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Pre-market update for Friday, June 21, 2024: Equity benchmark indices – the BSE Sensex and the NSE Nifty are likely start today’s trading session on a tentative note amid mixed cues from global peers.
The market may seek direction from manufacturing and services PMI data to be released during the day. Post market hours, the RBI will be releasing the minutes of its recently concluded Monetary Policy Meeting.
The Sensex and the Nifty at present levels were holding up to 0.6 per cent gain for the week. If finished higher, this would be the third straight weekly gain for the BSE and NSE benchmark indices.
At 07:00 AM, Gift Nifty futures quoted around 23,590 levels, indicating a likely flat to positive start to the trading action on the Nifty 50 index today.
Global mood
Cues from the US market were mixed – as the S&P 500 and NASDAQ retreated from record high levels and ended 0.3 per cent and 0.8 per cent lower, while Dow Jones finished with a strong 0.8 per cent gain.
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The US 10-year bond yield edged higher to 4.27 per cent. Among commodities, Gold futures rose to $2,375 levels, while Brent Crude Oil hovered around $85 per barrel.
Markets, in the Asia-Pacific region, traded on a listless note this morning. Japan’s Nikkei and the Australian benchmark indices were more or less unmoved, while Kospi fell 0.80 per cent.
Fund flow action
Foreign institutional investors (FIIs) were net buyers for the fourth straight day on Thursday. FIIs net bought stocks worth Rs 415.30 crore on June 20; whereas, domestic institutional investors (DIIs) were net sellers of shares to the tune of Rs 325.81 crore.
In the derivatives segment, FIIs net bought index futures to the tune of Rs 1,739.69 crore, while sold index options worth Rs 7,133.30 crore. FIIs, mainly, bought Nifty futures worth Rs 1,426.05 crore (net bought 24,261 contracts) on June 20.
As a result, FIIs index futures long-short ratio reached 1.31, with 56.74 per cent index longs versus 43.26 per cent short positions.
On the other hand, DIIs (Domestic Institutional Investors) and retail investors have raised their bets on the short side in index futures,
Trading strategy for Friday, June 21 - Should you be a buyer or seller today? Here’s what market experts recommend:
Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates
Technically, on a daily basis, the Nifty has formed an inside bar candlestick pattern. However, the index has managed to close above 23,500 levels, indicating strength. As long as the index holds 23,330 levels, it may test 23,800–24,000 levels in the short term. Thus, a buy-on-dips strategy should be used in the Nifty, with support at 23,330.
The Bank Nifty, on a daily scale, has managed to sustain above the previous barrier of 51,134. Thus, 51,100–51,000 will act as immediate support for the index. As long as Bank Nifty holds 51,000 levels, it could test the 52,000–52,500 levels in the short term.
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities
The market consolidated within a range, with the Nifty stuck between 23,400 and 23,650. The undertone remains bullish as long as the index sustains above the 23,400 support, where aggressive put writing is visible. Surpassing the 23,650 mark will open further room towards the 23,800/24,000 levels.
Stocks in F&O ban period on Friday: Balrampur Chini, Birlasoft, GNFC, Hindustan Aeronautics, Hindustan Copper, Indus Tower and Piramal Enterprises are the seven stocks in the futures & options ban period today.
