D-St erases gains ahead of PM address; Nifty hold 10,300

Weak global cues and a rise in coronavirus cases across the world capped the upside for Indian markets. The S&P BSE Sensex pared intraday gains and closed in the red while the Nifty50 managed to hold above the crucial 10,300 levels.

The Sensex fell 45 points to close at 34,915 while the Nifty50 ended 10 points lower at 10,302.

Weak global cues and extension of lockdown in some states weighed on sentiment. The Nifty50 has to hold above 10,333 for upside to continue towards 10400-10500 levels.

“Despite trading positive for the most part of the day, the benchmark indices gave up gains and ended flat with a negative bias. The markets were impacted by the uncertainties surrounding PM’s address to the nation,” Vinod Nair, Head of Research at Geojit Financial Services told .

“Irrespective of this, many Indian cities are extending their lockdowns in the face of unabated growth in virus infections, which has added to the uncertainty surrounding the economic recovery. The market direction for tomorrow may also largely be guided by the content of the PM’s address and global cues.”

Sectorally, the action was seen in auto, consumer discretionary, FMCG, banks and capital goods stocks while profit-taking was visible in oil and gas, energy, telecom, and healthcare stocks.

On the broader markets front, the S&P BSE Midcap index was down 0.14 percent while the S&P BSE Smallcap index closed with losses of 0.7 percent.

Top Nifty gainers included Britannia Industries, ICICI Bank, Nestle India, and Shree Cements.

Top Nifty losers included Sun Pharma, Power Grid, IOC, and BPCL.

Stocks & Sectors

Sectorally, the S&P BSE Auto index rose 1 percent, followed by the S&P BSE Consumer Discretionary index that rose 0.19 percent, and the FMCG index was up 0.18 percent.

Selling pressure was seen in the S&P Oil & Gas index that fell 1.5 percent, followed by the S&P BSE Energy index was down 1.3 percent, and the S&P BSE Telecom index was down 1.2 percent.

A volume spike of more than 100 percent was seen in stocks like PFC, SAIL, ACC, Tata Steel, SBI Life and Petronet LNG.

Long buildup was seen in stocks like BEL, Jindal Steel, Balkrishna Industries and SAIL.

Short Buildup was seen in stocks like Petronet LNG, HPCL, and Ashok Leyland.

AstraZeneca, Aarti Drugs, Escorts, Tata Communications and Best Agrolife were among more than 100 stocks on the BSE to hit a 52-week high.

Stocks in news

Shares of Glenmark Pharma fell 3 percent after global brokerage CLSA downgraded the stock to sell after Q4 earnings.

Shares of state-owned Housing & Urban Development Corporation jumped 4 percent on June 30 after the company reported a 86.6 percent year-on-year growth in consolidated profit at Rs 440.9 crore for the quarter ended March 2020.

Bharat Dynamics share price jumped over 10 percent after the company reported a 149.51 percent surge in net profit at Rs 309.72 crore in Q4 FY20 over Q4 FY19.

Steel Strips Wheels share price jumped more than 3 percent after the company bagged fresh export orders for Truck & Caravan Trailer Market from the US.

Tata Steel share rose by about 2 percent in the early trade on June 30 after the company reported its March quarter earnings.

Dabur India shares closed with moderate gains after rising 1.8 percent intraday on Motilal Oswal upgrading the stock to “buy”.

Shares of MRF climbed over 3 percent, a day after the company posted over a two-fold surge in consolidated net profit to Rs 679.02 crore for the fourth quarter ended March 31.

Emami surged 6 percent despite the company reporting a 58 percent year-on-year decline in consolidated profit at Rs 23 crore for the quarter ended March 202.,

Technical View:

The Nifty formed a bearish candle on the daily chart. It closed below 5-day EMA.

The index has been moving in a rising channel on the daily scale. It has been moving in between the 10,200 and 10,400 zones for the last four trading sessions, where dips are being bought but follow up is missing.

The index now has to hold above 10,333 zones to witness an up move towards 10,400 then 10555 zones while on the downside, immediate support is seen at 10,200-10,180 zone, Chandan Taparia, of Motilal Oswal Financial Services Limited said.