Sensex snaps six days of gaining streak\, Nifty holds 10K mark

Sensex snaps six days of gaining streak, Nifty holds 10K mark

Weakness in today's session was on back of negative trend in Asian markets and Moody's downgrade to various domestic sectors in the recent days

Rupa Burman Roy        Last Updated: June 4, 2020  | 17:53 IST
Earlier domestic indices opened higher, but gave up gains on back of the weak cues from SGX Nifty and other Asian counterparts

Sensex and Nifty turned volatile and closed on a negative note on Thursday amid weakness in Asian counterparts. After six days of consecutive gains, Sensex closed 128 points lower at 33,980 and Nifty ended 32 points lower to 10,029. On Wednesday, Sensex closed 284 points higher at 34,109 and Nifty ended 82 points higher at 10,061.

Weakness in today's session was on back of negative trend in Asian markets and Moody's downgrade to various domestic sectors in the recent days. Indian Oil, ONGC, Titan, M&M, ONGC and HDFC were among the top laggards today, while Sun Pharma, TCS, PowerGrid, HDFC Bank, HCL Tech and ICICI Bank were the top performers today.

Ajit Mishra, VP - Research, Religare Broking said,"Markets opened in the green, taking cues from the global markets but the gains soon fizzled out due to continuous profit-taking in banking and financial stocks. However, noticeable buying interest in the IT and pharma majors capped downside."

Earlier domestic indices opened higher, but gave up gains on back of the weak cues from SGX Nifty and other Asian counterparts.

Asian markets opened tepid with some indices retracing back from the highs on mixed cues of continued optimism over economies returning to normal and concerns over rising US-China tensions. While markets in Shanghai, Hong Kong and Singapore were in the red, those in Japan, Korea, Taiwan were trading with gains.

US markets closed higher as investors shrugged off concerns over civil unrest and tensions with China giving importance to ADP unemployment data which was lower than expectation and countries returning back to business rather than unrest in US.

"Global cues were also mixed after Asian markets ended positive but European markets were awaiting details on ECB's stimulus plans,"said Vinod Nair- Head of Research- Geojit Financial Services.

Meanwhile, NIIT, DLF, Jyothi Labs, PI Industries, IL&FS Transmission, LKP Securities, Chemfab Alkalis, Cosmo Films, Tourism Finance Corporation, TD Power Systems among others will announce their Q4 results today

As per Nifty's technical indicators, index's long-term moving average (100-day SMA) is now placed around 10,358 mark. On the lower side, the index will initially find support around its medium-term moving average (50-day EMA) and then around its short-term moving average (20-day EMA), which are placed around 9,510 and 9,410 levels, respectively.

Its support is placed at around 9,930 and then at 9,800 levels, while resistance is observed at 10,180 and then at 10,360 levels.

Commenting on Nifty's near term outlook, Rohit Singre, Senior Technical Analyst at LKP Securities said, "Index again managed to close above 10k mark with minimal loss of 32 points and formed a doji candle pattern on daily chart which hints uncertainty in the markets. Going forwards 9900-9800 zone become good base in index and on the higher side 10100-10200 is become immediate hurdle, technically speaking index can see some consolidation move in the zone of 9800-10200.