Market Updates: Sensex gives up early gains on profit-booking, ends 83 points higher at 34,370

Closing bell

Equity benchmark Sensex surrendered most of the day’s gains to end marginally higher on Monday as investors chose to book profits after a swift market rally.

After surging over 640 points in early trade, the 30-share BSE index settled 83.34 points, or 0.24 per cent, higher at 34,370.58.

Similarly, the NSE Nifty closed 25.30 points, or 0.25 per cent, up at 10,167.45.

IndusInd Bank was the top gainer in the Sensex pack, soaring around 7 per cent, followed by Axis Bank, Bajaj Finance, ONGC, Titan, Infosys and Tech Mahindra.

Shares of Reliance Industries (RIL) jumped around 3 per cent during the day, hitting their one-year peak, after the company sold 1.16 per cent stake in its digital unit Jip Platforms to Abu Dhabi Investment Authority for Rs 5,683.50 crore.

Shares, however, closed 0.51 per cent lower as investors cashed in on recent gains. M&M, UltraTech Cement, HDFC Bank and Nestle India were also among the laggards.

The market opened on a positive note following positive cues from Asian peers as OPEC+ output cut extension for additional month, said Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi.

However, during the afternoon session, the benchmarks gave up most gains on profit-booking by traders after an almost 1,200 point rally in Nifty since last week, he added.

On the global front, bourses in Shanghai, Hong Kong, Seoul and Tokyo settled with gains, while those in Europe were trading on a weak note.

International oil benchmark Brent crude futures rose 0.95 per cent to $42.70 per barrel.

On the currency front, the rupee settled on a muted note, up 3 paise, at 75.55 (provisional) against the US dollar. - PTI

Benchmark indices drop lower

The Sensex and Nifty trimmed their morning gains ahead of the close on Monday.

Sensex held gains of 45 points or 0.13 per cent at 34,332, while the Nifty was up 19 points or 0.19 per cent at 10,161.

The top gainers on the Sensex were IndusInd Bank (up 7 per cent), Axis Bank, Bajaj Finance, ONGS and Titan, while the laggards were M&M, UltraTech Cement, HDFC Bank, Tata Steel and Nestle India

E uropean shares pull back from 3-month highs after rally

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European shares retreated from three-month highs on Monday, as investors locked in some profits following a strong rally last week on hopes of a post-coronavirus recovery.

The pan-European STOXX 600 declined 0.8% by 0709 GMT, led lower by personal and household goods, healthcare and retail sectors.

The pull back came after US tech-heavy Nasdaq breached its intraday record high on Friday and the STOXX 600 closed 14% below its all-time high as improving economic data and fresh stimulus measures lent weight to hopes that the worst is behind.

AstraZeneca slipped 1.8% after Bloomberg reported it had approached US rival Gilead Sciences about a possible merger to form one the world's largest drug companies.

German card payments company Wirecard dropped 4.1% after prosecutors opened proceedings against its entire management board as part of a market manipulation probe.

Oil majors Royal Dutch Shell, BP and Total rose between 0.5% and 3% as crude prices climbed after major producers agreed to extend a deal on record output cuts. - Reuters

Big Story | How banks are caught in the Covid grip

deep pit in the desert. 3d rendering

“Last year we said, ‘Things can’t go on like this,’ and they didn’t, they got worse.” — Will Rogers (American humorist, actor and author).

There is no better way to sum up the unceasing turmoil that has been gripping the Indian banking system over the past 4-5 years. The Covid-19 pandemic that has thrown our economy out of kilter, to say the least, has made the road to recovery much longer and tougher for the banking sector.

The recent downgrade of India’s sovereign rating by Moody’s has put the spotlight back on the stress in the financial system that is only growing deeper. Click here to read more on banks in the Covid grip.

Dollar edges down; New Zealand and Aussie dollars gain

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The dollar strengthened against a basket of currencies in overnight trading on Monday but slipped in early London trading, as investors adjusted their expectations for an economic recovery after Friday's US employment data saw markets rally.

A recovery in US employment data lifted hopes of a quicker global economic revival on Friday, but in Europe on Monday the rally in stocks paused as investors turned cautious again.

New Zealand said on Monday that it has eliminated transmission of the coronavirus domestically and will lift all containment measures except for border controls, making it one of the first countries to do so. Click here to read in full the global forex report .

Second Tranches of Bharat Bond ETF to open for subscription next month

The Finance Ministry has decided to bring in the second tranche of Bharat Bond Exchange Traded Fund (ETF) in July. The first tranche, which was launched in December, mobilised nearly ₹12,400 crore and currently units are being traded like any share on stock exchanges. Click here to read more on the Bharat Bond ETF .

Nifty call: Go long with stop-loss at 10,230

Both the Nifty and Bank Nifty indices fell sharply before the tech glitch could be resolved Paul Noronha

The benchmark indices i.e. the Nifty spot and the Sensex spot indices are trading with a bullish bias. While the Nifty spot index is up by 1.5 per cent, the Sensex spot index is up by 1.3 per cent. The Asian indices are giving positive cues; the Nikkei index closed today’s session with a gain of 1.3 per cent. The Hang Seng and Shanghai composite index are up by 0.2 per cent and 0.3 per cent, respectively. Click here to read in full the Nifty call report.

Oil prices rise on OPEC+ cuts, record China imports

Oil climbed on Monday after major producers agreed to extend a deal on record output cuts to the end of July and as China's crude imports hit an all-time high in May.

Brent crude was up 51 cents, or 1.2 per cent, at $42.81 per barrel, by 0628 GMT, while US West Texas Intermediate (WTI) crude rose 32 cents, or 0.8 per cent, to $39.87 a barrel.

Both hit their highest since March 6 earlier in the session, at $43.41 and $40.44, respectively.

Brent has nearly doubled since the Organization of the Petroleum Exporting Countries (OPEC), Russia and allies - collectively known as OPEC+ - agreed in April to cut supply by 9.7 million barrels per day (bpd) during May-June to prop up prices that collapsed due to the coronavirus crisis. Click here to read in full the oil markets report .

Sensex, Nifty hold steady

The BSE Sensex was firm but off its morning highs at midsession. The index was trading higher by 340 points or 0.99 per cent at 34,643, while the Nifty was at 10,240, up 98 points or 0.97 per cent.

The top gainers on the Sensex are IndusInd Bank (up 7.89 per cent), Axis Bank (7 per cent), ONGC (5.23 per cent), Bajaj Finance (5.12 per cent) and Titan (4.22 per cent).

The laggards were HDFC Bank (down 1.25 per cent), Netle India (1.24 per cent), Sun Pharma (0.81 per cent), UltraTech Cement (0.72 per cent) and Bajaj Auto (0.51 per cent).

Among the BSE sectoral indices, the oil and gas index rose 3.33 per cent, IT 2 per cent and consumer durables 1.77 per cent. The healthcare index alone was in negative territory.

Rupee edges lower

The rupee, which opened flat at 75.59, has dropped a shade lower to trade at 75.61 at mid-session on Monday.

The high for today is 75.50 and the low is 75.64. The domestic unit closed the previous week at 75.58 to the dollar.

With 9,983 new cases, India records an other big spike of Covid cases

The death toll due to Covid-19 rose to 7,135 and the number of cases climbed to 2,56,611 in the country after it registered 206 fatalities and a record single-day spike of 9,983 cases till Monday 8 am, according to the Union Health Ministry. Click here to read in full the report on Covid cases .

Reliance Industries shares ride up on Abu Dhabi Investment deal

Shares of Reliance Industries on Monday jumped nearly 3 per cent after the company sold 1.16 per cent stake in its digital unit to Abu Dhabi Investment Authority (ADIA) for Rs 5,683.50 crore.

It gained 2.74 per cent to touch a one-year high of Rs 1,624 on BSE. On NSE, it rose 2.32 per cent to Rs 1,618.40 -- its 52-week high.

Reliance Industries on Sunday said it sold 1.16 per cent stake in Jip Platforms to ADIA for Rs 5,683.50 crore, taking the cumulative fund raising to Rs 97,885.65 crore, which will help pare debt at the oil-to-telecom conglomerate.

“This investment values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. ADIA’s investment will translate into a 1.16 per cent equity stake in Jio Platforms on a fully diluted basis,” the company said in a statement.

With this investment, Jio Platforms has raised Rs 97,885.65 crore from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala and ADIA in less than seven weeks.

Jio Platforms raises Rs 5,683.50 crores from Abu Dhabi Investment Authority

Continuing its fund-raising spree, Jio Platforms, a subsidiary of Asia's richest man Mukesh Ambani-controlled Reliance Industries Ltd (RIL), has raised Rs 5,683.50 crore from Abu Dhabi Investment Authority (ADIA). This is the eighth in a series of fund raising by Jio Platforms since April 22. Click here to read more on Jio's fund raising .

The rupee opened the week on a flat note, slipping 1 paisa to 75.59 against the US dollar in early trade.

Daily rupee call: Rupee likely to post gains

Last week, the rupee (INR) ended flat at 75.57 compared to the preceding week’s close of 75.61 against the dollar (USD). Thus, the local currency is holding the range between 75 and 75.6 within which it has been oscillating since the beginning of this month.

Currently hovering around 75.6, the rupee might appreciate taking support at 75.6. On the upside, it will face hindrance at 75.3 and 75.15. But in case the domestic unit slips below 75.6, it can attract considerable selling interest. Potential support levels are 75.8 and 76. Click here to read more on the daily rupee call .

SAIL: Consider Bull-Call spread

The long and medium-term outlook for SAIL (₹33.50) remains negative, unless the stock moves past below ₹53.7. However, the recent bounce back from ₹20.15, the short-term outlook has turned positive for SAIL. While the immediate resistance appears at ₹36.40, SAIL finds a major resistance at ₹44.50. On the other hand, it finds an immediate support ₹28.40 and a conclusive close below that level will trigger a fresh fall on the stock that could drag the stock to its year-low level. However, we expect the stock to move in a narrow range with a positive bias. Click here to read more on the SAIL stock .

IndusInd Bank promoters to purchase shares from open market

All six banking stocks in the Sensex pack ended higher on Friday. The stock of IndusInd Bank, which had been dipping after touching a high of Rs. 452 early this week, closed at Rs. 422.55, up 1.84 per cent, on the BSE SHASHI ASHIWAL

The promoters of IndusInd Bank plan to purchase additional shares from the market. "We shall now purchase additional shares from the open market in India, within the overall regulatory prescribed promoter equity holding cap," it said in a regulatory filing.

IndusInd International Holdings and IndusInd Holdings, promoters of IndusInd Bank, currently hold 14.68 per cent of the bank's shares.

The bank had in April informed the bourses that its promoters had written to the Reserve Bank of India for permission to increase their stake to 26 per cent.

The IndusInd Bank scrip was up over 6 per cent in early morning trade on BSE.

Sensex, Nifty hold firm

The benchmark indices traded steady in the morning session on Monday. Sensex was up 491 points or 1.43 per cent at 34,778, while the Nifty was at 10,275, up 133 points or 1.31 per cent higher.

The top gainers on the Sensex were IndusInd Bank (up over 6 per cent), Axis Bank (5 per cent), Bajaj Finance (4.61 per cent), Titan (4.4 per cent) and ICICI Bank (3.65 per cent).

Nestle India and Sun Pharma were the only stocks in weakly negative territory.

A PTI report said the Sensex rallied over 600 points in early trade on gains in index-heavyweights Reliance Industries, HDFC Bank and ICICI Bank amid positive cues from global markets and sustained foreign fund inflow.

Shares of Reliance Industries jumped around 2 per cent after the company on Sunday said it sold 1.16 per cent stake in its digital unit Jio Platforms to Abu Dhabi Investment Authority for Rs 5,683.50 crore.

This is the eighth deal by the oil-to-telecom conglomerate for its digital unit in less than seven weeks, completing the sale of the targeted 21 per cent equity in Jio Platforms ahead of a potential IPO.

In the previous session, the BSE barometer settled 306.54 points or 0.90 per cent higher at 34,287.24 and the broader Nifty rose 113.05 points or 1.13 per cent to 10,142.15.

On a net basis, foreign portfolio investors bought equities worth Rs 97.61 crore in the capital market on Friday, provisional exchange data showed.

According to traders, while Reliance Jio deals boosted domestic benchmarks, positive cues from Asian peers and persistent foreign fund inflow led to bullish sentiment in the overall market.

On the global front, bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading with gains amid hope of economic recovery as coronavirus-led lockdowns eased across the world.

International oil benchmark Brent crude futures rose 1.47 per cent to $42.92 per barrel (with inputs from PTI).

Oil prices inch higher, but 1-month supply cut extension falls short of market hopes

Oil crept higher on Monday, but gave up big early gains as optimism over major crude producers' deal to extend record output cuts gave way to disappointment that the accord didn't extend beyond the end of July.

Brent crude had climbed as high as $43.41 a barrel but by 0239 GMT was trading up just 21 cents, or 0.5 per cent, at $42.51. US West Texas Intermediate (WTI) crude rose 2 cents, or 0.05 per cent, to $39.57 a barrel, after earlier touching $40.44 earlier. Both hit their highest since March 6. Click here to read in full the oil markets report .

Dollar is dented as data bolsters hope for economic recovery

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The US dollar fell against the Antipodean currencies and the British pound after surprising improvement in US labour market data bolstered expectations for economic recovery, which reduced safe-harbour demand for the greenback.

The Australian and New Zealand dollars both rose to their highest since January after data showed a smaller-than-expected fall in Chinese exports, which supports commodity currencies.

In contrast, the US dollar traded near its highest in more than two months against the yen, supported by recent gains in long-term Treasury yields as investors await the outcome of a US Federal Reserve meeting. Click here to read in full the global forex report .

World shares advance on surprise US job recovery

US stock futures and Asian shares advanced on Monday after a surprise recovery in US employment gave further confidence of a quick economic recovery after many weeks of lockdowns aimed at controlling the coronavirus pandemic.

US S&P500 futures rose 0.5 per cent to stand near their highest levels since late February while Japan's Nikkei opened more than 1 per cent higher. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent in early trade, with South Korea's Kospi rising 1.4 per cent. The Australian share market was closed for a holiday.

US non-farm payrolls rose by 2.509 million jobs last month, in contrast with consensus estimates of a fall in 8 million jobs after a record plunge of 20.687 million in April. Click here to read in full the global markets report .

Opening bell

The benchmark indices, BSE Sensex and NSE Nifty, surged more than 1.5 per cent in opening trade on Monday.

Sensex was up 511 points or 1.49 per cent at 34,799, while the Nifty spurted 151 points or 1.5 per cent at 10,293.

Weekly trading guide: ITC consolidates with upward bias

SBI (₹187.8)

The stock of SBI surged last week and posted a significant gain of a little over 16 per cent. It has thus closed in the green for two straight weeks, indicating a considerable bullish momentum.

Consequently, the price has gone above both the 21- and 50-day moving averages, turning the short-term outlook positive; the stock can be bullish until it remains above ₹175. Substantiating the upward bias, the daily relative strength index has been rising along with the stock and has moved above the mid-point level of 50.

Also, the moving average convergence divergence indicator in the daily chart is in an upward trajectory and is on the verge of entering the positive territory. All these factors point to a potential rally in upcoming trading sessions.

However, one should be aware of the resistance at ₹192, where the 23.6 per cent Fibonacci retracement of the previous trend lies. So, taking that into account, traders can go long with a stop-loss at ₹175 if the price rallies past ₹192. The subsequent resistance can be spotted at ₹200. A breakout of this level can take the stock to ₹218.

ITC (₹200)

Even as the recent trend was bullish, the stock of ITC was largely trading in a tight range last week. It hovered around the critical level of ₹200, oscillating between ₹195 and ₹205 throughout the week.

Nevertheless, the stock is trading above the key support of ₹190, and as long as it remains so, it has a good chance to rally. Notably, the 50 per cent Fibonacci retracement of the prior downtrend coincides at ₹190, making it a significant level. Also, the stock stays well above both the 21- and 50-day moving averages and remains above the prior high, hinting at a good bullish momentum.

Supporting the upward bias, the daily relative strength index, though flat, is well above the mid-point level of 50. The moving average convergence divergence indicator in the daily chart, which already lies in the positive territory, retains the upward trajectory.

Considering these factors, traders can buy the stock on declines with a stop-loss at ₹185. On the upside, the the immediate resistance levels are at ₹216 and ₹230, which can be the potential near-term targets.

Infosys (₹703.5)

The stock of Infosys inched up last week and ended above the important level of ₹700, where the 61.8 per cent Fibonacci retracement coincides. However, the breakout does not look significant, which is affirmed by the price action that followed. The stock was fluctuating in a sideways trend between ₹695 and ₹712 post- breakout.

But the short-term trend of the stock is inclined to the upside as the support at ₹650 holds the key. Moreover, the price is above the 21- and 50-day moving averages — a bullish indication. Since the stock has been largely consolidating for the past two weeks, the daily relative strength index has been flat; it, however, stays above the mid-point level of 50.

Similarly, the moving average convergence divergence indicator, though in the bullish region, has been flat. The above factors show that the stock has a bullish bias, but it is struggling to move up.

Given the circumstances, traders can initiate fresh long positions with a stop-loss at ₹670 if the stock decisively rallies past the nearest resistance at ₹725. Above ₹725, the stock might rally to ₹760 and ₹800.

RIL (₹1,581.7)

The stock of Reliance Industries rallied sharply last week and broke out of a strong resistance at ₹1,500. Importantly, it registered a fresh lifetime high of ₹1,618 on Friday before ending the week at ₹1,581.7.

The price action in the daily chart suggests that the next leg of the bull trend has begun and so the stock can be expected to make fresh highs during the forthcoming sessions. The stock can be bullish until it stays above the support band between ₹1,485 and ₹1,500. Between these levels lies the 21-day moving average, making it a strong support area.

Notably, the 21-day moving average is well above the 50-day moving average, indicating that the uptrend is intact. Following the surge in price, the moving average convergence divergence indicator in the daily chart, which was beginning to show signs of weakness, now seems to be hinting at built-up of an upward momentum. The daily relative strength index, which is above the mid-point of 50, is showing a fresh uptick.

So, traders can buy the stock on declines with a stop-loss at ₹1,475. The potential targets can be ₹1,700 and ₹1,730.

Tata Steel (₹338.9)

The stock of Tata Steel, which had been moving in a sideways trend between ₹250 and ₹300 since mid-March, broke out of the range on Monday, turning the outlook positive. It posted a weekly gain of nearly 15 per cent as it ended the session at ₹338.9 compared with the preceding week’s close of ₹295.2.

The uptrend seems to be strong as the price surged throughout the week and breached the hurdle at ₹325 as well. As the stock rallied, the daily relative strength index moved up sharply, indicating a significant strength of the up-move.

Also, the moving average convergence divergence indicator in the daily chart has now moved into the positive territory. However, the stock has a notable hindrance at ₹345, where the 38.2 per cent Fibonacci retracement of the previous downswing lies.

Hence, traders can either go long with a stop-loss at ₹310 if the price breaches ₹345 or buy the stock with a stop-loss at ₹300 if the price moderates to ₹325. Above ₹345, the resistance levels are at ₹360 and ₹370 — the 50 per cent Fibonacci retracement level.

Index Outlook | Sensex, Nifty 50 pause above key supports

The domestic equity benchmark indices — the Sensex and the Nifty 50 — extended the rally last week, in line with the global markets. There was a buying-spree in the small- and mid-cap segments as well.

Rupee movement and crude oil price action will be keenly watched in the coming week.

On the global front, the US markets witnessed a sharp rally on Friday, after the jobs report surprised on the positive side. In the coming week, US-China trade tensions will continue to be on focus. The upcoming US Federal Reserve meeting will also be closely followed. Click  here to read more on the Index Outlook .

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