Trade Setup For June 24: Nifty Likely To See Pullback Before Resuming Uptrend

The momentum equity gauges at the current levels are indicating a short-term weakness with a possibility of a pullback before an up move, according to market analysts.

A small bearish candle on weekly charts and a double top formation on intraday charts indicate further weakness from the current levels, according to Amol Athawale, vice president of technical research at Kotak Securities. "However, the medium-term texture of the market is still into the positive side."

The outcome of the GST meeting may trigger sector-specific developments during the session.

The Nifty might see some more pullback before continuing its upward trend. The markets are witnessing sectoral rotation as underperforming stocks gain focus. Some more profit-booking and corrections are expected, according to Ruchit Jain, lead research analyst at 5Paisa Ltd.

Attention will remain on updates related to the budget and global market cues, particularly from the US, according to Ajit Mishra, research analyst at Religare Broking Ltd.

Although volatility may increase following two weeks of subdued activity, the outlook is expected to stay optimistic, buoyed by strong performance in banking and early signs of a rebound in the IT sector, Mishra said.

In the case of profit-taking, the Nifty index is anticipated to find support in the 23,100–23,300 range, while a decisive close above 23,600 could propel it towards a new milestone at 24,000, Mishra said.

The GIFT Nifty was trading 34 points or 0.14% lower at 23,421.50 as of 06:52 a.m.

The Nifty June futures were down by 0.52% to 23,487.3 at a discount of 13.8 points. Open interest for the Nifty June futures was down by 5.08%.

The Nifty Bank June futures were down by 0.3% to 51,613.35 at a discount of 48.1 points. The open interest for the Nifty Bank June futures down by 8.64%.

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 54,000, and the highest put open interest was at 49,000.

Overseas investors broke their buying streak and turned sellers on Friday.

Foreign portfolio investors sold stocks worth Rs 1,790.2 crore, while domestic institutional investors turned net buyers after a day selling and bought equities worth Rs 1,237.2 crore, according to provisional data from the National Stock Exchange.

India's benchmark stock indices closed lower on Friday as investors booked profits. However, on a weekly basis, the indices ended higher for the third time, posting a record-high weekly close.

The NSE Nifty 50 fell 111.15 points, or 0.47%, to close at 23,455.85. The S&P BSE Sensex fell 269.03 points, or 0.35%, to end at 77,209.90.

Broader markets ended on a mixed note on Friday. The S&P BSE Midcap ended 0.26% lower, while S&P BSE Smallcap settled 0.06% higher.

On BSE, 13 sectors declined and seven advanced. The S&P BSE Telecommunication rose the most, and the S&P BSE Oil & Gas declined the most.

On a weekly basis, the indices posted their highest closing with Nifty gaining 0.15%.

• Prestige Estates Projects: The board approved raising up to Rs 5,000 crore via QIP.

• Ireda: The company has successfully raised Rs 1,500 crore through the issuance of bonds.

• SP Apparels: The company completed the acquisition of Young Brand Apparel for Rs 167 crore.

• HDFC Bank: SBI Mutual Fund raises stake in the company to over 5%.

• Sterlite Technologies: The pre-trial mediation with US-based Prysmian Cables remains unsuccessful. The case against the company filed by Prysmian Cables is to commence trial on July 23.

Most Asia-Pacific markets declined on Monday as market participants await inflation figures from various Asian countries during this week to provide a further outlook on global interest rates scenario.

Inflation prints from Japan and Australia are scheduled to be published this week.

The Nikkei 225 was 142.05 points or 0.37% higher at 38,738.52 and the S&P ASX 200 was 46.30 points or 0.59% lower at 7,749.70 as of 06:50 a.m.

The expiration of the options contract on Wall Street caused a significant spike in trading volumes during the close of the session on Friday. It subjected Nvidia, a frontrunner of the bull market to a roller coaster ride.

The S&P 500 Index and Nasdaq Composite fell 0.16% and 0.18%, respectively as on Friday. Dow Jones Industrial Average rose 0.04%.

Brent crude was trading 0.42% lower at $84.88 a barrel. Gold rose 0.06% to $2,323.4100 an ounce.

• US Dollar Index at 105.86

• US 10-year bond yield at 4.26%

• Brent crude down 0.49% at $84.82 per barrel

• Bitcoin was down 0.73% at $63,240.15

The domestic currency recovered on Friday at closing due to possible inflows into domestic bonds, and RBI intervention after having opened at a record low.

The local currency strengthened by 11 paise to close at Rs 83.54 against the greenback, according to Bloomberg.