Markets Daily - June 8, 2020 - Mr. Deepak Jasani, Head Retail Research, HDFC Securities

Benchmark indices ended on positive note though off the highs of the day on the first trading day of the week. The Nifty has now gained in eight out of the past 10 trading sessions. It ended on June 08 with Nifty closing up 25.30 points or 0.25% at 10167.50.

Trade happened with high volumes with broad participation among large midcaps and midcaps. Small Banks, NBFC, Oil & Gas, PSU, Auto and IT stocks did well, while Media, Pharma and Metal stocks underperformed.

Equity mutual funds inflows fell for the second straight month as markets remained volatile even as the economic activity continued to resume in phases. Net inflows into equity and equity-linked schemes declined 15% over the previous month to Rs 5,256 crore in May, according to data released by AMFI.

Asian markets rose on Monday, following U.S. jobs numbers released Friday that beat expectations and an extension of oil-production cuts by OPEC+ on Saturday.

European stocks slipped early on Monday, giving back some of last week's gains due to profit taking as traders continued to focus on the reopening of the global economy. Germany on Monday said it suffered a record drop in industrial production, of 17.9%, in April.

Technically, the downgap made by the Nifty on March 12 at 10334 is providing tough to be breached. 10061-10094 could be the support for the Nifty while 10334 could provide resistance. Stock and sector rotation could provide good opportunities to traders in the near term.

Source : Equity Bulls

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