Trade Setup For June 28: Nifty's 6.72% Monthly Surge Points To Bullish Momentum

The Nifty is up 6.72% on a monthly scale and the strong rollover, which indicates bullish stance could continue in the next series as well, according to analysts, as the 50-stock index rallied for the fourth day. Nifty IT led the gains, driven by Infosys, Reliance Industries Ltd., Tata Consultancy Services Ltd., and UltraTech Cement Ltd.

"Nifty has gained 4.8% in the last one month and 10.6% in CY24 so far. We expect this positive momentum to continue with stock-specific action," according to Siddhartha Khemka, head-Retail Research, Motilal Oswal Financial Services Ltd.

The Nifty made new all-time highs for the last three consecutive sessions, showing signs of resilience amid global sluggishness, according to Rupak De, senior technical analyst, LKP Securities. "The trend remains positive for the short term or until it breaks below 23,800. On the higher end, the index might move towards 24,200," he said.

The Nifty IT index witnessed a strong rally and advanced 2.03% to end at 36,124, according to Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd.

"Technically, the index has achieved short-term consolidation breakout target of 24,000 levels, and managed to close above it. If the index holds above 24,000 levels, then the rally could extend towards 24,250-24,500 in the short term," he said.

The NSE Bank Nifty opened with a gap-up and registered a new record high of 53,180.75. "From a technical standpoint, the index has formed bearish candle near 53,000-53,200 hurdle. If the index sustains above the 53,200 level, the rally could extend towards 54,000," he said.

JPMorgan Chase & Co. will include domestic gilts in its benchmark emerging-market index on Friday. The gilts will be added gradually over a 10-month span, from June 28 to March 31, 2025, with a monthly weight of 1%.

The GIFT Nifty was trading 1.5 points or 0.01% higher at 24,043.5 as of 06:30 a.m.

The Nifty July futures were up by 0.55% to 23,972.50 at a discount of 72 points, with open interest up by 45.23%.

The Nifty Bank July futures where up by 0.01% to 52,905.60 at a premium of 94.3 points, while its open interest was up by 0.54%.

The open interest distribution for the Nifty 50 July 4 expiry series indicated most activity at 25,000 put strikes, with 24,000 call strikes having maximum open interest.

For the Bank Nifty options July 3 expiry, the maximum call open interest was at 53,000 and the maximum put open interest was at 53,000.

Foreign portfolio investors recorded the second highest single-day buying of Indian equities so far in 2024 on Thursday. The investors mopped up stocks worth Rs 7,658.8 crore, while domestic investors turned net sellers after a day of buying and offloaded equities worth Rs 3,605.9 crore, the NSE data showed.

The highest-ever single-day buying of equity shares was on June 19, when FPIs bought stocks worth Rs 7,908.4 crore.

India's benchmark equity indices saw a third day of record close on Thursday. The NSE Nifty 50 claimed its psychologically crucial 24,000 mark and rose the most in a futures and options series this year.

The Nifty closed up 175.70 points, or 0.74%, at 24,044.50, while the S&P BSE Sensex ended 568.93 points, or 0.72%, higher at 79,243.18. Both the Nifty and Sensex rose 0.92% during the day to 24,087.45 and 79,396.03, respectively.

The broader markets ended mixed as the BSE MidCap ended 0.17% higher and SmallCap ended 0.57% lower.

On the BSE, 15 out of 20 sectors advanced. The BSE IT was the top performing sector, and the S&P BSE Industrial was the worst performing sector.

• Vedanta: The company raised Rs 2,500 crore by issuing non-convertible debentures. These secured, unrated, unlisted redeemable NCDs have a face value of Rs 1,00,000 each, totaling Rs 2,500 crore.

• RBL Bank: The bank is set to raise up to Rs 6,500 crore through a mix of equity and debt instruments.

• AU Small Finance Bank: The bank's board of directors approved plans to raise Rs 11,000 crore through equity and debt, with Rs 5,000 crore via QIP and alternatives.

• Reliance Industries: The company's subsidiary Reliance Jio Infocomm Ltd. has announced a hike in tariff ranging between 12.5-25% on existing plans and has also introduced new plans.

• India Cements: Radhakishan Damani and his associated entities sold their entire stake in India Cements Ltd. through open market operations on Thursday. UltraTech Cement Ltd. bought these shares, giving it a 23% stake in India Cements.

Asia Pacific stocks rose on Friday tracing overnight cues from its Wall Steet peers ahead of the US inflation print.

The Nikkei 225 was 209 points or 0.53% higher at 39,550 and the S&P ASX 200 was 30 points or 0.38% up at 7,789 as of 06:31 a.m. Japan’s benchmark Topix index is set for a 34-year high, up 0.6% at 2,810.

US stocks and bonds rose after the latest economic reports pointed out that the Federal Reserve will be able to cut interest rates this year. Economists expect the upcoming inflation print to slow to an annualized rate of 2.6% last month from 2.8%, according to Bloomberg.

The S&P 500 Index and Nasdaq Composite rose 0.09% and 0.30%, respectively as of Thursday. Dow Jones Industrial Average advanced 0.09%.

Brent crude was trading 0.34% lower at $84.96 a barrel. Gold was 0.23% lower at $2,322.28 an ounce.

• US Dollar Index at 106.07

• US 10-year bond yield at 4.34%

• Brent crude down 0.34% at $84.96 per barrel

• Bitcoin was up 0.02% at $60,966.06

The Indian rupee closed stronger against the US dollar on Thursday, as equities hit a fresh record high, supported by overseas inflows, and slight easing in both the greenback and Brent crude oil prices.

The local currency strengthened 11 paise to close at Rs 83.46. It had opened at Rs 83.52 against the greenback.