Published on 20/06/2019 5:20:45 PM | Source: HDFC Securities Ltd

Market Closing Quote by Deepak Jasani, HDFC securities 20 June 2019

Posted in Market Outlook| #Market Outlook #HDFC Securities

Now Get news on WhatsApp. Click Here To Know More

Below is the Views On Market Closing Quote by Deepak Jasani, Head of Retail Research, HDFC securities

Markets rallied sharply on Thursday after the recent range bound price action. The gains came on the back of positive global cues as a dovish US Federal Reserve opened the door to further rate cuts. The Nifty index ended 140.3 points or 1.2% higher at 11,831.75. Broad market indices like the BSE Mid Cap index gained more, thereby outperforming the Sensex/Nifty. Market breadth was positive on the BSE/NSE.

Advance decline ratio came back to positive on the NSE for the first time in almost 4 weeks (since May 28). This is more a reflection of return of positive mood among traders even as the recently beaten down stocks bounced up sharply due to short covering/halt of selling pressure. While the broader market may continue to rally (albeit at a slower pace) the frontline indices may see a much slower rise over the next few days.

Sectorally, the top  gainers were the BSE Auto, Capital Goods, Healthcare and Telecom indices. There were no losers.

Major Asian markets have closed on a positive note with China-Hongkong markets standing out. European indices like FTSE, DAX and CAC are trading in the green. European stocks surged to six-week highs on Thursday, as investors piled into riskier assets after the U.S. Federal Reserve joined the  growing number of major central banks signalling that a new round of monetary stimulus was likely.

World stock markets rose on Thursday after the U.S. Federal Reserve signalled it was likely to cut interest rates next month, and the dollar and benchmark bond yields fell to multi-year lows.

The Bank of Japan left rates unchanged on Thursday but stressed that global risks were rising, suggesting it was leaning towards boosting monetary support. Norway's central bank raised rates, as expected

Oil  prices  jumped amid escalating tensions in the Middle East as a US official said one of the country’s military drones was shot down by an Iranian missile.

Technically, with the Nifty bouncing back sharply and closing above the previous session’s highs, the bulls seem to have made a comeback. Further upsides are likely once the immediate resistance of 11843 is taken out. In such a case 11914 could act as a resistance. Crucial supports to watch for any weakness are at 11802-11707.


HDFC Securities Limited (HSL) is a SEBI Registered Research Analyst having registration no. INH000002475


Views express by all participants are for information & acadamic purpose only. Kindly read disclaimer before refering below views. Click Here For Disclaimer