Dear Trader…
The markets began the week on a subdued note,
ending with a modest gain of half a percent while continuing the ongoing
consolidation phase. After an initial uptick, the Nifty traded within a narrow
range throughout the day and settled at 24,461.15. Barring the banking sector,
all other indices closed in the green, with auto, energy, and FMCG emerging as
the top gainers. The broader markets outperformed, posting gains of over 1%.
We are witnessing rotational buying across
sectors, which is helping the index maintain its positive tone despite the
consolidation. However, participation from the banking sector is crucial, as it
could provide the necessary momentum to drive the Nifty toward the 24,800 mark.
Participants are advised to maintain a “buy on dips” approach, focusing on
stocks demonstrating relative strength.
Why Indian stock market not fall big?
(1) DIIs and FIIs are buying on dips, (2) This
correction is 8 months old, (3) Brent crude below $63, (4) Dollar index below
100, (5) INR appreciated Vs Dollar index in the last 1 month, (6) Results are
In-line mostly, (7) Valuations in large caps are not that expensive, (8) India
may get decent trade deal Vs China / others, (9) Indian Corporates’ balance
sheet is not highly leveraged, (10) Fiscal deficit is under control, (11) RBI
provided decent liquidity to banks & credit growth may pick-up, (12)
Inflation is under control & and a few more rate cuts will come, (13) Nifty-500
basket profit growth will be around 10-11% for next 2-3 years minimum.
Nifty futures opened at 24481 points against the
previous close of 24400 and opened at a low of 24471 points. Nifty Future
closed with an average movement of 159 points and a rise of around 153 points
and 24553 points…!!
On the NSE, the midcap 100 index will rise 1.81% and smallcap 100 index is closing rise 1.02%. Speaking of various sectoral indices Only PSU
Bank and Privet Bank 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.93249, fell from a high of Rs.94750 points to a low of Rs.92925 with
a rise of 2094 points, a trend of around Rs.94731 and July Silver opened at Rs.94246,
fell from a high of Rs.95040 points to a low of Rs.93935 with a rise of 976 points,
a trend of around Rs.95040.
Meanwhile,
Markets started the week on a firm footing, lifted
by steady foreign inflows and optimism around an impending India-US trade deal.
Strength in Asian currencies and easing global trade tensions added to the
positive sentiment, even as activity remained muted in some global markets due
to holidays.
Technically,
the important key resistances are placed in Nifty future are at 24553 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 24676 – 24808 levels. Immediate support is placed at 24404
– 24373 levels.
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