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Indices close higher for 2nd week; Sensex gains 306 points, Nifty at 10,142

Barring FMCG that fell marginally and IT sector that closed flat, all other indices ended on a bullish note, with PSU Bank rising 6.8%, followed by 5.2% rise in media stocks and 3.8% gain in metal scrips

Rupa Burman Roy | June 5, 2020 | Updated 17:36 IST
Indices close higher for 2nd week; Sensex gains 306 points, Nifty at 10,142
With Nifty not triggering 10,200, it has become a crucial resistance and technical indicators suggest upward momentum for 10500 and beyond

Sensex and Nifty ended the second straight week on a bullish note on Friday in line with key Asian equities amid heavy buying in metal, media and banking stocks. Reversing yesterday's losses, Sensex ended 306 points higher at 34,287 and Nifty gained 113 points to 10,142. Sensex and Nifty have now closed higher for eight out of the nine trading sessions in the last two weeks.

Domestic markets started in green though traded volatile amid mixed global cues in early trade today as investors were cautious over the fears of the second wave of coronavirus, civil unrest in the US and rising fears of US-China trade tensions.

Experts said domestic markets gained on opening of lockdown restrictions, although prevailing uncertain market conditions amid the rising cases of the virus in domestic grounds kept trades cautious.

Barring FMCG that fell marginally and IT sector that closed flat, all other indices ended on a bullish note, with PSU Bank rising 6.8%, followed by 5.2% rise in media stocks and 3.8% gain in metal scrips.

Tata Steel, Reliance Industries, ONGC, SBI, L&T, IndusInd Bank and Sun Pharma were the top performers on Sensex pack, while Bajaj Auto, Infosys and PowerGrid were among the top laggards.

"Several small and mid-sized firms trading at ridiculous prices roared back to life today amidst all-round buying interest from Funds and HNI's," said, S Ranganathan, Head of Research at LKP Securities.

Asian indices closed higher after trading mixed this morning on back of weak trend from US markets.

Wall Street closed slightly lower, halting the recent winning streak amid increased initial jobless claims, continued civil unrest and trade tensions with China.

European markets also led the rally on Friday after European Central Bank announced a larger than expected Covid emergency stimulus program.

Expressing views over market's bullish trend, Vinod Nair- Head of Research- Geojit Financial Services said," Indian indices, led by financials, came back strongly from yesterday's indecisiveness, amid positive global cues. The global positive sentiment was driven by additional stimulus measures from ECB. Investors are banking on a global economic recovery, fuelled by central bank policy measures to support the respective economies."

Meanwhile, companies set to announce their earnings are State Bank of India, L&T, Jyothi Labs, Exide Industries, Saregama, Alkem Laboratories, Greaves Cotton, Gujarat Gas among others.

With Nifty not triggering 10,200, it has become a crucial resistance and technical indicators suggest upward momentum for 10500 and beyond.

Commenting on Nifty's near term technical outlook, Jimeet Modi, Founder & CEO, SAMCO Securities & StockNote said,"The trend on a higher time frame for Nifty is bearish and index is trading just above 20-week EMA, which may turn out to be a pullback rally. Going ahead Nifty may face strong hurdles in the zone of 10450 to 10550 which coincides with many pivotal levels such as 61.8% of the Fibonacci retracement of the recent down move."

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