Stock market guide Jun 19: GIFT Nifty atop 23,600; Experts see more upside | News on Markets

At 07:00 AM, Gift Nifty futures quoted around 23,659 levels, indicating a likely gap-up of around 70-odd points on the Nifty 50 index.

The Nifty has rallied over 1,000 points so far in the month of June and hit a record high of 23,579.

Global mood

Overnight in the US, equity market ended higher, with NASDAQ logging its seventh straight record close after US retail sales returned to growth, but remained below economists’ expectations. The S&P 500, Dow Jones and NASDAQ ended up to 0.3 per cent higher.

The US 10-year bond yield eased to 4.219 per cent. Among commodities, Gold futures climbed back above $2,340 per ounce, while Brent Crude Oil topped the $85 per barrel.

Markets, in the Asia-Pacific region, were mostly up. Japan’s Nikkei advanced 0.5 per cent, while Kospi and Taiwan rose nearly 1 per cent each. The Australian equity benchmark indices– the S&P ASX 200 and All Ordinaries, however, traded on a flat note.

Fund flow action

Foreign institutional investors (FIIs) were net buyers of stocks to the tune of Rs 2,569 crore on Tuesday; whereas, domestic institutional investors (DIIs) net bought shares worth Rs 1,556 crore.

In the derivatives segment, FIIs added over 11,563 contracts as net longs in index futures. The index long-short ratio rose to 0.95. 

In contrast, the net index shorts by retail investors are now at the highest level in the last two months.

Trading strategy for Wednesday, June 19 – Should you be a buyer or seller today? Here’s what market experts recommend:

Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities

Call writers (Bears) exiting and put writing was observed at the 23,400 & 23,500 Strike in Nifty. The Nifty successfully closed above the 23,500 level after failing to close above the same in the previous two trading sessions. The bulls (Put Writers) have taken the lead from the call writers at the 23,500 Strike and the option activity at this strike will provide cues about Nifty’s future direction.

The Bank Nifty broke the 50,250 level, which was acting as a strong resistance since last five trading sessions. The 50,000 & 50,200 Strike saw call writers (Bears) exiting and put writing which led the strong up move in the Index. The call writers have sizeable positions at the 50,500 Strike and the option activity at this strike will provide cues about Bank Nifty’s intraday direction on Wednesday.

Om Mehra, Technical Analyst, SAMCO Securities

The Nifty surged to a new all-time high of 23,579.05 and consolidated during the day. Once again, the Nifty formed a doji candle on the daily timeframe while it continued to display higher highs and higher lows in the hourly chart, suggesting a bullish outlook.

The daily upper Bollinger Band which is currently positioned at 23,770 serves as a key resistance level, while support remains at 23,300. The Nifty continues to trade within a rising parallel channel and as long as the 23,300 is not breached, the primary trend remains bullish.

The Bank Nifty finally broke the resistance level of 50,253, made on 10 June 2024. The Bank Nifty is trading above its short-term moving average, indicating positive momentum. The support level is at 50,000, which is aligned with the 78.6 per cent Fibonacci retracement level. The immediate resistance is positioned at 51,133.20, the all-time high reached on June 3, 2024. Breaking this resistance could pave the way for new highs.

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates

Technically, the Nifty broke out of a consolidation area of 23,000-23,500, leading to fresh momentum. In the immediate term, the gain may extend to levels around 23,700 and 23,800. On the downside, the Nifty finds immediate support near 23,400 followed by last week’s low of 23,200.

The Bank Nifty has broken the short-term consolidation 49,530-50,250 and remained above it, indicating strength. According to this breakout, the index may test the levels of 50,800-51,000. On the downside, immediate support is near to 50,000 mark.

Rupak De, Senior Technical Analyst, LKP Securities

On Tuesday, the Nifty formed another day of muted movement on the daily chart. For the last few days, Nifty has been moving sideways on an intraday basis, but eventually, it has moved up above 23,500. The trend looks positive from here, with support placed at 23,300. A fall below 23,300 might induce selling pressure. On the higher end, the index might move towards 23,800.

Stocks to watch

Zee Entertainment: The media giant’s Chief Financial Officer Rohit Gupta has resigned due to personal reasons. Zee has veteran Mukund Galgali as acting CFO.

Stocks in F&O ban period: Balrampur Chini, GNFC, Hindustan Copper, India Cement, Piramal Enterprises,  SAIL and Sun TV are the seven stocks in the F&O ban period on June 19.