Taking Stock: Profit-booking wipes out gains, Nifty holds 10,150; over 80 stocks at 52-week high

Investors booked profits as both the Sensex and the Nifty50 traded near crucial resistance levels. The S&P BSE Sensex fell over 500 points from its intraday high of 34,927 while the Nifty50 closed below 10,200 levels on June 8.

The Sensex ended the day 83 points higher at 34,370, while the Nifty50 closed with gains of 25 points to 10,167.

“Domestic markets succumbed to profit-booking after opening higher, mirroring firm cues from other global markets after a surprise surge in US employment fanned optimism over the economic recovery from coronavirus pandemic,” Paras Bothra, president, Equity Research, Ashika Stock Broking, said.

“Opening of shopping malls, hotels, and restaurants situated outside containment zones from today also led to optimism.”

Sectorally, action was seen in oil & gas, public sector, IT, consumer durables, and the Bankex while profit-taking was visible in healthcare, auto, metals and consumer discretionary.

The Nifty Bank dropped 620 points from the high of 21,807 and finally closed with gains of 153 points at 21,187.

Equity mutual funds inflows fell for the second straight month. The net inflows into equity and equity-linked schemes declined 15 percent over the previous month to Rs 5,256 crore in May, according to data released by AMFI.

Top Nifty gainers included Axis Bank, BPCL, IndusInd Bank and GAIL India, which were up more than 6 percent each.

Top Nifty losers included M&M, Eicher Motors, Shree Cements and ZEE Entertainment, which were down 3-4 percent.

Stocks & Sectors

Sectorally, the S&P BSE Oil & Gas index was up 2.7 percent, followed by the S&P BSE Public Sector that rose 2 percent and the S&P BSE IT gained 1.6 percent.

Profit-taking was visible in Healthcare that fell 0.89 percent followed by the S&P BSE Metal Index, which fell 0.56 percent and the auto index was down 0.33 percent.

A volume spike of more than 100 percent was seen in stocks like Page Industries, JustDial, GAIL India and Exide Industries.

Long Buildup was seen in stocks like Indiabulls Housing Finance, Chola Finance, JustDial and Titan Company Ltd.

Short Buildup was seen in stocks like Exide Industries, SAIL, Motherson Sumi, and PVR.

GMM Pfaudler, AstraZeneca, PI Industries, RIL, Torrent Power and Ruchi Soya were among more than 80 stocks that hit a 52-week high on the BSE.

Stocks in news

In the aviation space, SpiceJet surged 10 percent while Indigo slipped 6 percent.

Vodafone Idea continued to move higher to double in a week.

Indiabulls gains more than 14 percent to close at a three-month high.

AstraZeneca was at a 52-week high with the parent company planning a merger with Gilead, whose drug has been cleared for use in the US for coronavirus patients. The stock closed with gains of nearly 6 percent.

Abbott slipped 3 percent after reporting weak March quarter earnings year-on-year.

Exide Industries cracked over 8 percent after the company reported a 20 percent year-on-year decline in its net profit for the March quarter of FY20.

IndusInd Bank jumped more than 7 percent after promoters said they would buy additional shares from the open market.

Technical View

The Nifty failed to hold on to 100-DMA placed at 10,299 as it slipped 161 points from the highs and formed a bearish candle on daily charts.

The price behaviour is hinting at exhaustion in the current leg of the upswing.

“In the next trading session, if it slips below 10,120 levels, then the Nifty can come under selling pressure on intraday basis, with targets close to 9,944 levels. However, a close below 9,944 can confirm weakness, thereby ushering in a fresh leg of a downswing,” says Mazhar Mohammad of Chartviewindia.in.

“A strong close beyond 10,330 can extend the lifeline for the bulls, with targets close to 10,750. For the time traders are advised to remain neutral on long side, whereas intraday shorting opportunity shall arise below 10,120 with a target placed in the zone of 10k-9,550 levels,” he said.

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