Over 550 stocks hit new 52-week high on BSE; Adani Power, IOB, Tata Power top gainers
Rahul Sharma - Head, Technical and Derivatives Research, JM Financial Services is of the view that Nifty continues to remain bullish above 15,470 while the options data is suggesting 15,700 as the pain point for Call writers. We expect more upside if this level is crossed and we may see the Nifty testing the next resistance area of 15,900-16,000.
Indian stock market is trading at the highest level of the day as investors are eyeing PM Narendra Modi's address today at 5 pm. The Sensex ended up 274.29 points or 0.53 per cent at 52374.34 and the Nifty jumped 100.70 points or 0.64 per cent at 15771.
Among sectors, the auto index rose one per cent led by Tata Motors and TVS Motors, followed by Eicher Motors, Maruti Suzuki, Motherson Sumi Systems and Ashok Leyland, rising 3-4 per cent.
Gaurav Garg, Head of Research, Capital Via Global Research believes that the market has managed to sustain the 15700 level in the first half after a positive start in the market. Technical factors are aligned to support positive momentum in the market and reach the level of 15870-15900.
Nifty Energy also edged higher led by Tata Power, which jumped over 5 per cent, followed by GAIL India, Reliance Industries, BPCL and HPCL.
Tapan Patel- Senior Analyst (Commodities) at HDFC Securities expects crude oil to trade sideways for the day with resistance at $70 and support at $68 per barrel. MCX Crude Oil is support on June. 4980 and resistance at Rs 5120.
BSE Smallcap rose over one per cent on June 7, led by GM Breweries and Jai Bharat Maruti, with STC India, Awadh Sugar, Dalmia Bharat Sugar and Uttam Sugar rising 20 per cent each.
To help reduce India's dependence on costly oil imports, the government has extended the target date of achieving 20 per cent ethanol-blending with petrol by two years to 2023.
ICICI Securities believes that this will encourage Chinese companies to increase sugarcane juice and cereal-based ethanol capacity. In addition, it is also setting strict timelines for auto OEMs to comply with the blending requirement. The brokerage firm said in its report that this will be positive for Chinese companies.
554 stocks touched new 52-week highs on BSE, including names like Adani Power, Mazagon Dock, Indian Overseas Bank, Castrol India, Adani Ports, Tata Power among others. BHEL, PNB Housing, Ambuja Cements, Birlasoft and Tata Consumer etc.
653 stocks have hit the upper circuit on the BSE, including Adani Power, Vakrangee, PNB Housing and IIFL Finance.
According to Rahul Sharma - Head, Technical & Derivatives Research, JM Financial Services, "Nifty remains above 15,470 while options data is suggesting 15,700 as a pain point for call writers. We are likely to cross this level. Expect more upside and we can see Nifty testing the next resistance area of 15,900-16,000."
"Dips, if any, can be used as buying opportunities with intermediate support placed at 15,595," he added.
Disclosure: Reliance Industries Limited is the sole beneficiary of the Swatantra Media Trust which controls Network 18 Media & Investments Limited.
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