June 6th 2024 Stock Market analysis

Markets Rally for Second Day Ahead of RBI Policy Decision

Indian stock markets ended positively for the second consecutive session as the BJP-led NDA secured a third consecutive term. Global stocks also rose on expectations of a US rate cut and sustained growth in artificial intelligence. At closing, the Sensex surged by 0.93 percent or 692.27 points to reach 75,074.51, while the Nifty index closed at 22,821.40, up by 0.89 percent or 201 points. In broader indices, the BSE MidCap rose by 2.3 percent, and the BSE SmallCap saw a jump of 3.06 percent. Among sectoral indices, the BSE Realty led with a gain of 4.85 percent, followed by the BSE Industrials and Capital Goods indices, which jumped over 3.7 percent and 3.4 percent, respectively. Other gainers included the Oil & Gas, Power, Telecommunication, and IT sectors, each up by over 2.5 percent.

Investors are now awaiting the Reserve Bank of India's bi-monthly policy announcement due on June 7. Analysts expect the central bank to maintain the status quo for the eighth consecutive time, keeping interest rates unchanged at 6.5 percent, which would make the policy decision a non-event for the markets.

Technical Outlook on 7th June

The Nifty is likely to find immediate support around 22,688, with further support at 22,555. Resistance levels are expected at 22,934 and 23,087. Currently, the Nifty is experiencing mixed and volatile trading.

Similarly, the Bank Nifty is expected to find immediate support near 48,908, with additional support at 48,525. Resistance levels are anticipated at 49,674 and 50,057. Like the Nifty, the Bank Nifty is also trading in a mixed and volatile manner.

Derivative Outlook on 7th June

PCR Analysis: Nifty PCR-OI has increased with nifty has   positive which shows PUT WRITING.

Open Interest Analysis: Nifty future June contract OI has increased with positive close which shows Long Buildup.

Cost of Carry Analysis: Nifty June month contract has ended in high compare with July contract and high range compare with previous sessions which indicates an positive bias.

India VIX Analysis: India VIX has closed at 16.8 vs 18.89 (DoD) basis which shows decreased in volatility.

Zee Board Approves ₹2,000 Crore Fundraising; Stock Soars 5%

On Thursday, the Board of ZEE granted in-principle approval to raise up to ₹2,000 crore through the issuance of equity shares or other eligible securities, to be conducted in one or more tranches. "The Board of Directors, at its meeting held today, considered and gave its in-principle approval for raising funds by way of issuance of equity shares or any other eligible securities, provided that the aggregate amount shall not exceed ₹2,000 crore," the company stated in a filing. Consequently, Zee Entertainment's share price surged by 5.71 percent, closing at ₹154.65 on June 6, up from the previous close of ₹146.30. The fundraising options include, but are not limited to, private placement, QIP, preferential issue, or a combination of methods.

This proposal comes after Sony's cancellation of a $10 billion merger in January, which would have created a significant Indian TV conglomerate.

Additionally, the board has decided to closely monitor the business model and plan presented by the MD & CEO, who has outlined a roadmap to enhance the performance and efficiency of each business segment to achieve higher EBITDA.

In the recent fourth quarter, the company reported a profit of ₹13.35 crore, a significant turnaround from the loss reported a year ago, driven by strong advertising demand and reduced expenses.

‍