8th June 2023, Mumbai: The stock market witnessed a reversal on the downside, as indicated by the Nifty charts. Analysts have identified a short-term reversal pattern with an upper shadow on the daily chart. To observe an upward movement, the Nifty needs to cross and sustain above the 18,666 zones, targeting 18,786 and 18,888 zones. On the downside, there is support at 18,580 and 18,530 zones, according to Chandan Taparia of Motilal Oswal. Options data suggests a broader trading range between 18,450 and 18,900 zones, with an immediate range of 18,550 to 18,800 zones.
In international markets, the S&P 500 and Nasdaq opened slightly higher as Treasury yields slipped. This followed the release of data showing a higher-than-expected increase in weekly jobless claims, which eased concerns about further interest rate hikes. The Dow Jones Industrial Average fell slightly at the opening, while the S&P 500 and Nasdaq Composite showed modest gains.
In corporate news, the Canada Pension Fund plans to sell a partial stake of about 1.6% in Kotak Mahindra Bank through block deals. The fund will offer approximately 3.3 crore shares at a price range of Rs 1,792-1,886, with the lower end of the floor price representing a 5% discount. The Canada Pension Fund currently holds a 4.6% stake in the bank.
The Initial Public Offering (IPO) of IKIO Lighting, a leading LED lighting solution provider, saw strong demand on the last day of subscription. The IPO received bids for over 66 times the number of shares on offer, primarily driven by institutional buyers. The Qualified Institutional Buyers category was subscribed over 163 times, while non-institutional investors and Retail Individual Investors (RIIs) subscribed by 63.35 times and 13.86 times, respectively.
In a move to boost the growth of the corporate bond market, the Securities and Exchange Board of India (Sebi) has permitted mutual funds to invest in repo transactions involving securities like Commercial Papers and Certificate of Deposits. However, mutual funds can only participate in repo transactions with corporate debt securities rated “AA” and above, as stated in a circular issued by the regulator.Looking at the technical analysis, the Nifty formed a red candle with an upper shadow on the daily chart, indicating a potential short-term reversal on the downside. To confirm an upward movement, the Nifty needs to cross and sustain above the 18,666 zones, targeting 18,786 and 18,888 zones. On the downside, support levels are observed at 18,580 and 18,530 zones, according to Chandan Taparia of Motilal Oswal. Options data suggests a broader trading range between 18,450 and 18,900 zones, with an immediate range between 18,550 and 18,800 zones.
At the close, the Sensex recorded a decline of 294.32 points or 0.47%, settling at 62,848.64. Similarly, the Nifty was down by 91.90 points or 0.49%, ending at 18,634.50. Among the top losers on the Nifty were Grasim Industries, Kotak Mahindra Bank, Sun Pharma, Tech Mahindra, and Apollo Hospitals. On the other hand, NTPC, JSW Steel, ONGC, Power Grid Corp, and Larsen and Toubro were among the gainers. With the exception of power and capital goods sectors, all other sectoral indices closed in the red. The BSE midcap and smallcap indices both declined by 0.5 percent.