Pre-market update for June 21, 2024, Friday: The BSE Sensex and NSE Nifty, two benchmark equity indices, are probably going to open today’s trading session cautiously given the conflicting signals from their international counterparts.
The manufacturing and services PMI statistics that will be issued during the day may provide guidance to the market. The minutes of the Monetary Policy Meeting that was held recently will be made public by the RBI after market hours.
At this moment, both the Sensex and the Nifty were holding gains of up to 0.6% for the week. The benchmark indices of the BSE and NSE would have gained for the third week in a row if they had finished higher.
Gift Nifty futures quoted at 23,590 levels at 7:00 AM, suggesting that trade on the Nifty 50 index will likely begin the day flat to positively.
worldwide attitude
The US market gave contradictory signals; the Dow Jones concluded with a robust 0.8 percent gain, but the S&P 500 and NASDAQ pulled back from all-time high levels and ended 0.3% and 0.8% lower, respectively.
The yield on US 10-year bonds increased somewhat to 4.27 percent. In terms of commodities, Brent Crude Oil remained at about $85 per barrel while Gold futures increased to $2,375 levels.
The Asia-Pacific region’s markets opened this morning on a dull tone. The Australian benchmark indexes and Japan’s Nikkei saw little movement, but the Kospi saw a 0.80% decline.
Actions related to fund flow
On Thursday, net purchases were foreign institutional investors (FIIs) for the fourth day in a row. On June 20, domestic institutional investors (DIIs) net sold shares worth Rs 325.81 crore, while foreign institutional investors (FIIs) net bought equities worth Rs 415.30 crore.
Within the derivatives market, foreign institutional investors (FIIs) sold index options for a total of Rs 7,133.30 crore and net bought index futures for Rs 1,739.69 crore. On June 20, FIIs purchased Nifty futures for a net amount of Rs 1,426.05 crore (24,261 contracts).
Consequently, the long-short ratio of FIIs index futures reached 1.31, with 56.74 percent of index longs and 43.26 percent of short holdings.
Conversely, ordinary investors and DIIs (Domestic Institutional Investors) have increased their wagers in index futures on the short side.
Trading plan for June 21, Friday: Now, should you be a seller or a buyer? Here’s what industry insiders advise:
Asit C. Mehta Investment Intermediates’ AVP of Technical and Derivatives Research, Hrishikesh Yedve
Technically, the Nifty has created an inner bar candlestick pattern every day. Nonetheless, the index demonstrated strength by closing over 23,500 levels. The index may short-term test levels between 23,800 and 24,000 as long as it remains at 23,330. Consequently, the Nifty should be bought on dips, with support at 23,330.
Every day, the Bank Nifty has been able to hold above the prior ceiling of 51,134. 51,100–51,000 will therefore provide the index with immediate support. In the immediate run, Bank Nifty may challenge the 52,000–52,500 levels as long as it maintains the 51,000 levels.
Senior Technical and Derivative Analyst at LKP Securities, Kunal Shah
The Nifty stayed between 23,400 and 23,650 as the market steadied inside a range. As long as the index holds above the 23,400 support level, where aggressive put writing is evident, the undertone will stay optimistic. Reaching the 23,650 barrier will allow for more space to be available in the 23,800–24,000 range.
Stocks in the Futures and Options Ban Period on Friday: The seven stocks in the F&O ban period today are Balrampur Chini, Birlasoft, GNFC, Hindustan Aeronautics, Hindustan Copper, Indus Tower, and Piramal Enterprises.