024 points at 46200 points.

On BSE, the midcap index closed down 1.09% and the smallcap index closed down 0.90%. As far as various sectoral indices are concerned, only IT, tech and consumer durables stocks were seen to gain on BSE, while all other sectoral indices closed lower. Out of total 3900 scrips traded on BSE, decliners were 2602 and gainers 1224, 74 scrips were unchanged. While in 3 stocks there was a bearish lower circuit of only sellers against a bullish upper circuit of only buyers in 9 stocks.

The aggregate market capitalization of BSE-listed companies fell by Rs 4.60 lakh crore to Rs 370.35 lakh crore as the index-based Sensex, Nifty fell, with selling in midcap and smallcap stocks adding to investors' wealth. Out of 30 companies in S&P BSE Sensex, 5 companies advanced, 24 companies declined and 1 company remained stable.

In the S&P BSE Sensex, HCL Technologies gained 1.34%, TCS 0.60%, Infosys 0.55%, Tech Mahindra 0.54% and Nestle India 0.08%, while HDFC Bank 8.46%, Tata Steel 4.08%, Kotak Mahindra Bank 3.66%, Axis Bank 3.18% and ICICI Bank was down 2.85%.

Nifty Future Technical Levels...

  • NIFTY FUTURE CLOSE ( 21587 ) :- The next swing is likely to see Nifty Future touch the all-important level of 21474 points from 21606 points to 21676 points, 21707 points with respect to the first and 21404 points very important strong stoploss trading. Positioning cautiously around 21404 point...!!

Bank Nifty Future Technical Level...

  • Bank Nifty Future Close ( 46200 ) :- The next fluctuation is possible Bank Nifty Future may touch the crucial level of 45808 points first and 45676 points from 46373 points to 46474 points, 46606 points very important level regarding strong stoploss trading. Positioning cautiously around 46606 points...!!

Specific technical level regarding future stock

  • Reliance Industries ( 2726 ) :- The share price of this company, the leader of Reliance Group, is currently trading around Rs.2690. Buyable with a stoploss of Rs.2670, this stock is likely to register a price of Rs.2744 to Rs.2760 in a short period of time...!! Bullish focus on Rs.2773...!!
  • SBI Cards ( 746 ) :- Fundamentally strong with a face value of Rs.10 This stock is buyable around Rs.727 Stoploss This stock from non banking financial company sector is bullish around Rs.763 to Rs.770 Profit oriented Excellent focus...!!!
  • IndusInd Bank (1642) :- This stock is sellable with a stoploss of Rs.1677 registering an overbought position around Rs.1664..!! It is likely to show the price of Rs.1626 to Rs.1606 in phases...!! Consider bullish above Rs.1690...!!
  • DLF Ltd. ( 778 ) :-According to the technical chart, this stock from the residential, commercial projects sector has a potential target price of Rs.760 to Rs.747 with a profitable sell around Rs.797. Consider a stoploss of Rs.808 for trading...!!!

Future direction of the market….

With China constantly facing a new economic crisis on the global front, the deteriorating relations between the US and China may worsen the situation and the boom is also seen to be widespread at the local level. Global economic uncertainty and attacks by Houthi terrorists have resulted in increased threats to ships traversing the Red Sea. According to Commerce Department figures, India's merchandise exports declined in 13 out of 30 sectors in December. Major export items in December saw a decline of 17.61% in petroleum products, 12.56% in ready-made garments and 11.43% in organic and non-organic chemicals, forcing India's exporters to curb exports by 25%. Due to the increase in export costs, the country's total exports are estimated to take a hit of $30 billion in the current financial year, and since many stocks in the Indian stock market are overbought, it is possible that funds, high net worth investors will see profit booking, so caution will be necessary at every surge.

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