Prognosis for the Sensex, Nifty, and Nifty Bank for June 26: Tuesday’s activity saw benchmark indices reach all-time highs, driven by strong buying of shares in private banks. At 78,165, the S&P BSE Sensex, 23,754 for the Nifty, and 52,747 for the Bank Nifty all reached record highs.
On a daily basis, it appears that the Nifty 50 index is headed towards testing the resistance of its super trend line at 23,850 levels. The weekly chart, however, indicates that as long as the index is over 23,600 levels, the near-term trend is probably going to stay positive.
In the meantime, on Tuesday the BSE Sensex clears a significant annual Fibonacci barrier. In the coming year, the BSE benchmark index may aim to reach levels between 79,940 and 81,750. The Sensex is predicted to fluctuate between 77,620 and 78,490 on Wednesday; interim support is anticipated to be located between 77,785 and 77,700, while resistance is likely to be found between 78,320 and 78,400.
Trading activity of FIIs in F&O
For the twelfth consecutive trading session, FIIs net bought index futures in the derivatives category. For an investment of Rs 2,698.63 crore, FIIs added 39,108 net longs in index futures on Tuesday. FIIs purchased a significant amount of Nifty and Bank futures contracts (18,991 and 19,459, respectively).
Consequently, the long-short ratio of FIIs index futures surged to 1.59, with net index longs standing at 61.45 percent and index shorts at 38.55 percent.
Conversely, net short positions in index futures were held by DIIs (Domestic Institutional Investors) and individual investors, at 62.05 and 57.49 percent, respectively.
Trading plan for June 26, Wednesday: Is it better to purchase or sell stocks now? Here’s what industry insiders advise:
Ashwin Ramani works for SAMCO Securities as a technical and derivatives analyst.
Tuesday’s consistent intraday increase in the Nifty was driven by call writers (Bears) who left the market at the 23,500 Strike and aggressive put writers who entered the market at the 23,600. At the 23,700 strike, the put writers, the Bulls, have 1.50 lakh contracts, while the call writers, the Bears, have 1.87 lakh contracts. The option activity at this strike will give clues about the future direction of Nifty.
The significant up move in the Bank Nifty yesterday was caused by call writers (Bears) leaving and putting writing on all strikes from 51,000 to 52,000. The Bank Nifty’s resistance now moves to 53,000, and the option activity at this strike will give clues about the way the Bank Nifty will go in the future.
Om Mehra, SAMCO Securities Technical Analyst
The Nifty overcame the psychological 23,700 barrier and broke beyond the critical 23,670 resistance. Three inside-up patterns on the Nifty show bullish momentum. Nifty continued to rise without even retracing to the 23.6% mark, underscoring the index’s extremely optimistic view.
At 52,746.50, the Bank Nifty reached a new all-time high. On the daily period, this upward movement validates a breakout from the loudhailer pattern. The beginning and low levels of the session were nearly identical, suggesting strong purchasing interest from the outset. Since the main trend is still solidly upward, any decline into the 52,400–52,500 region would represent a buying opportunity. At 70 points, the daily Relative Strength Index (RSI) is stable.
Asit C. Mehta Investment Intermediates’ AVP of Technical and Derivatives Research, Hrishikesh Yedve
The Nifty technically broke out of the 23,330–23,670 short-term consolidation area. According to this breakout, the surge may continue up to levels of 24,000. 23,670 will provide the index with instant support if it falls.
Strength may be seen in the Bank Nifty’s crossing of the short-term trend line resistance and persistence above the 52,000 barrier. Thus, the buy-on-dips approach should be used as long as the index remains above 52,000 levels. 53,000 will serve as an instant barrier for the Bank Nifty on the higher end.
Senior Technical Analyst at LKP Securities, Rupak De
The Nifty shown strength in the face of global slowdown by rising above 23,700 to reach a new all-time high of 23,754. The PCR increased at 23,600 and 23,700 as put writers were quite active while call writers unwound their positions. As long as it continues over 23,500, the trend may continue to be robust in the near term. On the plus side, the Nifty may soon keep heading in the direction of 24,000.
Senior Technical and Derivative Analyst at LKP Securities, Kunal Shah
The largest open interest was built up on the call side at 52,000, the resistance level that the Bank Nifty index broke above. On the daily chart, the index is still trading in a robust uptrend, maintaining higher highs and higher lows. around 52,000, there is now support, and intraday falls should be seen as a chance to purchase with goals around 53,000/53,500.