Daily Market - June 4, 2021 - Mr. Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities

Indian benchmark indices ended the day with small losses on the last trading session of the week. After opening on a positive note, Nifty made an attempt to move up in the early part of the session. It made a new high at 15733 levels and showed minor weakness from the highs. A recovery in the last one hour helped to curb the losses. The Nifty finally lost 20.1 points or 0.13% to close at 15,670.3. Broad market indices like the BSE Mid Cap and Small Cap indices gained more, thereby outperforming the Sensex/Nifty. Market breadth was positive on the BSE/NSE.

Sectorally, the top gainers were the BSE Oil and Gas, Capital Goods, Metal, Telecom and Auto indices. The top losers were the BSE Bankex, CD and FMCG indices.

RBI's MPC voted unanimously to leave the policy repo rate unchanged at 4% as expected and continues to maintain accommodative stance. Given the uncertainty circling around economic impacts of the second wave - the rates will be kept low as long as it is required, and they are not thinking about normalising the unconventionally easy policy right now.

Technically, while the Nifty has corrected today, the intermediate uptrend remains intact. We expect the Nifty to gradually move higher towards new life highs in the coming sessions. Immediate supports to watch for weakness are at 15622-15611.

Source : Equity Bulls

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