Daily Markets - June 9, 2020 - Mr. Deepak Jasani, Head Retail Research, HDFC Securities

Indian Benchmark indices paused their winning streak and ended close to day's low level on June 09 on the back of widespread profit taking. At close, the Nifty was down 120.80 points or 1.19% at 10046.70.

Volumes continued to be high with Capital Goods, PSU and Pharma stocks doing well while Financials, Aviation, IT, Oil & Gas, Telecom and Metals stocks coming under selling pressure.

Asian stocks rallied for their ninth straight day and oil prices jumped as the lifting of coronavirus lockdowns in many countries fed investor hopes of a relatively quick global economic recovery. However at higher levels some profit taking commenced after such a great run.

European shares fell on Tuesday as declines in cyclical stocks and UK's BAT threw a spanner into a rally driven by optimism over a global recovery from the coronavirus crisis. Traders also looked for new catalysts for continuing the upmove.

Eurozone GDP fell 3.6% from the previous quarter between January and March, compared with its initial estimate of a 3.8% decline. Germany recorded a 24% monthly slump in exports in April, at the height of the coronavirus crisis. Germany's trade surplus shrank much more than expected, to €3.2bn from €12.8bn in March, as imports dropped less than exports, by 16.5%.

Technically the Nifty has failed to sustain at the intra day highs for the second consecutive day. 9889-9944 band is the next support while 10177 is the resistance. However one needs to watch the Midcap space which is still seeing some rotational buying.

Source : Equity Bulls

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