Friday, June 5, 2020

Nifty reclaims 10,100, but experts say wait for a breakout above 10,176

Positive global cues saw the bulls push the benchmark indices above crucial resistance levels on June 5, with the S&P BSE Sensex reclaiming 34,000 and the Nifty50 going past the crucial 10,100 level.
Globally, stocks hovered close to three-month highs as the euro hit its highest level since March 10, thanks to Europe’s stimulus boost, fuelling hopes for a global rebound, said a Reuters report.
Global investors are pricing in an economic recovery despite data showing the severe damage wrought by coronavirus lockdowns, said the report.

The Sensex ended the day 306 points higher at 34,287 while the Nifty50 rallied 113 points to close at 10,142.
For the week, the Sensex was up 5.7 percent while the Nifty closed with gains of 5.8 percent.
"Investors are banking on a global economic recovery, fuelled by central bank policy measures to support the respective economies. Investors need to be a bit cautious since valuations are running high and the expected recovery is not yet visible in the numbers."
Sectorally, the action was seen in the public sector, metals, telecom, and the Bankex, while profit-taking was visible in IT, and FMCG stocks.
The broader markets outperformed the benchmarks. The S&P BSE Midcap index rose 1.79 percent, followed by the S&P BSE Smallcap index which was up 2.5 percent.
Top Nifty gainers included SBI, Bharti Infratel and Tata Motors, which were up 7-12 percent.
Top Nifty losers included Bajaj Auto, Cipla, HUL, and TCS that were up over a  percent each.

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