In intraday trade, the 30-share BSE Sensex rose 1,720.8 points, or 2.29 percent, to a new record high of 76,795.31. The benchmark closed up 1,618.85 points or 2.16 percent at a high of 76,693.36.

The NSE Nifty gained 498.8 points, or 2.18 percent, to 23,320.20 throughout the day, just 18.5 points behind the record intraday high. The index rose 468.75 points (2.05%) to close at a high of 23,290.15.

Expectations of stability within the coalition government at the Centre, along with the RBI’s FY25 growth forecast to 7.2 per cent, fueled a broad-based rally in the domestic market, according to Vinod Nair, head of research at Geojit Financial Services. The air . The Indian market hit a new high, eclipsing its previous record set on the day of the exit poll. Although the last mile of the inflation target is difficult, investors expect the MPC to take a step forward in a period of easing.

Also Read: Sensex, Nifty 50 settle at fresh closing highs; 5 Key Factors That Driven the Market Today

The US labor market added more jobs than expected in May, defying earlier warnings of an economic slowdown. The labor market added 272,000 nonfarm payroll positions in May, well above forecasts for 180,000, according to data released Friday by the Bureau of Labor Statistics. According to market experts, this could lead to a Fed interest rate cut in the near future, which would lower the market and strengthen the dollar.

The market outlook will be determined by key domestic and global economic data. According to Arvinder Singh Nanda, senior vice-president at Master Capital Services Ltd, next week’s market will be guided by Indian WPI inflation, China’s CPI inflation, UK GDP data, US core CPI and CPI. PI data, USPPI data, and the US Fed. Interest rate decision

Also Read: Dividend Stocks: Tata Motors, HUL, Adani Ent, Bajaj Auto, among others will trade ex-dividend next week. Full list here

Market Outlook by Dharmesh Shah, Vice President, ICICI Securities

The Nifty 50 started a spectacular recovery from the 200-day EMA (after witnessing a knee-jerk reaction after the general elections), highlighting the inherent strength. As a result, the weekly price action formed a short-bodied bear candle with a long lower shadow, highlighting increasing buying demand. An important point to highlight is that the India VIX, which gauges market sentiment, fell sharply by 32% to close at a three-week low, indicating that the market is Participants now expect less risk.

The Nifty 50 has recovered 10% from the weekly lows in just three sessions and recorded its highest ever weekly close. Going forward, the durability above 23,400 will pave the way towards 23,800 in the coming weeks. Failure to do so will lead to higher base formation amid stock-specific action in the 23,400-22,600 range. Therefore, any temporary breather from here should be capitalized as an additional buying opportunity with immediate support placed at 22,600. Our positive bias is based on the following observations:

• A) Bank Nifty has rebounded strongly from its 52-week ema, maintaining its two-year rhythm, and is expected to move towards 51,000.

• B) The global setup remains strong and acts as a tailwind, with the prospect of a rate cut now on the horizon.

• C) Brent prices are trending higher and are expected to remain in the $75-85 range for an extended period.

Structurally, a high peak and trough formation indicates a strong price structure that forces us to revise the support base at 22,600 as it is the confluence of:

• A) The 20-day EMA is placed at 22,650.

• b) 38.2% retracement of current up move 21,281-23,320, placed at 22,540

On the Bank Nifty front, we expect it to move towards 51,000 in the coming weeks, while strong support remains at 48,800.

Also Read: Tech Stock Picks: Vaishali Parekh Recommends Buy These Two Stocks, More Than 15% Possible Upside on TP

Top Stock Recommendations:

Shop the Larsen & Toubro range. 3,440-3,535 for a target of with a stop loss of 3,870 3,280.

Buy Access Bank in the range of 1,166- 1,188 for a target of with a stop loss of 1,270 1,118.

Also Read: Expert View: Nifty 50 potential upside move above 23,300 could lead to 23,800, says MK Global’s Kapil Shah

Disclaimer: The views and recommendations given above are those of individual analysts, experts and broking companies and not of Minutes. We advise investors to consult certified experts before making any investment decision.

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Published: 09 Jun 2024, 12:51 PM IST



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