Markets Daily - June 16, 2020 - Mr. Deepak Jasani, Head Retail Research, HDFC Securities

Indian Indices ended volatile trade on June 16 amidst positive global cues and escalating tensions between India and China. At close the Nifty was up 100.30 points or 1.02% at 9914, off 130 points from the day's high. Volumes on the NSE jumped back to normal with Private Banks and Metals stocks rising while power NBFC and Telecom stocks underperformed.

Global shares rose Tuesday, cheered by fresh moves by the U.S. Federal Reserve to support markets battered by the coronavirus pandemic. Even the other central Banks are speaking the same language. In line with the expansion of a government loan program for small businesses, the Bank of Japan said on Tuesday it will increase the amount of private debt it is prepared to purchase to 110 trillion yen ($1 trillion) from 75 trillion yen.

Other steps the BOJ has taken include doubling purchases of equities and a pledge to buy Japanese government debt without limit.

Talk that U.S. firms may be allowed to work with China's Huawei on new 5G standards eased trade jitters, and a report of a new $1 trillion U.S. infrastructure programme also boosted markets.

Technically, with the Nifty bouncing back strongly from the supports of 9720, the bulls are trying to make a comeback. The 9720 levels has been tested twice in the last two sessions and has held, suggesting it is a strong support. Markets could rally higher if these supports hold in the near term.

Source : Equity Bulls

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