Trade Setup For June 21: Nifty Consolidating With Positive Bias, Awaits Decisive Breakout

The markets are consolidating with a positive bias and a decisive breakout of a key support level could a trigger fresh rally, according to market analysts.

A decisive close above 23,600 in the NSE Nifty 50 could trigger fresh upward momentum, potentially pushing the index to 24,000 levels, according to Ajit Mishra, research analyst at Religare Broking Ltd. "On the downside, 23,400 is expected to act as strong support."

Besides banking and IT, themes like sugar, fertilisers and chemicals are showing good traction on the expected lines, Mishra said.

Amid strong FII flows and healthy macros in the domestic front, the market is consolidating with a positive bias, according to Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services Ltd. "Also, an expectation of a growth-focused budget is aiding sentiments and is likely to lead to sector-specific action."

The Nifty has managed to close above 23,500 levels, indicating strength, Hrishikesh Yedve, technical and derivatives research analyst at Asit C Mehta Investment Interrmediates Ltd., said. As long as the index holds 23,330 levels, it may test 23,800–24,000 levels in the short term, he said.

For the Bank Nifty, the 51,100–51,000 will act as immediate support for the index, Yedve said. "As long as Bank Nifty holds 51,000 levels, it could test the 52,000–52,500 levels in the short term.”

The GIFT Nifty was trading 34.5 points or 0.15% lower at 23,593.00 as of 06:49 a.m.

The Nifty June futures were up by 0.4% to 23,582.5 at a premium of 15.5 points. Open interest for the Nifty June futures was up by 0.35%.

The Nifty Bank June futures were up by 0.82% to 51,755.1 at a discount of 28.15 points. The open interest for the Nifty Bank June futures down by 7.2%.

For the Nifty Options expiring on June 27, the highest call open interest is at 24,000, while the highest put open interest stood at 23,000.

For the Bank Nifty Options expiring on June 26, the highest call open interest stands at 55,000, and the highest put open interest was at 50,000.

Overseas investors continued their buying streak for the fourth straight day on Thursday.

Foreign portfolio investors mopped up stocks worth Rs 415.3 crore, while domestic institutional investors turned net sellers after three days of buying and selling equities worth Rs 325.8 crore, according to provisional data from the National Stock Exchange.

The NSE Nifty 50 recovered from the previous session's fall and the S&P BSE Sensex logged its best winning streak in four months to close at their highest levels.

The Nifty ended 51 points or 0.22%, up at 23,567, while the Sensex closed 141.34 points or 0.18%, up at 77,478.93. During the day, both indices gained over 0.4%.

Most sectoral indices on the NSE closed higher, with Realty and Metal rising the most. The broader markets outperformed the benchmark indices as the BSE MidCap and the SmallCap settled 0.55% and 1% higher respectively.

• Oil and Natural Gas Corp.: The company appointed Devendra Kumar as the chief financial officer and key managerial personnel of the company with immediate effect.

• GIC Housing Finance: The company has become aware of a malware attack affecting some of its end-user systems and isolated the affected systems from the network to stop its further impact. 

• Bank of Baroda: The company appointed Chayani Manoj Sundar as CFO effective tomorrow.

• Voltas: The company executed a share purchase agreement with Singapore-based step-down arm Universal MEP.

Benchmarks in the Asia-Pacific region declined in early trade Friday, taking cues from overnight stock moves on Wall Street before Eurozone PMI data, and Federal Reserve official's speech.

The Nikkei 225 was 6.49 points or 0.02% higher at 38,639.51 and the Kospi was 21.62 points or 0.77% lower at 2,786.01 as of 06:48 a.m.

US Tech stocks had been lifted by the continued AI frenzy and resilient economic growth that should continue to support corporate earnings. However, the S&P 500 lost traction after briefly topping the 5,500 mark to set a new record.

The S&P 500 Index and Nasdaq Composite fell 0.25% and 0.79%, respectively, as of Thursday. The Dow Jones Industrial Average rose 0.77%.

Brent crude was trading 0.09% lower at $85.62 a barrel. Gold rose 0.02% to $2,360.62 an ounce.

• US Dollar Index at 105.64

• US 10-year bond yield at 4.26%

• Brent crude down 0.15% at $85.58 per barrel

• Nymex crude up 0.74% at $82.17 per barrel 

• Bitcoin was down 0.34% at $64,839.03

The Indian rupee closed at a record low on Thursday amid a strong dollar and likely dollar purchases by overseas investors and oil marketing companies.

The local currency weakened 20 paise to close at an all-time low of Rs 83.65 against the US dollar, according to Bloomberg data.