D Street reverses 4-day losing streak as benchmark indices gain nearly 1% to outperform Asian peers

Indices surged after a four-session lacklustre trade to close at higher levels as the markets made a strong recovery. On a weekly expiry day, Nifty finally managed to close on green note after a 4-day losing streak. Nifty opened on a negative note but showed a bounce back moment as it managed to close with gains. Bank Nifty closed the session at 35085.45 level with a gain of 139.30 points. India VIX, the volatility gauge, closed below 20 at 19.14 level with a loss of 3.53 percent. Midcap and Smallcap indices rose but underperformed the Nifty.

BSE Sensex soared 427 points on Thursday to close at 55,320. At close, Nifty was up 0.74 percent or 121.9 points at 16478.1. In the process, Nifty was the best performer in the Asian region, said Deepak Jasani, Head-Retail Research, HDFC Securities. Volumes on the NSE continued to be lower than recent averages, suggesting lower interest from FPIs. Nifty made a lower low on June 9 compared to the previous day but managed to close at the highest in 3 sessions. For the turnaround to sustain, Nifty will have to cross the resistance of 16,661 while 16,515 could act as a support. Unless the ECB sounds very hawkish in its meet later today (June 9), the upmove in the Nifty could continue over the next few sessions.

Among sectors Oil and Gas and Telecom indices gained the most while Metals lost the most. On the Sensex, Reliance Industries was the top gainer, up 2.6 per cent, followed by Dr Reddy’s, Bajaj Auto, and Bharti Airtel. Among major laggards on the Sensex were Tata Steel (-)3.84 per cent to end as the worst-performing Sensex stock, followed by Ultratech Cement, and NTPC.

Despite volatility, mutual fund equity schemes registered net inflows of Rs 18,529 crore in May, up from Rs 15,890 crore in April. Monthly contributions into systematic investment plans rose above Rs 12,000 crore after a month at Rs.12286 crore.

Indian rupee on Friday hit a fresh record low against the dollar as foreign institutional investors (FIIs) continued selling in local equity markets. The currency opened at 77.75 and touched a fresh record low of 77.8075 a dollar.

37 stocks out of Nifty 50 ended in green which suggest broad-based buying. All the sector managed to close in green, except metal and commodities while pharma and energy inched up more than 1 percent each. Dr Reddy, Reliance, BPCL, Eicher Motors, SBI Life were the top gainers. Among major losers were Tata Steel, Shree Cements, Tata Motors and Grasim.

Bulls roar back

Bulls finally made a comeback after a 4-session losing streak, as investors, with policy rate announcements now behind them, lapped up stocks that were in a downward spiral for quite some time, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. While volatility will be mainstay in the near-to-medium term, we may witness select bouts of recovery owing to bears taking a breather at regular intervals.

Technically, after a weak opening, the Nifty took support near the 20-day SMA and bounced back sharply. On daily charts, the index has formed a long bullish candle which supports further uptrend from the current levels. For day traders, 16,350 would be the trend decider level and above the same, the uptrend momentum is likely to continue till 16,550-16,650. However, a fresh round of selling is possible, if the index trades below 16350 and below which it could slip up to 16,250-16,200."

Palak Kothari, Research Associate, On the Technical Front, The Nifty has formed a BULLISH Marabozu candle with the support of 21 DMA which suggest upside movement in the counter. Nifty has given closing above 100*200-Hourly Moving Averages with a positive crossover which indicates sustain above the same can show upside moment in the counter. The momentum indicators Stochastic & MACD were trading with a positive crossover on a daily chart which suggest a northward journey in the counter. The Nifty may find support around 16,240 levels while on the upside 16,600 may act as an immediate hurdle. On the other hand, Bank Nifty has support at 34,500 levels while resistance at 35800 levels.Overall, Nifty is looking bullish for the next trading session with the support of 16,240 levels it can show 16,600-16,680 levels, Kothari said.

Mohit Nigam, Head-PMS, Hem Securities said, On the technical front, the key resistance levels for Nifty50 are 16,500 and on the downside 16,200 can act as strong support. Key resistance and support levels for Bank Nifty are 35,500 and 34,700 respectively.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd said, While volatility will be mainstay in the near-to-medium term, we may witness select bouts of recovery owing to bears taking a breather at regular intervals. Technically, after a weak opening, the Nifty took support near the 20-day SMA and bounced back sharply. On daily charts, the index has formed a long bullish candle which supports further uptrend from the current levels. For day traders, 16,350 would be the trend decider level and above the same, the uptrend momentum is likely to continue till 16,550-16650. However, a fresh round of selling is possible, if the index trades below 16,350 and below which it could slip up to 16,250-16,200, Tapse said.

Asian stocks fall

Asian stocks fell, U.S. bond yields edged up and a surging dollar pushed to a two-decade high against the yen on Thursday even as crude oil prices hovered above $120 a barrel, adding to price pressures.

European markets traded lower as investors worried about the impact of rate rises ahead of a European Central Bank meeting later in the day. Officials are set to wind down trillions of euros of asset purchases in a prelude to an interest-rate hike expected in July.

Rupee slips 8 paise

The rupee depreciated by 8 paise to close at 77.76 (provisional) against the US dollar on Thursday, weighed down by elevated crude oil prices and persistent foreign capital outflows.

At the interbank foreign exchange market, the rupee opened lower at 77.74 against the greenback and finally settled at 77.76, down 8 paise over its previous close.

During the session, the rupee touched an all-time low of 77.81 against the American currency.

On Wednesday, the rupee had recovered from its record low to close 10 paise higher at 77.68.

Gold gains Rs 130; silver rises by Rs 273

Gold prices in the national capital on Thursday gained by Rs 133 to Rs 50,907 per 10 grams, supported by rupee depreciation, according to HDFC Securities. In the previous trade, the yellow metal settled at Rs 50,774 per 10 grams.

Silver also jumped by Rs 273 to Rs 61,535 per kg from Rs 61,262 per kg in the previous trade.

Europe buckles up for ECB 'liftoff' signal

Investors buckled up on Thursday for the European Central Bank’s signal that it is ready to raise interest rates for the first time in a decade, while the yen weakened to a new 20-year low on bets the Bank of Japan will lag way behind. There was little else worth focusing on. How fast the ECB will now lift the euro zone's sub-zero borrowing costs has dominated markets for months, coming as part of the most widespread tightening of global monetary policy in decades.

(With inputs from Reuters)