Indian benchmark indices ended higher for the second straight session amid volatility on June 25. At close, the Sensex was up 226.04 points, or 0.43 percent at 52,925.04, and the Nifty was up 70 points, or 0.44 percent, at 15,860.40.
Momentum indicators like RSI, MACD to strengthen further in favour of a positive outlook. For the week, the Nifty and the Sensex added a percent each.
On the sectoral front, Nifty bank, metal and PSU bank indices added 1-2.5 percent, while BSE midcap index added 1 percent and smallcap index rose 0.4 percent.
The Nifty formed a small-bodied bullish candle on the daily scale and gave the second-highest ever daily close.
It formed a bullish candle on the weekly scale and regained its decline of last week with the highest-ever weekly close.
Here’s what experts suggest investors should do on June 28:
Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services
Nifty index opened positive and after some pressure in the initial hours of the day, it recovered from intraday low of 15,772 levels. It moved in the positive territory and closed with gains of around 60 points. It formed a small bodied Bullish candle on daily scale and given a second highest-ever daily close. It formed a Bullish candle on weekly scale and regained its decline of last week with highest-ever weekly close. Now, it has to hold above 15,800 zones to witness an up move towards 16,000 and 16,200 zones while on the downside, support can be seen at 15,700 and 15,600 zones.
Since it is the beginning of new series, option data is scattered at different strikes. On option front, Maximum Put OI is at 15,500 followed by 15,000 strike while maximum Call OI is at 16,000 followed by 16,500 strike. Call writing is seen at 16,400 and 16,500 strike while Put writing is seen at 15,800 then 15,400 strike. Option data suggests a wider trading range in between 15,500 to 16,200 zones while an immediate range in between 15,700 to 16,000 zones.
Bank Nifty opened positive and moved northwards throughout the day. Banking stocks took the index to 35,491 levels and recovered the losses of the last week. It formed a Bullish candle on daily scale and a Bullish engulfing candle on weekly frame. Now, it has to hold above 35,250 zones to move up towards 35,750 and 36,000 zones while on the downside support exists at 35,000 and 34,750 levels.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
Equity market in India witnessed positive move this week, supported by further decline in new COVID cases and increased pace of vaccination. BSE Sensex and Nifty 50 increased by 1.1 percent each during this week. Market rally was broad-based with BSE Midcap and BSE Smallcap index also moving up from correction witnessed in the latter part of last week. BSE midcap and BSE smallcap gained 1.4% and 1.5%, respectively during the week. On a lower closing last week, majority indices saw positive gains. BSE Capital goods, BSE Metal, BSE IT and BSE Auto reported gains of ~4.2%, ~3.6%, 2.9% and 2.5%, respectively this week.
In the coming weeks, markets will continue monitoring monsoon spread, new COVID cases and lifting of lockdown. Apart from that, the markets will keep an eye on crude oil prices, inflation numbers and on any actions from Central Banks globally. FPIs have been net buyers in Indian equities in June 2021 till date. They have bought to the tune of ~Rs 3,842 crore as they turned optimistic on steady increase in business activities after various states continued to relax restrictions. An increase in the pace of vaccination in the past week also helped improve investor sentiment.
Mazhar Mohammad, Founder & Chief Market Strategist at Chartviewindia
Albeit an indecisive formation, which resembles Hanging Man with a narrow range, is registered on daily charts, Nifty50 concluded the week with a strong bullish candle on the weekly charts. As trend in the short term seems to be mixed and indecisive, it looks inevitable for bulls to register a breakout above 15,900 on closing basis to witness a sustainable upmove. In that scenario a range breakout target of 16,300 can be projected as Nifty currently appears to be limiting itself to the 15,500 – 15,900 kind of consolidation range. However, failure to sustain above 15,770 in next session may initially drag down the indices towards 15,700 – 670 zone but a close below 15,670 shall weaken Nifty further with targets placed near 15,500 levels.
By taking prevailing indecisive trend in consideration, we advise traders to go long only on a close above 15,900 where as intraday shorting opportunity can be considered below 15,770 for a modest target of 15,690.
Nirali Shah, Head of Equity Research, Samco Securities
Nifty 50 index has been trading sideways for almost three weeks now. It seems to be facing a temporary halt after a period of outperformance. Overall market sentiments in global indices look positive and eventually Nifty is also likely to catch up. After a strong bounce back from 15,450, this zone is now being established as a crucial short-term support. We suggest traders maintain a bullish bias on the market and remain watchful for any break of the crucial support, as this would lead to weakness in the short term.
Ajit Mishra, VP - Research, Religare Broking
Markets inched marginally higher in continuation to Thursday’s rise and settled around the day’s high. After opening on a positive note, the benchmark witnessed profit taking and turned flat in no time. However, healthy buying in banking, metals and auto stocks supported the markets to regain some strength as the session progressed. Consequently, the Nifty closed at 15,860 levels, up by 0.4%. The broader markets too ended higher in the range of 0.5-1.1%. On the sector front, all indices ended in positive, except for FMCG and Energy.
The benchmark is hovering near a record high largely led by a gradual pickup in economic activities, as states start unlocking, the expectation of better earnings and ramp-up of vaccination. On the flip side, the possibility of the third wave of COVID can impact market sentiments. We remain cautiously optimistic on the markets and suggest aligning the positions accordingly.
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