Prior to Wednesday, June 19, 2024’s opening bell, the following stock market update: The record-breaking run by the BSE Sensex and the NSE Nifty is probably going to continue on Wednesday following a technical breakout on the charts and encouraging global cues.
Gift Nifty futures quoted at 23,659 levels at 7:00 AM, suggesting a probable gap-up of about 70 points or so on the Nifty 50 index.
In June, the Nifty has risen more than 1,000 points and reached a record high of 23,579.
worldwide attitude
The US equities market closed higher overnight, with the NASDAQ recording its sixth consecutive record close. This came as US retail sales started to increase again, though they fell short of analysts’ forecasts. At the close, the Dow Jones, NASDAQ, and S&P 500 all saw increases of up to 0.3%.
At 4.219 percent, the yield on US 10-year bonds decreased. In terms of commodities, Brent Crude Oil crossed the $85 per barrel mark, while Gold futures surged back beyond $2,340 per ounce.
The majority of markets in the Asia-Pacific area were higher. Taiwan and Kospi increased by about 1% apiece, and Japan’s Nikkei gained 0.5%. On the other hand, the S&P ASX 200 and All Ordinaries, the benchmark indices for Australian equities, were flat.
Actions related to fund flow
On Tuesday, domestic institutional investors (DIIs) net bought shares worth Rs 1,556 crore, while foreign institutional investors (FIIs) net bought equities worth Rs 2,569 crore.
FIIs increased their net long positions in index futures by over 11,563 contracts in the derivatives market. At 0.95, the index long-short ratio increased.
On the other hand, retail investors’ net index short positions are at their highest point in the past two months.
Trading plan for June 19, Wednesday: Now, should you be a seller or a buyer? Here’s what industry insiders advise:
Ashwin Ramani works for SAMCO Securities as a technical and derivatives analyst.
In Nifty, call writers (Bears) were seen leaving and writing at the 23,400 and 23,500 Strike. After failing to close over the 23,500 barrier in the previous two trading sessions, the Nifty was able to close above it this time. At the 23,500 strike, the bulls (Put Writers) have followed the call writers’ example, and the option activity at this strike will give clues about the future path of the Nifty.
Over the previous five trading sessions, the 50,250 level had been a powerful resistance level that the Bank Nifty broke over. The big up surge in the Index was driven by call writers (Bears) leaving and putting in during the 50,000 and 50,200 Strike. The option action at the 50,500 strike, where the call writers have sizable positions, will give indications regarding the direction of Bank Nifty’s intraday movement on Wednesday.
Om Mehra, SAMCO Securities Technical Analyst
After rising to a record high of 23,579.05, the Nifty steadied throughout the day. As it continued to show higher highs and higher lows in the hourly chart, the Nifty once more produced a doji candle on the daily timescale, indicating a positive outlook.
Support is still at 23,300, but a significant resistance level is the daily upper Bollinger Band, which is currently at 23,770. The Nifty is still trading in a rising parallel channel, and the main trend is still bullish as long as the 23,300 mark is not broken.
Finally, on June 10, 2024, the Bank Nifty broke beyond the resistance level of 50,253. Positive momentum is shown by the Bank Nifty’s trading above its short-term moving average. At 50,000, the support level corresponds to the 78.6% Fibonacci retracement level. 51,133.20, the all-time high attained on June 3, 2024, is the location of the immediate resistance. Reaching greater heights might be possible if this resistance is broken.
Asit C. Mehta Investment Intermediates’ AVP of Technical and Derivatives Research, Hrishikesh Yedve
Technically, the Nifty exited a consolidation zone between 23,000 and 23,500, which gave rise to new momentum. The increase may reach levels between 23,700 and 23,800 in the near future. The Nifty’s immediate support on the downside is located around 23,400, with the previous week’s low of 23,200 coming next.
The Bank Nifty has broken above the short-term consolidation range of 49,530–50,250, demonstrating strength. This breakout suggests that the index might test the 50,800–51,000 range. The immediate support on the downside is close to the 50,000 mark.
Senior Technical Analyst at LKP Securities, Rupak De
On the daily chart, the Nifty had another day of little movement on Tuesday. Nifty has been fluctuating sideways within a day for the past few days, but it has now risen beyond 23,500. From here, the trend appears to be improving, with 23,300 acting as support. A decline down below 23,300 could lead to pressure to sell. The index may rise to 23,800 on the top end.
stocks to keep an eye on
Rohit Gupta, the chief financial officer of Zed Entertainment, has resigned for personal reasons. Veteran Mukund Galgali is the acting CFO for Zed.
Stocks under F&O ban: As of June 19, there are seven stocks that are prohibited from trading: Balrampur Chini, GNFC, Hindustan Copper, India Cement, Piramal Enterprises, SAIL, and Sun TV.