The Indian equity market extended its gains from the previous session and ended higher on June 5, with the Nifty closing around 18,600 supported by buying across sectors, barring FMCG and IT. At close, the Sensex was up 240.36 points or 0.38 percent at 62,787.47, and the Nifty was up 59.70 points or 0.32 percent at 18,593.80. On the back of supportive global cues, the market started on a stronger note and pushed the Nifty index closer to 18,650. However, last-hour selling has erased some of the intraday gains. Stocks and sectors Mahindra & Mahindra, Axis Bank, Tata Motors, Larsen & Toubro and Grasim Industries were the biggest gainers on the Nifty. Losers were Divis Laboratories, Tech Mahindra, Asian Paints, Nestle India and BPCL. On the sectoral front, auto and capital goods indices rose 1 percent each, while some selling was seen in the information technology and FMCG names. The BSE midcap index gained 0.3 percent and smallcap index rose 0.5 percent. A long build-up was seen in Hindustan Aeronautics, Mahindra and Mahindra and Zee Entertainment Enterprises, while a short build-up was seen in AU Small Finance Bank, Aditya Birla Capital and Manappuram Finance. Among individual stocks, a volume spike of more than 300 percent was seen in Crompton Greaves Consumer Electrical, Tata Chemicals and Zee Entertainment Enterprises. More than 200 stocks touched their 52-week high on the BSE, including Minda Corporation, Star Cement, PNB Housing Finance, Saksoft, Mahindra & Mahindra Financial Services, Indusind Bank, HBL Power Systems and Arvind. Outlook for June 6 Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Optimism in global equities aided the local market sentiment. Also, the end to the US debt ceiling uncertainty and expectations of a rate hike pause by the US Fed provided some fodder to the struggling markets. Banking, financial & other rate-sensitive stocks may witness sharp movements ahead of the RBI’s credit policy later this week. Technically, on daily charts, the Nifty has formed a small bearish candle which indicates indecisiveness between the bulls and bears. As long as the index is trading above 18,550 the positive sentiment is likely to continue. Above the same, the index could rally till 18,650-18,700. On the flip side, below 18,550, the selling pressure is likely to accelerate, below which, the index could slip till 18,500-18,450. Prashanth Tapse, Senior VP (Research), Mehta Equities Today's trading session saw a significant surge in the Nifty, driven by hopes of a dovish stance from the Federal Reserve during the upcoming June 14 FOMC meeting. This positive sentiment led to a new uptrend on Dalal Street. Looking ahead, the key support level to monitor for the Nifty is at 18,417, while major obstacles lie at 18,664. If the Nifty surpasses the 18,664 mark, it could trigger a larger rebound towards its all-time high of 18,888. These developments indicate a positive sentiment in the market, with investors eagerly awaiting the outcome of the FOMC meeting and keeping a close eye on key support and resistance levels for further market direction. Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Taking Stock: Nifty ends near 18,600; Sensex gains 241 points; auto, capital goods shine - Moneycontrol
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