Taking Stock | Nifty back above 15,500, Sensex up 443 pts; auto stocks shine

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Maruti Suzuki, Hero MotoCorp, Eicher Motors, M&M, and Bajaj Auto were among the top Nifty gainers.

The Indian benchmarks recouped most of the previous session losses and ended on a positive note in a highly volatile session on June 23 with the Nifty comfortably finishing above 15,500.

At close, the Sensex was up 443.19 points or 0.86% at 52,265.72, and the Nifty was up 143.40 points or 0.93% at 15,556.70.

After a flat start, the market gained the upside momentum as the day progressed. However, selling in the afternoon session erased the intraday losses, but buying in Auto, Information Technology, Pharma, and Realty names helped the market to close in the green.

“Indian markets opened on a positive note following Asian market peers which were trading mostly green led by China. During the afternoon session, markets trimmed some of their gains as European markets struggled to shrug off recession fears but managed to trade in the green,” said Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers.

“Buying in frontline stocks such as Maruti Suzuki, Asian Paints, and Bharti Airtel were aiding sentiment, while selling in Power Grid, Titan Co and NTPC kept the gains in the markets in check.”

“Traders were encouraged as Prime Minister Modi said the government expects the Indian economy to grow by 7.5% this year. Additional support came with RBI data showing that the country’s foreign exchange reserves in nominal terms, including valuation effects, rose by $30.3 billion in the 2021-22 fiscal against a $99.2 billion expansion in FY2020-21,” Solanki added.

Maruti Suzuki, Hero MotoCorp, Eicher Motors, M&M, and Bajaj Auto were among the top Nifty gainers. The losers were Reliance Industries, Coal India, NTPC, Power Grid Corporation, and Grasim Industries.

Barring Energy, all the sectoral indices ended in the green. The Nifty Auto Index added 4.4 percent, while Information Technology and Pharma indices rose 2 percent and 1.5 percent, respectively.

Stock and sectors

On the BSE, Auto Index rose 4.4 percent, while Capital Goods, Information Technology, Healthcare, and Realty indices gained 1 percent each.

The BSE midcap and smallcap indices, too, added 1 percent each.

A long build-up was seen in Maruti Suzuki, Hero MotoCorp, and Eicher Motors, while a short build-up was seen in Interglobe Aviation, Torrent Power, and Manappuram Finance.

Among individual stocks, a volume spike of more than 200 percent was seen in Petronet LNG, Adani Ports, and Oracle Financial Services Software.

Over 100 stocks hit their 52-week low on the BSE. These included Gujarat Gas, Muthoot Finance, Thyrocare Technologies, PNB Gilts, Tata Steel, Zee Learn, and DB Corp.

On the other hand, Elecon Engineering, Kohinoor Foods, and Insecticides (India) touched their 52-week high.

Outlook for June 24

Rupak De, Senior Technical Analyst at LKP Securities:

Nifty ended higher after a volatile trading session on the day of weekly expiry. On the daily chart, the Nifty registered a strong comeback after a day of decline in the previous session.

The daily RSI is in positive divergence. The trend is likely to remain positive in the near term.

Support on the lower end is placed at 15,400; a close below 15,400 may induce the resumption of a market sell-off. On the higher end, resistance is visible at 15,600/15,800.

Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities

The Nifty trend remains weak with resistance seen at 15,870 – unless the same is crossed expect weakness to continue.

Short-term volatility continues to remain high. Broadly, expect pressure to continue while limited stock-specific risk definable opportunities are available.

Select Auto, banking, and Midcap energy stocks look attractive from a risk perspective. Expect continuous selling pressure in the Metals space.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:

Markets witnessed a roller coaster ride till mid-session before rebounding to comfortably settle in positive territory at close on hectic buying activity in IT, automobile & realty stocks. The fall in the crude oil prices gave some respite to the market, although concerns of persistent FII selling and rising bond yields in the US will continue to keep traders on the edge.

Technically, for the last three days, the market has been witnessing non-directional activity. For Nifty, 15,400 and 15,600 are the important levels to watch out and below the same, the index could slip up to 15,340-15,300.

On the flip side, 15,600 would be the key breakout level for the bulls. Above which, the index is likely to hit the level of 15,720-15,800.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas

The Nifty has stepped into a short-term consolidation mode recently & accordingly it is witnessing range-bound action. The index witnessed sharp swings from 15,400-15,600 on June 23. On the higher side, 15,670-15,700, which was earlier acting as a support zone, is now posing as a resistance zone as per the principle of role reversal.

The Nifty is facing selling pressure as it is approaching this area. Unless the level of 15,700 gets taken out on a closing basis, the index is expected to stay in a consolidation mode.

On the downside, 15,400-15,360 is the near-term support zone, below which the index can test the recent low near 15,183.

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