Markets closed in the red after a volatile session; what investors should do on Thursday

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Indian benchmark equity indices ended lower Wednesday after a volatile session, dragged by broad-based selling in metals, IT and financial stocks.

The S&P BSE Sensex closed 282.63 points or 0.54% lower at 52,306.08, while the Nifty declined 85.80 points or 0.54% to 15,687.

In broader markets, BSE MidCap and SmallCap indices closed 0.26% and 0.43% lower, respectively.

Barring Nifty Auto, all other sectoral indices on the NSE closed in the red with metal, IT, private bank and pharma indices falling the most.

Maruti Suzuki, Titan Company, Bajaj Finserv, M&M, Ultratech Cement, Hero MotoCorp, and ONGC were the top gainers in the large-cap space, while Adani Ports, Wipro, JSW Steel, Divis Labs, Shree Cement, L&T, Kotak Bank, and TCS were the top laggards.

In the mid-, and small-cap segment, PNB Housing Finance, Central Bank of India, United Breweries, Adani Enterprises, PNB Gilts, Dhanlaxmi Bank, and Indian Overseas Bank dragged the broader markets.

India Pesticides’ Rs 800 crore initial public offer sailed through on the very first day of the issue and garnered subscription of 1.29x till 5 pm. Most analysts have a subscribe rating on the IPO as they believe the issue is priced at 25.3 times FY21 earnings, which looks attractive compared to the industry’s average multiple of 47 times.

Markets will keenly watch the annual general meeting (AGM) of Reliance Industries (RIL) which is no less than a mega event for the investors of the company. RIL will conduct its 44th AGM virtually on June 24, 2021, at 2 pm. The AGM will not only sheds light on the company’s last year’s performance is also expected to reveals the company’s growth plan for the near future.

Here’s what investors should do on expiry day

Manish Shah, Founder, www.Niftytriggers.com

Nifty dropped marginally as the index struggled to move above the resistance at 15900 for second day in a row. It was a long red candle for the day as Nifty that closed at the low of the day. This shows that the underlying strength is still intact. Price action does show a loss in momentum in last couple of sessions. Nifty hits the rising moving average line and there is rising trendline that is likely to get hit around 15650-15610 area. This is going to be best area to get on board going into July series. Most likely June expiry will hold below 15800. Buying Nifty around the support at 15650-15610 could be the best opportunity to get on the long side going into the month of July. A break above 15900-15950 will eventually take Nifty higher to 16200-16300 in the weeks to come.

Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities

The market witnessed a roller coaster ride, as it opened higher but lost momentum thereafter to close at the lowest point of the day. This could be due to the monthly and quarterly F&O contracts expiry and the AGM of Reliance Industries on Thursday.

On Thursday, the markets would be in a trading range of 15800/52800 and 15550/51700 levels. Below 15670/52250, the Nifty/Sensex would quickly drop to the level of 15550/51700.

On the other hand, if the Nifty/Sensex trades above 15670/52250, then the market would move to the level of 15800/52800. One should be a level based trader.

Chandan Taparia, Motilal Oswal Financial Services