Trade Setup For June 20: Nifty Likely To See Range-Bound Trade

The short-term trend of the equity gauges looks non-directional, while their long-term trend looks intact, and any dips should be bought, according to market analysts.

On daily charts, the benchmarks have formed a bearish candle, which indicates temporary weakness from the current levels, according to Shrikant Chouhan, head of equity research at Kotak Securities. "However, the short-term texture of the market is still into the positive side."

The intraday market texture is non-directional and hence, level-based trading would be the ideal strategy for the day traders, Chouhan said. "We are of the view that, 23,450 (Nifty) would be the crucial support zone for the day traders."

According to this latest breakout, the index may test 23,800–24,000 levels in the near future, according to Neeraj Sharma, assistant vice president of technical and derivatives research at Asit C Mehta Investment Interrmediates Ltd. "Thus, a buy-on-dips strategy should be used in the Nifty, with support at 23,330."

The Bank Nifty suggests strength after having crossed the previous barrier of 51,134, Sharma said. "Thus, as long as Bank Nifty holds 51,000 levels, it could test the 51,800–52,000 levels in the short term.”

Rotational buying across key sectors is supporting a positive market sentiment, yet without clear conviction, according to Ajit Mishra, research analyst at Religare Broking Ltd. "Therefore, we advise continuing a strategy of buying on dips in the index".

The GIFT Nifty was trading 8.5 points or 0.04% higher at 23,521.50 as of 06:50 a.m.

The Nifty June futures were down by 0.3% to 23,503.6 at a discount of 12.4 points. Open interest for the Nifty June futures was down by 0.3%.

The Nifty Bank June futures were up by 2.02% to 51,353.4 at a discount of 44.65 points. The open interest for the Nifty Bank June futures down by 2.12%.

For the Nifty Options expiring on June 20, 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 52,000, and the highest put open interest was at 51,000.

Foreign portfolio investors recorded their highest-ever single-day buying of Indian shares so far in 2024 on Wednesday.

Overseas investors bought stocks worth Rs 7,908.4 crore, according to provisional data from the National Stock Exchange, surpassing the previous high of Rs 7,304.1 crore on March 7.

The Indian benchmark equity indices shed their early gains to settle mixed on Wednesday on bank futures expiry day as Larsen & Toubro Ltd. and Reliance Industries Ltd. dragged.

The NSE Nifty 50 settled 41.90 points or 0.18%, lower at 23,516, while the S&P BSE Sensex ended 36.45 points or 0.05%, higher at 77,337.59, marking the highest closing level since its inception.

During the day, the Nifty rose as much as 0.45% to a record high of 23,664 and the Sensex rose 0.71% to a fresh high of 77,851.63. The Nifty Bank retained its gains to settle at the historic level of 51,398.05 on Wednesday. The index scaled a high of 51,957.00 in the morning.

Eight out of the 12 sectors on the NSE declined, with the Nifty Realty declining the most. The broader markets underperformed as the BSE MidCap and the SmallCap settled 0.91% and 0.58% lower, respectively.

• Som Distilleries & Breweries: The Madhya Pradesh government suspended the licence of Som Distilleries due to concerns about child labour. SDPL is part of the Som Group of companies, which also has Som Distilleries & Breweries Ltd., a listed firm, under its umbrella.

• Indian Oil Corp: The company entered a joint venture with GPS Renewables for Sustainable Energy Solutions.

• Sun Pharmaceutical Industries: The company received a warning letter from the US FDA for the Dadra facility. The US FDA warning letter summarises current good manufacturing practice regulations.

• PNB Housing Finance: The company’s holders offer 1.08 crore shares at a floor price of Rs 773 apiece, as per Bloomberg.

• Rice, renewable, ports Companies: The Union Cabinet meeting, the first since Prime Minister Narendra Modi's third term, announced a slew of schemes for rice, renewable, ports companies and others, that could potentially impact their scrip.

Benchmarks in the Asia-Pacific region were trading mixed in early trade on the absence of cues from US markets while investors assessed China's latest interest rate decision.

The Nikkei 225 was 246.68 points or 0.64% lower at 38,324.08, and the S&P ASX 200 was 3.92 points or 0.14% higher at 2,801.25 as of 06:49 a.m.

China kept its benchmark one-year loan prime rate unchanged at 3.45%, and the five-year loan prime rate at 3.95% in line with estimates.

Financial markets in the US were closed Wednesday on account of Juneteenth Day.

Brent crude was trading 0.07% higher at $85.13 per barrel as of 06:51 a.m. Gold was trading 0.14% higher at $2,331.32.

• US Dollar Index at 105.24

• US 10-year bond yield at 4.23%

• Brent crude up 0.11% at $85.16 per barrel

• Bitcoin was up 0.01% at $64,858.69

The rupee closed weaker against the US dollar on Wednesday, ahead of the Fed Manufacturing Index due on Thursday.

The local currency depreciated four paise to close at Rs 83.45 against the greenback.