New Delhi, Jul 3: The S&P BSE Sensex recovered sharply from opening lows and closed with gains of over 100 points on Tuesday while the Nifty50 witnessed a touch and go moment with 10,700 levels.
The gains remain capped as investors remained cautious ahead of a July 6 deadline when the US is set to impose tariffs on $34 billion worth of goods from China. Beijing is then expected to respond with charges of its own on US goods, reports CNBC.
Going forward, swing high of Friday’s trading session of 10,736 will act as an immediate resistance for the index while support is placed at 10,604 which was the intraday low recorded on the same day.
“Markets opened the day flat and a rally which soon ensued too the indices higher throughout the session to close at the highest point for the day. The Nifty closed with gains of over half a percent, while the bank nifty did not fare as well and closed flat for the session,” Nikhil Kamath, Co-Founder, Zerodha said.
“Pharma and IT were the best-performing stocks for the session whereas ICICI and HDFC Bank were some of the worst performers. Markets are stuck in a small range and we think this rangebound activity might continue for some more time lacking larger cues,” he said.
Kamath further added that he maintains a bearish outlook on the market at the current juncture and would not advocate entering fresh longs at this point.
For today, the S&P BSE Sensex rallied 114 points or 0.32 percent while the Nifty50 gained 42 points to close just a shade below its crucial level of 10,700 at 10,699.90.
Sectorally, the Nifty PSU Bank slipped 0.78 percent, followed by the Nifty Metal index which was down 0.37 percent, and the Nifty Bank index which slipped 0.10 percent.
The Nifty Pharma index rose 2.2 percent, followed by the Nifty IT index which gained 1.07 percent, and the Nifty Auto index was up 1.06 percent.
The Nifty Midcap index rose 1.3 percent while the Nifty Smallcap 100 index rose 0.7 percent.
Stocks in news
Tata Coffee (up 12%), Tata Global Beverages (up 6%): Tata Group stocks remained in focus after Bloomberg Quint in a report said that the Group is evaluating a proposal to integrate its food and beverage businesses into a single company, people with knowledge of the matter said.
Nifty PSU slips 0.78%: Bankers committee led by Punjab National Bank Chairman Sunil Mehta has submitted its draft report to the finance ministry with a five-pronged strategy to tackle stress in the banking sector. IDBI Bank down over 6%, followed by Oriental Bank, Canara Bank and Allahabad Bank which were down 1-2% each.
Kiri Industries share price was locked at 20 percent upper circuit at Rs 576.15 on Tuesday after the Singapore Court directed Senda to purchase company’s shareholding in DyStar and also dismissed all the claims and counterclaims against promoters.
Shares of Aban Offshore surged nearly 6 percent on the back of contract received from ONGC. The company’s step-down subsidiary Aban Singapore Pte has received a letter of award from Oil and Natural Gas Corporation (ONGC) for deployment of jack-up rig deep driller 8 for a firm period of 2 years.
Shares of NCC rose nearly 2 percent as company received new orders worth Rs 2,060.96 crore in the month of June 2018.
Stocks which remain in focus on the back of strong volumes include names like Tata Coffee, Tikyo Plast, Supreme Infra, 8K Miles, Timken, CRISIL etc. among others.
Leading stock exchange BSE will delist as many as 222 companies from tomorrow as trading in their shares has remained suspended for over six months. The move comes at a time when authorities are clamping down on shell companies — listed as well as unlisted — for being allegedly used as conduits for illicit fund flows.
On the global front, Asian stocks closed mixed as investors remained cautious ahead of a July 6 deadline when the US is set to impose tariffs on $34 billion worth of goods from China. Beijing is then expected to respond with charges of its own on US goods, reports CNBC.
China’s Shanghai Composite gained 0.4 percent while Japan’s Nikkei fell 0.12 percent and Hong Kong’s Hang Seng fell 1.4 percent.
European markets traded higher after German Chancellor Angela Merkel clinched a last-minute deal on migration, but lingering global trade concerns seem to have capped gains. France’s CAC and Germany’s DAX were up 1 percent each while Britain’s FTSE rose half a percent.