Bears took charge of D-Street from the word go on June 23 amid muted global cues and persistent selling by foreign investors (FIIs). The S&P BSE Sensex saw a dip of nearly 300 points while the Nifty50 closed below 15700 levels.
Let’s look at the final tally – the S&P BSE Sensex was down 282 points to 52,306 while the Nifty50 closed 85 points lower at 15,686.
FIIs pulled out more than Rs 2,000 crore (June 21-June 22) from the cash segment of the Indian equity markets, but on a monthly basis, they are still net buyers to the tune of Rs 3576 crore as of June 22.
"Consolidation continued as lack of key triggers in the domestic market and flight of foreign funds influenced investors to stay on the sideline. Global markets remain mixed as US Federal Reserve’s reassurance on a slow pace in rates hikes failed to give momentum to the market,” Vinod Nair, Head of Research at Geojit Financial Services said.
“All the sectors traded in red barring auto, as all major manufacturers decided on a price hike. Easing lockdown restrictions and pick up in vaccination drive will aid economic activity, which is likely to be visible in the second half of the financial year,” he added.
Sectorally, buying was seen in consumer durables, auto, and consumer discretionary while profit booking was seen in oil & gas, utilities, metal, and energy stocks.
On the broader markets front – the S&P BSE Midcap index fell 0.2 percent, and the S&P BSE Smallcap index fell 0.4 percent.
| Index | Prices | Change | Change% |
|---|---|---|---|
| Sensex | 52,306.08 | -282.63 | -0.54% |
| Nifty 50 | 15,686.95 | -85.80 | -0.54% |
| Nifty Bank | 34,574.00 | -171.00 | -0.49% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Maruti Suzuki | 7,432.70 | 167.30 | +2.30% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| Adani Ports | 718.70 | -24.20 | -3.26% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Auto | 10588.50 | 48.05 | +0.46% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Metal | 5061.80 | -57.60 | -1.13% |
Technically, the index is consolidating, and the market could turn volatile on Thursday ahead of the June F&O expiry. Any dips towards 15600 could be used to create long positions but a close below 15450 could trigger further selling pressure, suggest experts.
Here’s what experts suggest investors should do on June 24:
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
After a gap up opening, Nifty attempted to test the recent high of 15900, however, it faced resistance. As a result, the index tumbled down and formed an Engulfing bear candle on the daily chart.
The formation of the bearish candle highlights the fact that the index is in consolidation mode & has pressure on the higher side. Nifty can move down further towards the hourly lower Bollinger Band near 15600.
Positional traders can look to initiate a fresh long position near 15600 with a reversal below the recent low of 15450. Once the short term consolidation is over, the Nifty is expected to start the next leg up, which will take it to 16000 and higher.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
The market witnessed a roller coaster ride, as it opened higher but lost momentum thereafter to close at the lowest point of the day. This could be due to the monthly and quarterly F&O contracts expiry and the AGM of Reliance Industries on Thursday.
On Thursday, the markets would be in a trading range of 15800/52800 and 15550/51700 levels. Below 15670/52250, the Nifty/Sensex would quickly drop to the level of 15550/51700.
On the other hand, if the Nifty/Sensex trades above 15670/52250, then the market would move to the level of 15800/52800. One should be a level based trader.
Jay Thakkar- VP and Head of Equity Research at Marwadi Shares and Finance Ltd.
Nifty50 closed in the negative territory a day before the monthly expiry, this clearly indicates that the resistance on the upside is pegged at 15850-15900 levels and till the index doesn't close above those levels, it may continue to consolidate within this range of 15500-15900.
The daily momentum indicator is in the sell mode, signalling a loss of upward momentum. As far as June expiry is concerned, Nifty is likely to see the expiry between 15800-15600 levels.
BankNifty too failed to surpass 35300 levels on the upside, and till those levels are not taken off the overall trend remains sideways to negative.
Expert: Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services
Nifty50 formed a Bearish Belt Hold candle on a daily scale and closed with losses of around 85 points.
Now, the index has to hold above 15700 zones to witness an up move towards 15800 and 15900 zones, while on the downside support can be seen at 15600 and 15550 zones.
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