Market updates: Sensex closes 223 points higher at 34,424

Nifty gains 90 points to finish at 9,580

 

3:55 pm

Sensex, Nifty close firm

Extending its rising streak to a third session, equity benchmark Sensex jumped 224 points on Friday, driven by gains in HDFC, ITC and HUL despite weak cues from global markets.

After gyrating 656.72 points during the day, the 30-share BSE index rebounded from the day’s low to settle 223.51 points or 0.69 per cent higher at 32,424.10. It hit an intra-day high of 32,480.52 and a low of 31,823.80.

The NSE Nifty advanced 90.20 points or 0.95 per cent to 9,580.30. During the day, it touched a high of 9,598.85 and a low of 9,376.90.

ONGC was the top gainer in the Sensex pack, jumping over 5 per cent, followed by Bajaj Auto, ITC, Sun Pharma, Nestle India, L&T, Maruti, UltraTech Cement and HUL.

On the other hand, Infosys, Axis Bank, Bharti Airtel, TCS and Titan were among the laggards.

Besides stock-specific action, heavy foreign fund inflows lent buying confidence to domestic investors, analysts said.

On a net basis, foreign portfolio investors bought equities worth Rs 2,354.14 crore on Thursday, provisional exchange data showed.

Further, markets witnessed volatility as India registered its biggest single-day spike of 7,466 coronavirus cases.

The number of COVID-19 cases in India crossed 1.65 lakh and the death toll climbed to 4,706, according to Health Ministry data.

Globally, the number of cases linked to the disease has crossed 58.10 lakh, with the death toll at around 3.60 lakh.

Meanwhile, bourses in Hong Kong and Tokyo closed on a negative note, while Shanghai and Seoul finished with gains.

Stock exchanges in Europe were trading in the red in early deals.

International oil benchmark Brent crude futures slipped 2.33 per cent to $35.19 per barrel.

On the currency front, the rupee appreciated 14 paise to provisionally close at 75.62 against the US dollar. - PTI

 

3:45 pm

Euro and yen gain before Trump's press conference on China

Under the trade deal between the US and China, there is a general prohibition on insisting on technology transfer as a condition for acquisitions, joint ventures and investments - File Photo   -  Reuters

 

The euro extended its gains on Friday to a two-month high as traders waited for US President Donald Trump's response to China's tightening control over Hong Kong, which could further worsen tensions between the two over the financial hub.

The yen rose against major currencies as investors looked for safe havens before Trump's response to China's passing of a national security law for Hong Kong.

“I think the market is still fearful that it might escalate into something more serious. If he was serious with trade tariffs, that would have a meaningful impact,” said Moh Siong Sim, a currency strategist at Bank of Singapore. Click here to read more on the global forex market.

 

3:35 pm

Oil falls but set to post biggest monthly rise in years on output cuts

 

Oil prices edged lower on Friday, set to post their first weekly fall in five weeks, after US inventory data showed lacklustre fuel demand in the world's largest oil consumer, while worsening US-China tensions weighed on global financial markets.

Brent crude slipped 43 cents, or 1.2 per cent, to $34.86 a barrel by 0643 GMT and US West Texas Intermediate (WTI) crude was at $33.14 a barrel, down 57 cents, or 1.7 per cent. Click here to read in full the global oil markets report.

 

3:20 pm

Stocks slip as investors await Trump's Hong Kong response

 

Global stock markets fell and safe havens such as bonds and the Japanese yen gained on Friday, as investors awaited Washington's response to China tightening control over the city of Hong Kong.

China's parliament on Thursday pressed ahead with national security legislation for the city, raising fears over the future of its freedoms and its function as a finance hub.

US President Donald Trump said he would hold a news conference on China later on Friday. Trepidation about a further deterioration in Sino-US relations put investors on edge.

European stocks opened lower, with the pan-European STOXX 600 index down 0.86 per cent. Germany's DAX fell 1.2 per cent, Britain's FTSE 100 by 7 per cent and France's CAC 40 by 1 per cent. Futures for the S&P 500 slipped 0.4 per cent. Click here to read in full the stock markets report.

 

3:00 pm

The Central Board of Direct Taxes (CBDT) has notified the minimum fee to be received by the fund manager in India managing different type of offshore funds.

CBDT notifies minimum fee for India based fund managers managing offshore funds

 

2:45 pm

Rupee: Go long above 75.6

 

The rupee (INR) has opened the session marginally higher at 75.7 compared to Thursday’s close of 75.76 against the dollar (USD). But it continues to stay within the range 75.6 and 76.

If the rupee gains further and breaks out of the resistance at 75.6, the exchange rate is likely to move to 75.4. Above that level, the resistance is at 75.15. On the other hand, if the domestic currency weakens and breaches the support at 76, it might result in a considerable sell-off. The support below 76 is at 76.3.

Yesterday, the Indian currency closed flat even as the Foreign Portfolio Investors (FPI) bought domestic assets considerably. The net inflow of FPIs on Thursday stood at ₹2,354 crore (equity and debt combined). Click here to read more.

2:30 pm

Nifty 50 June Futures (9,404)

 

The Indian benchmark indices i.e. the Nifty spot and the Sensex spot indices are trading with a downward bias. The Nifty spot is down by 0.2 per cent whereas the Sensex spot is down by 0.4 per cent. Among the major Asian indices, the Nikkei index is down by 0.3 per cent and the Hang Seng index is down by 0.7 per cent.

The market breadth of the Nifty 50 index is biased towards bulls as 34 out of the 50 stocks in the index are in the green so far. Even though the benchmark indices are slightly trading lower, the mid-cap and the small-cap indices have been gaining. Among the sectoral indices, the Nifty Realty index, up by a little over 2 per cent, is the top performer. The Nifty Bank index is the top loser, down by 0.9 per cent. The volatility has come down marginally as shown by the volatility index – India VIX, which is down by nearly 0.7 per cent to 29.8 levels. Click here to read more.

 

2:10 pm

Indices trade in the green

Benchmark indices, Sensex and Nifty, which opened the day in the red and extended their losses in early trade, have recovered from their early lows to trade in the green in the afternoon session.

Sensex was at 32,310, up 109 points or 0.34 per cent, while the Nifty was at 9,515, up 25 points or 0.26 per cent higher.

The top gainers on the Sensex were Bajaj Auto, ITC, HeroMoto Corp, L&T and Nestle India, while the laggards were Bharti Airtel, Infosys, Titan, Axis Bank and M&M.

9:50 am

Dollar bides time, yuan falls before Trump takes stage on China

Under the trade deal between the US and China, there is a general prohibition on insisting on technology transfer as a condition for acquisitions, joint ventures and investments - File Photo   -  Reuters

 

The dollar was hemmed into a narrow trading range on Friday as traders' focus shifted to US President Donald Trump's response to China's passage of a national security law for Hong Kong.

The yuan fell in onshore trade and remained near a record low in offshore trade as markets turned nervous before Trump's announcement later on Friday of policy moves that could ignite a diplomatic row between Washington and Beijing.

The greenback was on course for a weekly loss against major currencies as progress in lifting coronavirus lockdowns and stimulus plans in Europe weakened demand for safe havens, but the mood could quickly worsen if US-China tensions increase. Click here to read in full the global forex market report.

9:30 am

Asian stocks slip as markets await Trump’s Hong Kong response

Asia's stock markets pulled back and major currencies were held in check on Friday, as investors await the US response to China tightening control over the city of Hong Kong.

China's parliament on Thursday pressed ahead with national security legislation for the city, raising fears over the future of its democratic freedoms and function as a finance hub.

US President Donald Trump, who has vowed a tough response, said he will hold a news conference on China later on Friday. Trepidation about a further deterioration in US-China relations sent stocks lower and put investors on edge. Click here to read in full the Asian stock markets report.

 

9:15 am

Opening bell

The benchmark indices, Sensex and Nifty, opened Friday on a weak note. Sensex was down 236 points or 0.73 per cent at 31,964, while the Nifty dropped 71 points or 0.75 per cent to 9,419.

 

9:10 am

Day Trading Guide for Friday, May 29, 2020

₹945 • HDFC Bank

S1

S2

R1

R2

COMMENT

930

913

960

975

Make use of intra-day dips to buy the stock while retaining a stop-loss at ₹930 levels

 

₹707 • Infosys

S1

S2

R1

R2

COMMENT

695

685

715

725

Initiate fresh long positions with a fixed stop-loss if the stock reverses higher from ₹695 levels

 

₹190 • ITC

S1

S2

R1

R2

COMMENT

187

184

193

196

Fresh short positions are recommended with a tight stop-loss only if the stock of ITC falls below ₹187 levels

 

₹78 • ONGC

S1

S2

R1

R2

COMMENT

75

73

80

82

Utilise intra-day declines to buy the stock of ONGC while maintaining a fixed stop-loss at ₹75 levels

 

₹1472 • Reliance Ind.

S1

S2

R1

R2

COMMENT

1455

1440

1485

1500

Initiate fresh long positions with a stiff stop-loss if the stock of RIL rebounds up from ₹1,455 levels

 

₹158 • SBI

S1

S2

R1

R2

COMMENT

153

149

164

169

Consider initiating fresh long positions with a tight stop-loss if the stock of SBI reverses higher from ₹153 levels

 

₹2005 • TCS

S1

S2

R1

R2

COMMENT

1985

1965

2025

2045

Fresh long positions are recommended with a stiff stop-loss only if the stock of TCS gains above ₹2,025 levels

 

9483 • Nifty 50 Futures

S1

S2

R1

R2

COMMENT

9420

9370

9535

9600

Consider initiating fresh long positions with a tight stop-loss if the contract rebounds up from 9,420 levels

 

S1, S2 : Support 1 & 2; R1, R2: Resistance 1 & 2.

 

9:00 am

Today's Pick: Bharat Electronics (₹69.5): Buy

 

Investors with a short-term perspective can buy the stock of Bharat Electronics (BEL) at current levels. The stock has been in a medium-term sideways consolidation phase in the wide band between ₹56 and ₹80 since early March.

In early May, the stock found support at the lower boundary (₹56) and bounced up. Within the sideways phase, the stock has been in a near-term uptrend over the past three weeks.

On Thursday, the stock gained 4.4 per cent accompanied by good volume, breaking above a key resistance at ₹68 as well as the 50-DMA. Also, the stock trades well above its 21- and 50-DMAs. Click here to read Today's Pick on Bharat Electronics.nc

Published on May 29, 2020