Daily Market Commentary - June 4, 2020 - Bonanza Portfolio

Mr. Vishal Wagh, Research Head

Nifty opened flattish due to mixed global cues and sold off due to profit booking as well as positions unwinding in the first half. In the second half, telecom stocks drove the recovery and Indices managed to curtail the losses by more than 70% for the day. Bharti Airtel gained on the back of news of potential investment from Amazon, the stock gained 5.73% for the day. Reliance and Idea also gained 2.5% and 6% respectively. On the flip side, Bank and NBFC shares witnessed profit booking due to SC asking RBI / Finance ministry to reply on waiver of interest on loans during moratorium period.

Market breadth remained in favor of bulls for every five gainers there were four losers. Except for Reality, Banks and NBFC, other sectors closed in green. India VIX contracted 1% closed below 30. USDINR trading at 75.54.

Going forward, 9930 will work as support, below which we are expecting Nifty to fall till 9700. On the higher side, 10200 will work as resistance. For Banknifty major support will be 20300 and resistance will be seen at 21900. Above 21900 it may test 22450 on the lower side below 20300 it can touch 19400.

Source : Equity Bulls

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