 "Sensex, Nifty, BSE, NSE, stock market")
Pre-market update for Thursday, June 20, 2024: Equity benchmark indices – the BSE Sensex and the NSE Nifty are likely to start today’s trading session on a quiet note amid benign cues from global peers.
In the day ahead, traders are likely to seek cues from Bank of England interest rate decision and the weekly Nifty options expiry.
At 07:00 AM, Gift Nifty futures quoted around 23,525 levels, indicating a likely flat start to the trading action on the Nifty 50 index.
Global mood
The US market was shut for trading on Wednesday. Meanwhile, the 10-year bond yield quoted at 4.246 per cent. Among commodities, Gold futures steadied around $2,340 per ounce levels, while Brent Crude Oil hovered around $85 per barrel.
Markets, in the Asia-Pacific region, were trading on a mixed note. Japan’s Nikkei had slipped 0.7 per cent, while Kospi advanced 0.2 per cent. Taiwan alongside Australian benchmark indices– the S&P ASX 200 and All Ordinaries were more or less unmoved.
More From This Section
Fund flow action
Foreign institutional investors (FIIs) were net buyers for the third straight day yesterday. FIIs net bought shares to the tune of Rs 7,908 crore on Wednesday; whereas, domestic institutional investors (DIIs) also purchased stocks worth Rs 7,108 crore.
In the derivatives segment, FIIs added over 56,911 contracts as net longs in index futures. The index long-short ratio crossed the 1:1 level for the first time since May 28; the ratio now stands at 1.18.
Among the fresh additions, maximum (56,593 contracts) OI addition was seen in Bank Nifty futures. FIIs added 3,028 contracts in Nifty futures, and were net sellers in Nifty MidCap futures.
Trading strategy for Thursday, June 20 - Should you be a buyer or seller today? Here’s what market experts recommend:
Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities
Call writers (Bears) managed to keep the put writers (Bulls) away from successfully breaching the 23,600 Strike in Nifty. The 23,500 Strike saw fierce battle between both the call & put writers in the Index. The bulls lead the bears at the close at this strike and the option activity at this strike will provide cues about Nifty’s Intra-day direction ahead of the weekly expiry today.
In case of Bank Nifty, all strikes from 50,500 until 51,000 saw call writers (Bears) exiting and put writing. The call writers (Bears) lead the put writers (Bulls) marginally at the 51,500 Strike and the option activity at this strike will provide cues about Bank Nifty’s upcoming direction.
Om Mehra, Technical Analyst, SAMCO Securities
The Nifty hourly RSI hints at a minor bearish divergence, creating suspicion about its upward trajectory. The immediate support level is at 23,400, and if Nifty falls below 23,330, the bullish trend may slow down. A decisive move above 23,680 would reignite the uptrend and open the way toward the 23,910 level.
After a brief period of consolidation, the Bank Nifty broke out to reach an all-time high of 51,957. This movement formed a strong daily bullish candle. Importantly, Bank Nifty surpassed its previous high of June 3, indicating a possible push towards the 127.8 per cent Fibonacci extension level at 52,550. The RSI now stands at 64 levels which reflect a sustained momentum.
Neeraj Sharma, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates
Technically, on a daily basis, the Nifty sustained above the breakout of last week's consolidation range of 23,000 to 23,500 levels, indicating strength. According to this latest breakout, the index may test 23,800-24,000 levels in the near future. Thus, a buy-on-dips strategy should be used in the Nifty, with support at 23,330.
Meanwhile, the Bank Nifty has crossed the previous barrier of 51,134 and managed to close above it, suggesting strength. Thus, as long as Bank Nifty holds 51,000 levels, it could test the 51,800–52,000 levels in the short term.
Rupak De, Senior Technical Analyst, LKP Securities
The Nifty remained very range-bound, staying broadly within 23,450 and 23,650. Sentiment continues to favor short-term bullish trades as the index sustained above the 55 exponential moving average (EMA) on the hourly chart.
The short-term trend remains strong, and any dips towards the 55-hour EMA, which is currently pegged at 23,340, might get bought into. On the higher end, in the short term, the index might move towards 23,800 and beyond.
Stocks to watch
Tata Motors: The auto major said it will raise prices of its commercial vehicles by 2 per cent from July 1.
Stocks in F&O ban period today: Balrampur Chini, Chambal Fertilisers, Hindustan Aeronautics, Hindustan Copper, India Cement, Indus Tower, Piramal Enterprises and SAIL are the eight stocks in the F&O ban period on June 20.
