Daily Markets - June 1, 2021 - Mr. Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities

Indian markets had a lackluster session on 1st June, Tuesday. As US markets were closed yesterday for the Memorial day - Nifty did not had any strong cues to begin with. After opening marginally higher, profit booking set in and finally it closed near yesterday's levels. At close, the Nifty was down 8 points at 15574.

Crude oil prices were sharply higher, with the international benchmark Brent topping $70 a barrel, amid optimism over the outlook for demand growth as the global economy recovers ahead of a meeting of major producers. The Organization of the Petroleum Exporting Countries and its allies, a grouping known as OPEC+, is due to meet later in the day. The cartel is widely expected to continue to gradually ease fuel supply curbs as planned over the next two months.

Most market in Europe and Asia advanced on Tuesday as China's factory activity expanded at the fastest pace this year in May. The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) rose to 52.0 last month, the highest level since December and inching up from April's 51.9.

The 75% peak trading margin norm by the Securities and Exchange Board came into effect from today. This is the third phase of implementing higher margin on day trading. It had its impact on volumes which were about 10% lower than recent averages.

Overall declining stocks outnumbered advancing and broader market were also subdued. 15700 is a key resistance for Nifty while support is at 15374.

Source : Equity Bulls

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