Pre-market update for June 18, 2024, a Tuesday: With encouraging signs from peers around the world, the BSE Sensex and the NSE Nifty are expected to set new records on Tuesday when they reopen for trade following an extended weekend holiday.
Gift Nifty futures quoted at 23,596 levels at 7:00 AM, suggesting a probable gap-up of more than 100 points on the Nifty 50 index.
worldwide attitude
Due to brokerage upgrades and a tech-led rise, the S&P 500 and NASDAQ closed the night at all-time highs in the US. Goldman Sachs increased its year-end target for the S&P 500 to 5,600 and Evercore ISI to 6,000, respectively.
The NASDAQ increased by 1%, while the S&P had a 0.8% increase. The Dow Jones had a 0.5% increase.
The yield on US 10-year bonds decreased to 4.27%. Among commodities, Brent Crude Oil increased to $84 per barrel, while Gold futures quoted at about $2,335 per ounce.
Asia-Pacific markets opened this morning with significant gains. The major Australian equity indices, the All Ordinaries and the S&P ASX 200, both saw increases of up to 0.8%. Japan’s Kospi increased by about 1%, while the Nikkei gained 0.7%.
Focus on Stocks
Ixigo: According to Grey Market Premium, the parent company of travel aggregator Ixigo, Le Travenues Technologies, is probably going to launch at a healthy premium of thirty to forty percent. The company’s initial public offering (IPO) received up to 98 subscriptions, with shares priced at Rs 93 each.
Auto: Given the news coverage surrounding the Hyundai IPO and the increase in car inventory, shares of auto companies are probably going to stay in the spotlight in the near future.
Stocks under F&O ban today: On June 18, six stocks—Brampur Chini, GMR Infra, Hindustan Copper, India Cement, SAIL, and Sun TV—are subject to a F&O ban.
Actions related to fund flow
On Friday, domestic institutional investors (DIIs) net bought shares worth Rs 656 crore, while foreign institutional investors (FIIs) net bought equities worth Rs 2,176 crore.
FIIs added more than 10,400 net longs in index contracts in the derivatives category. At 0.90, the index long-short ratio increased. As of May 30, the FIIs net index shorts were 87.13 percent; they are at 52.5 percent.
Tuesday, June 18, trading plan – Now, should you be a seller or a buyer? Here’s what industry insiders advise:
Vinod Nair, Geojit Financial Services’ Head of Research.
The absence of new catalysts following the US Fed’s hawkish remarks has caused a brief lull in the market’s momentum, which makes a short-term rate cut less likely.
Given that domestic investors are waiting for signals from the impending Union Budget, a near-term consolidation appears likely. A growing number of people believe that the government should prioritise welfare, which would boost consumption-led equities.
Ashwin Ramani works for SAMCO Securities as a technical and derivatives analyst.
Following three trading sessions in which it failed to close above the 23,400 level, the Nifty finally closed above it. In Nifty, strong put writing was noted near the 23,300 and 23,400 Strike. In the coming week, all eyes will be on the 23,500 Strike. The call writers have sizable positions at the 23,500 strike, and Nifty’s future direction will be inferred from the option activity during this strike.
At the 50,000 Strike on the Bank Nifty, heavy put writing was noted. In parallel, at the 50,000 Strike, the call writers (Bears) and put writers (Bulls) put up a fierce battle. Cues on the future direction of Bank Nifty will be provided by the option activity during this strike.
Senior Technical Analyst at LKP Securities, Rupak De
The Nifty stayed in the designated 23,300–23,500 range. In the near future, the outlook is probably going to stay mostly optimistic. Put writers have established noteworthy positions at 23,400/23,300, where support levels are observed.
A significant decline below these levels could tip the scales in favour of the bears. It’s a buy-on-dips market until then. On the plus side, a clear advance above 23,500 could trigger a significant upswing in the near future.