US stocks rallied on Tuesday, with the S&P 500 closing in on record levels, as President Donald Trump's comments on the United States and China restarting trade talks added to optimism over the prospect of a more accommodative Federal Reserve.
Trump said he would meet with Chinese President Xi Jinping at the G20 summit later this month, and that trade talks between the two countries would restart after a long lull.
We expect Nifty to make some attempts to gain stability and some mild technical pullback can happen. However, pullbacks, just like today, are expected to remain limited. We recommend market participants to remain highly stock specific and avoid aggressive bets on either side
- Milan Vaishnav, Technical Analyst, Gemstone Equity Research and Advisory
No technical parameter at this juncture has generated a ‘buy’ signal on lower time frame charts. Hence, if the index slips below 11,641 level in the next session, it can head to test its critical support placed around 11,591 from where some stability can be expected on the upside
- Mazhar Mohammad, Chief Strategist for Technical Research & Trading Advisory, Chartviewindia
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Nifty makes a bullish Harami on the edge of its rising window. After an unusually long bearish candle, we have seen a Bullish Harami being formed on the daily scale. Nifty was able to sustain its previous day low while the day's range was well within the previous candle. A bullish Harami is formed usually on the downside of a range which is a reversal pattern as it indicates exhaustion of the previous trend
- Mustafa Nadeem, CEO, Epic Research
Nifty formed a Small-Bodied candle at its crucial support of 50-day EMA, and has been forming lower highs and lows for past five sessions. Now it has to negate the formation of lower highs by surpassing the 11,727 mark to get some stability and bounce towards 11,761 and then 11,820 levels, while a failed attempt would mean the weakness will continue till 11,600 and 11,550 levels
We maintain our cautious stance on Indian market. The near-term movement is likely to be driven by monsoon progress (which has been delayed) as well as global indicators. The outcome of US Fed meet (scheduled for June 18-19) will be keenly watched. Moreover, crude oil prices and rupee movement amid trade tension between US- China and US-Iran conflict is likely to keep markets volatile
- Jayant Manglik, President - Retail Distribution, Religare Broking
Market ended positive supported by easing in oil prices due to concern over global growth, trade wars and uncertainties in upcoming Opec meeting. There was a hope that the weakening domestic market will be supported by fiscal and monetary measures. This hope is being tested today given continuous weak economic and monsoon data. Market will be careful during the ongoing Fed meeting which is expected to provide a dovish
- Vinod Nair, Head of Research, Geojit Financial Services
Sensex snaps 4-day losing run, rises 86 pts; Nifty at 11,692; ICICI Bank jumps 2%, Jet tanks 42%
Shares of Jet Airways dropped as much as 50 per cent in Tuesday's session after the airline's lenders decided to take it to bankruptcy courts. The scrip hit its fresh all-time low of Rs 32.25. Meanwhile, two independent directors of the company, Ashok Chawla and Sharad Sharma, resigned today from the company’s board.
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Some brokerage downgrade of consumption stocks when revival is just around the corner will give a good entry point… https://t.co/Ss30Z5fAUH
In my view, there can be 3-4% correction in the market but use it to find your opportunities.
- Devang Mehta, Centrum
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HDFC might lose half its annual profit or two-thirds of its profit but at the same time they will be able to build a moat around it because this is something which few other AMCs can do. That apart, mutual fund is a reputation business and if you have to take such a thing on the way, it is okay.
- Dhirendra Kumar
Top 10 NSE gainers at around 11.15 am
Word of caution!
The hurry to pick a new theme, or the return in haste to buy a correcting theme is always going to test our patienc… https://t.co/MvjIRRSaET
Suffering their second worst fall ever, shares of HDFC Asset Management Company (HDFC AMC) plunged nearly 7 per cent to Rs 1,801.05 in Tuesday's session, after it said it will buy Rs 500 crore worth of Non-Convertible Debentures (NCDs) of the Essel Group from the debt schemes that have exposure to these securities. The sharp fall in the stock eroded its market capitalisation by over Rs 2,500 crore.
Jet Airways hits new low as airline lands in bankruptcy courts
Shares of Jet Airways hit their lower circuit limit of 10 per cent in Tuesday's session after the airline's lenders decided to take it to bankruptcy courts. The scrip hit its fresh all-time low of Rs 61.50.
Lenders led by State Bank of India have decided to take the grounded Jet Airways to bankruptcy courts after failing to stitch together a revival plan despite working on it for over five months. The petition by the lenders could be filed in the Mumbai NCLT as early as Tuesday, ET reported.
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Expectation is that the central bank could remain dovish and any hints towards rate cut by the Fed could put the greenback under pressure. Today, USDINR pair is expected to quote in the range of 69.40 and 70.05-70.20
- Motilal Oswal Financial Services
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Pre-open session: Sensex gains 100 points, Nifty above 11,700; rupee opens at 69.83 against dollar
Singapore trading hints at a positive start
Around 7am (IST), Nifty futures on the Singapore Exchange traded 11.50 points, or 0.10 per cent, higher at 11,709.50, indicating a positive start for Dalal Street.
Tech view: Nifty forms a Big Black Candle
Nifty, which had settled below its 20-day moving average (DMA) on Friday, closed marginally below its 50-DMA at 11,680 and formed a big black candle on the daily chart on Monday. The breach of the 50-DMA has led to the emergence of directional move on the downside which can drag Nifty down further into the euphoric bullish gap zone between 11,591 and 11,426 levels.
Asia stocks capped ahead of Fed
Caution crept in Asian markets ahead of the Federal Reserve’s interest rate meeting. Major Asian markets were trading with tepid gains. The Fed begins a two-day meeting later today which will conclude on Wednesday.
US stocks edge higher
US stocks edged higher ahead of Fed policy meetings as investors continue to hope that the Fed will slash interest rates. Markets across the globe are keenly observing how close the Fed could be to reducing interest rates amid the raging US-China trade war, signs of a slowdown in economy and pressure by President Trump to ease policy.
Crude oil prices flat
The benchmark Brent Crude traded flat around 7 am (IST). Oil prices had slipped on Monday as weak Chinese economic data released at the end of last week led to fears of lower global demand for the commodity.
DIIs sell Rs 151 cr worth equities
Foreign portfolio investors (FPIs) sold Rs 331.27 crore worth of domestic stocks on Monday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 1,257.86 crore.