Markets Daily - June 3, 2020 - Mr. Deepak Jasani, Head Retail Research, HDFC Securities

Indian equity markets continued to rise for the sixth straight session on June 3 - the longest winning streak in ~7 months. Profit taking in the last one hour of trade cut the gains to some extent. At close the Nifty was up 82.40 points or 0.83% at 10061.50. Markets rose on high volumes and were led by gains in Financials, Gas distribution and Aviation stocks. Auto, Power IT and Cement stocks fell.

Asian shares rose Wednesday after Wall Street extended its gains for the third straight day, driven by optimism over economies reopening from shutdowns to stem the coronavirus pandemic. The services Purchasing Managers' Index for China advanced to 55.0 in May from 44.4 in April, signaling a recovery in the sector. The pace of expansion was the steepest since October 2010.

European stocks extended gains for a third day on Wednesday as investors looked past U.S. unrest to data indicating more economic strength as global pandemic lock downs unwind. The composite index of purchasing managers (PMI) of 19 countries of the Eurozone in May rose to 31.9 after falling to 13.6 a month earlier, On Wednesday investors expect the German government will announce the second package of measures to support the economy with a volume of 100 billion Euro.

The India services Purchasing Manager's Index (PMI) released by IHS Markit stood at 12.6 in May, slightly better than 5.4 recorded in April, but still way below the 50-mark that divides contraction from expansion.

Technically the Nifty looks tired after rising for 6 straight sessions and looks set for correction. On upmoves, 10175 could provide resistance while 9889-9995 could provide support.

Source : Equity Bulls

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