Pre-market report for June 20, 2024, Thursday: Due to positive inputs from peers throughout the world, the equity benchmark indices, the BSE Sensex and the NSE Nifty, are probably going to begin today’s trading session quietly.
Traders will probably look to the Bank of England’s interest rate announcement and the weekly Nifty options expiry for clues during the next day.
Gift Nifty futures quoted at 23,525 levels at 7:00 AM, suggesting that trading on the Nifty 50 index will probably begin flat.
worldwide attitude
Trading on the US market was suspended on Wednesday. In the meantime, the yield on a 10-year bond was reported at 4.246 percent. Among commodities, Brent Crude Oil stayed at $85 per barrel, while Gold futures remained stable at $2,340 per ounce.
The Asia-Pacific region’s markets were moving in mixed directions. Japan’s Kospi had a 0.2% increase while the Nikkei fell 0.7%. Taiwan remained mostly unchanged, as did the S&P ASX 200 and All Ordinaries, two Australian benchmark indices.
Actions related to fund flow
For the third day in a row, yesterday saw net purchases by foreign institutional investors (FIIs). On Wednesday, domestic institutional investors (DIIs) also bought equities for Rs 7,108 crore, while foreign institutional investors (FIIs) net bought shares worth Rs 7,908 crore.
FIIs increased their net long positions in index futures by over 56,911 contracts in the derivatives market. For the first time since May 28, the index long-short ratio crossed the 1:1 threshold; it is at 1.18.
The largest (56,593 contracts) OI addition among the new additions was observed in Bank Nifty futures. FIIs were net sellers of Nifty MidCap futures and added 3,028 contracts in Nifty futures.
Thursday, June 20, trading plan – 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.
The put writers, or Bulls, were unable to prevent the call writers, or Bears, from breaking through the 23,600 Strike in Nifty. There was a tough fight in the Index between the call and put writers during the 23,500 Strike. Before today’s weekly expiry, the option activity at this strike will give clues regarding the direction of the Nifty intraday, as the bulls lead the bears at the close.
Regarding Bank Nifty, call writers (Bears) left and entered writing during every strike that occurred between 50,500 and 51,000. At the 51,500 strike, the put writers (Bulls) are slightly ahead of the call writers (Bears), and the option activity during this strike will give clues about the future direction of the Bank Nifty.
Om Mehra, SAMCO Securities Technical Analyst
The Nifty hourly RSI raises doubts about its upward trend by hinting at a slight bearish divergence. The Nifty could slow down the positive momentum if it closes below 23,330. The nearest support level is at 23,400. The uptrend would be rekindled and a rise above 23,680 would pave the way for the 23,910 mark.
A short spell of consolidation preceded the Bank Nifty’s breakout to an all-time high of 51,957. This motion created a robust bullish candle throughout the day. Significantly, Bank Nifty exceeded its June 3 high, suggesting a potential advance to the 52,550 level, or 127.8% Fibonacci extension level. At 64 levels, the RSI indicates a persistent momentum.
Neeraj Sharma is Asit C. Mehta Investment Intermediates’ AVP of Technical and Derivatives Research.
Technically speaking, the Nifty maintained its resilience on a daily basis by staying above the breakout of the consolidation area of levels 23,000 to 23,500 from previous week. This most recent breakout suggests that the index may soon target the 23,800–24,000 level. Consequently, the Nifty should be bought on dips, with support at 23,330.
In the meantime, the Bank Nifty managed to close above the prior barrier of 51,134 and has crossed above, indicating strength. Therefore, in the immediate term, Bank Nifty may challenge the 51,800–52,000 levels as long as it maintains its 51,000 levels.
Senior Technical Analyst at LKP Securities, Rupak De
The Nifty stayed pretty close to its range, circling about 23,450 and 23,650. The hourly chart shows that the index maintained above the 55 exponential moving average (EMA), indicating that sentiment is still in favour of short-term positive transactions.
Any drops towards the 55-hour EMA, which is currently fixed at 23,340, may be purchased into because the short-term trend is still robust. In the short run, the index may rise to 23,800 and higher on the higher end.
stocks to keep an eye on
Tata Motors: The major automaker said that as of July 1, its commercial vehicle pricing will increase by 2%.
The eight equities that are prohibited from trading on June 20 are Balrampur Chini, Chambal Fertilisers, Hindustan Aeronautics, Hindustan Copper, India Cement, Indus Tower, Piramal Enterprises, and SAIL.