After Nifty recording a new peak on Friday, mainly on Reliance strength, the markets are expected to begin the new week marginally lower. Asian markets in early trade on Monday indicate weakness, as the US market is closed for a holiday on Monday.
The SGX Nifty is currently at 15,442, against the Nifty June futures close of 15,463.85, indicating a 20-point gap-down opening.
Analysts said though the undertone remains strong, after a strong rally, bulls may take a breather.
According to Joseph Thomas, Head of Research, Emkay Wealth Management, the equity market closed for the week on a high note with net gains for the major indexes. The buoyancy stems from improving pandemic related conditions and broad indications that it has peaked out. This gives greater certainty about the future in terms of the likely relaxation of lockdown conditions in the major cities across the country, and also a faster return to normalcy."
The global economic and market conditions have also supported with the growth outlook for all major regions, contributing to a more favourable impact on trade and commerce. The US numbers, the RBI MPC meeting next week, and the further gains in the pandemic conditions are likely to engage the attention of market participants in the coming week, he added.
Rohit Singre, Senior Technical Analyst at LKP Securities, said Index closed on a positive note for a third consecutive session at 15,436 with nearly one per cent and formed a bullish candle on the daily chart. The index managed to closed above its previous swing high, which shows breakout is done and we may see more northward move in the near term if index managed to hold above 14,350 zone, immediate support is coming near 15,400-15,350 holding above said levels structure positive and immediate hurdle 15,500-15,600 zone"
Stocks to Watch
HDFC Bank: The Reserve Bank of India has imposed a ₹10 crore fine on HDFC Bank. The monetary penalty has been imposed on the private sector lender for contravention of provisions of section 6(2) and section 8 of the Banking Regulation Act, 1949, the central bank said in a statement on Friday. The action has been taken after RBI looked into a whistleblower complaint about irregularities in HDFC Bank's vehicle loan division on July 23, 2020. The complaint reportedly claimed that the lender forced its customers to purchase a vehicle tracking device for four years till December 2019.
Virinchi Ltd has clarified with reference to the cancellation of Covid specific permission given to Virinchi Hospitals, Banjara Hills, Hyderabad. The company has announced that the order from the Office of the Director of Public Health and Family Welfare, Government of Telangana, is to not admit Covid cases due to one particular medico-legal issue and not related to any billing or hospital tariff related issue. The management of the hospital is taking adequate steps to address the same. THe stock may come under pressure.
Allied Digital Services, APM Industries, Asian Granito India, Astron Paper & Board Mill, Aurobindo Pharma, Bannari Amman Spinning Mills, Blue Coast Hotels, Chaman Lal Setia Exports, Chemcon Speciality Chemicals, Ganesh Housing Corporation, High Energy Batteries, Honeywell Automation India, Ingersoll-Rand (India), Jamna Auto Industries, JBF Industries, Karda Constructions, Kolte-Patil Developers, Lasa Supergenerics, Lloyds Steels Industries, Magma Fincorp, Man Industries, Marksans Pharma, Nahar Industrial Enterprises, Nahar Spinning Mills, Narayana Hrudayalaya, Prakash Industries, Rupa & Company, Shilpa Medicare, Simplex Realty, Tourism Finance Corporation of India, Uttam Galva Steels, Vascon Engineers, and Venus Remedies will announce their quarterly results on May 31 (Monday).