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Published on 22/06/2020 12:05:12 PM | Source: Religare Broking Ltd

Markets staged a smart comeback last week and settled with decent gains by Mr. Ajit Mishra, Religare Broking

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Below is the Views On Weekly article by Mr. Ajit Mishra, VP - Research, Religare Broking

Markets staged a smart comeback last week and settled with decent gains. The situation was tough for the first three sessions, tracking mixed local cues as the rising tension between India and China and the spike in fresh COVID-19 cases turned the participants cautious. However, a sharp surge in the index heavyweight, Reliance Industries, combined with renewed buying interest in banking and financial majors triggered a strong up move in the last two sessions. Consequently, Nifty and Sensex ended with healthy gains of 3.5% and 3.6% respectively. The broader markets too followed the market trend as both midcap and smallcap indices ended with gains of 2.6% and 3.8%.

 In the coming week, the developments on geopolitical tension between India and China will remain on participants’ radar. Besides, the scheduled expiry of the June month derivatives contract would further add to the volatility.

 On the results front, Asian Paints, Bank of Baroda, Berger Paints, Canara Bank, Gail, India Cement, and IOC will announce their numbers along with several others during the week.

 Markets may continue to trend higher but the intermediate volatility would be tough to handle. On the index front, Nifty may face immediate resistance at 10,350 and a strong hurdle around 10,550. In case of a decline, 9,950-10,050 would be crucial. By and large, almost all the sectors are contributing to the recovery so traders should focus more on stock selection.

 

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