Dear
Trader…
The market kicked off the week on a strong note, extending
last week’s momentum with gains of over one percent. Following a gap-up
opening, the Nifty future moved higher, led by strength in banking and
financial stocks, which lifted overall sentiment and triggered broad-based
buying. All sectors participated in the rally – except FMCG – with energy, IT,
and realty leading the charge.
The Nifty future has finally broken past the key hurdle at
23,800 decisively, after two months of broad consolidation, indicating a
potential move towards 24,135 initially, and then gradually higher towards
24,606. We reiterate our positive outlook on the index and suggest continuing
with a “buy on dips” strategy, while acknowledging the possibility of an
intermediate pause or consolidation following the recent vertical rally.
Traders should align their positions accordingly and avoid adopting a contrarian
stance.
Nifty futures opened at 23875 points against the previous
close of 23851 and opened at a low of 23875 points. Nifty Future closed with an
average movement of 318 points and a rise of around 284 points and 24135 points…!!
On the NSE, the midcap 100 index will rise 2.50% and smallcap 100 index is closing rise
2.21%. Speaking of various sectoral indices only FMCG
stocks were seen selling on the NSE, while all other sectoral indices closed
higher.
At the start of intra-day trading, June gold opened at Rs.96696,
fell from a high of Rs.97022 points to a low of Rs.96235 with a rise of 1666 points,
a trend of around Rs.96920 and May Silver opened at Rs.95600, fell from a high
of Rs.96389 points to a low of Rs.95292 with a rise of 1243 points, a trend of
around Rs.96280.
Meanwhile, the
continued weakness in the US Dollar Index, which slipped below the 98 mark
today, is further reinforcing positive sentiment in the Indian market. There is
optimism over U.S. Vice President JD Vance’s four-day visit to India on hopes
of a bilateral trade deal between the two countries. We expect positive
momentum to continue in the market,
supported by
strong domestic cues with stock/sector specific movements on the back of
ongoing Q4 earnings announcements. Key results tomorrow include HCL Tech, Havells,
AU Small Finance Bank, Tata Communications, Waaree Energies amongst others.
Technically, the important key resistances are placed in Nifty future are at 24202 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 23303 – 23373 levels. Immediate support is placed at 24088 – 24008 levels.
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