Things to know before trading in 11th June


Indian market ended with mild gains with a tug of war between the bulls and bears. The headline index was lifted by tech stocks and was in line with global market trend. Stocks in Asia and Europe advanced yesterday after a deal struck between the US and Mexico to avoid a tariff war. Weak Job data from the US on Friday raised further bets on rate cut.

The NIFTY rose 52 points 0.44% to close the day at 11923. The index hovered between 11975 and 11871 and settled as Doji showing indecisiveness in the market.

Sectoral indices traded mixed on NSE with Nifty IT and Nifty FMCG rose over 1% while Nifty Media and Nifty PSU Bank indices were the top drags, both down over 1.5%

In the broader market, the NSE 500 rose 0.31% with advance decline ratio was 2.18: 2.79. NIFTY small cap dropped 0.52% while the mid cap was up marginal 0.5%.

In overnight market, US Dow Jones index gained 0.3% at close erasing some gains seen in the opening session. However, it was 6th straight session of gains yesterday. The UK FTSE closed up 0.59% and German DAX rose 0.77%.

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Positive news from the Brexit front boost the Global and…

Data showed the UK economy shrank 0.4% in April as Brexit paralysis took hold following the proposed deadline for departure from the EU. The National Institute of Economic and Social Research (NIESR) said the UK is now on course for a “marked slowdown” in the second quarter of 2019. The economy is now expected to shrink by 0.2 per cent, NIESR said. From US, there was no major data release yesterday

In Asia today, the Japanese NIKKEI advanced 0.35% and Hang Seng rose 0.78% with ease in global risk off sentiment. Asian market was also encouraged by Chinese data. China today reported that its exports grew 1.1% in May beating market expectation of a 3.8% decline and country’s imports slid 8.5% from a year earlier.

The SGX NIFTY, traded slightly positive indicating a flat opening today. The NIFTY Index has support at 11870 levels and if the level is breached then we may see corrective activity. The resistance is seen at 11975 levels today.

In commodities, priced dropped overnight on demand concern despite a rally in other asset classes on risk appetite. The US WTI Crude oil future dropped from $54.55 to $53.05 overnight to settle at $53.33. In Asia, it traded at $53.49, at the time of writing.

Gold futures corrected marginally however the sentiment remains positive in the coming days on rate cut hope. The COMEX gold is trading at $1333, in Asia at the time of writing. On break of $1347, prices may resume upside and one can look for buy on correction as short term strategy on the counter.

Disclaimer: represents Bitupan Majumdar which is an independent research analyst with SEBI RA registration code INH300006962. The report is distributed as per SEBI (Research Analysts) Regulations 2014. This report does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 includes Financial Instruments and Currency Derivatives. The information contained herein is from publicly available data or other sources believed to be reliable. This report is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this report should make such investigation as it deems necessary to arrive at an independent evaluation of an investment in Securities referred to in this document (including the merits and risks involved), and should consult his own advisors to determine the merits and risks of such investment. The investment discussed or views expressed may not be suitable for all investors. This information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose.


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