Below is the Views On daily markets note by Mr. Deepak Jasani, Head Retail Research, HDFC securities
Indian markets continued to surge higher on Wednesday as the Nifty broke out of its recent trading range. Index heavyweight Reliance contributed to the rise as the Nifty ended just below the 12,000 level. The Nifty gained 59 points or 0.49% to close at 11,999.1. S&P BSE Sensex ended at record high.
PSU stocks including Shipping Corporation, CONCOR, NTPC, BPCL, BEML, IOC were in focus ahead of Cabinet meeting for disinvestment. Bandhan Bank fell 1.97% to Rs 525.70. Media reports suggested that women borrower groups staged protests in Assam, seeking a ban on microfinance companies. The reports added that 18% of Bandhan Bank's assets under management are from Assam.
Broad market indices like the BSE Mid Cap and Small Cap indices gained less, thereby underperforming the Sensex/Nifty. Market breadth was negative on the BSE/NSE. Sectorally, the top gainers were the BSE Healthcare, Oil and Gas, Capital Goods and Bankex indices. The top losers were the BSE Realty, Consumer Durables and Power indices.
Shares retreated Wednesday in Europe and Asia after the U.S. Senate passed a resolution supporting human rights in Hong Kong following months of increasingly violent protests. It now goes to the House, which has already endorsed similar legislation. The resolution has added to worries over prospects for Beijing and Washington to resolve a tariff war that is hammering manufacturing in the world’s two biggest economies.
The U.S. pressure on what Beijing says is purely an internal Chinese issue could complicate efforts by President Donald Trump’s administration to forge a trade deal with Beijing, analysts said. Trump said Tuesday he was prepared to raise tariffs on Chinese exports further if an agreement cannot be reached.
European stocks fell to their lowest levels in more than two weeks on Wednesday as fresh concerns over relations between the US and China emerged.
Technically, with the Nifty surging higher, traders will need to watch if the Nifty can hold above the immediate supports of 11968-11881 for the bulls to remain in control. On upmoves 12,103 could offer resistance.
HDFC Securities Limited (HSL) is a SEBI Registered Research Analyst having registration no. INH000002475
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