 "Stock Market Outlook for June 18: Nifty eyes 23,500; Auto, Ixigo in focus")
Pre-stock market update for Tuesday, June 18, 2024: The BSE Sensex and the NSE Nifty are likely to notch new record highs on Tuesday, as they open for trading after an extended weekend break, backed by supportive cues from global peers.
At 07:00 AM, Gift Nifty futures quoted around 23,596 levels, indicating a likely gap-up of over 100 points on the Nifty 50 index.
Global mood
Overnight in the US, the S&P 500 and NASDAQ ended at record highs led by brokerage upgrades and a tech-led rally. Evercore ISI and Goldman Sachs upped its year-end target on the S&P 500 to 6,000 and 5,600, respectively.
The S&P rose 0.8 per cent, while NASDAQ jumped 1 per cent. Dow Jones was up 0.5 per cent.
The US 10-year bond yield eased to 4.27 per cent. Among commodities, Gold futures quoted around $2,335 per ounce, while Brent Crude Oil rose to $84 per barrel.
More From This Section
Markets, in the Asia-Pacific region, quoted with notable gains this morning. The Australian equity benchmark indices– the S&P ASX 200 and All Ordinaries rallied up to 0.8 per cent each. Japan’s Nikkei gained 0.7 per cent, while Kospi was up nearly 1 per cent.
Stocks in Focus
Ixigo: Le Travenues Technology, the parent company of travel aggregator Ixigo, is likely to debut at a healthy premium of 30-odd per cent, indicates Grey Market Premium. The company’s IPO was subscribed up to 98 times, and it issued shares at Rs 93 per share.
Private Banks: CLSA expects private sector banks, which have been stock market laggards over the past few months, to give better returns ahead, given a good business outlook and inexpensive valuations. READ MORE
Auto: Shares of automobile companies are likely to remain in focus in the near-term amid news flow around the Hyundai IPO and build-up in car inventory.
Stocks in F&O ban today: Balrampur Chini, GMR Infra, Hindustan Copper, India Cement, SAIL and Sun TV are the six stocks in the F&O ban period on June 18.
Fund flow action
Foreign institutional investors (FIIs) were net buyers of stocks to the tune of Rs 2,176 crore on Friday; whereas, domestic institutional investors (DIIs) net bought shares worth Rs 656 crore.
In the derivatives segment, FIIs added over 10,400 net longs in index contracts. The index long-short ratio rose to 0.90. The FIIs net index shorts now stand at 52.50 per cent as against 87.13 per cent on May 30.
Trading strategy for Tuesday, June 18 - Should you be a buyer or seller today? Here’s what market experts recommend:
Vinod Nair, Head of Research, Geojit Financial Services.
There is a temporary blip in the market momentum, due to a lack of fresh triggers after the hawkish commentary from the US Fed, lowering the plausibility of rate cut in the short-term.
A near term consolidation seems probable as domestic investors await cues from the upcoming Union Budget. There is a growing opinion that the government could place emphasis on welfare, giving a fillip to consumption-led stocks.
Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities
The Nifty closed above the 23,400 level after failing to close above the same level in the previous three trading sessions. Strong put writing was observed at the 23,300 & 23,400 Strike in Nifty. All eyes will be on the 23,500 Strike in the upcoming week. The call writers have sizeable positions at the 23,500 Strike and the option activity at this strike will provide cues about Nifty’s upcoming direction.
On the Bank Nifty, strong put writing was observed at the 50,000 Strike. At the same time, the call writers (Bears) too gave a tough fight to the put writers (Bulls) at the 50,000 Strike. The option activity at this strike will provide cues about Bank Nifty’s upcoming direction.
Rupak De, Senior Technical Analyst, LKP Securities
The Nifty remained within the defined range of 23,300-23,500. The short-term sentiment is likely to remain more or less positive. Support levels are seen at 23,400/23,300, where put writers have built significant positions.
A decisive fall below these levels might shift the market balance in favor of the bears. Until then, it’s a buy-on-dips market. On the higher end, a decisive move above 23,500 might lead to a sharp upside in the near term.