The Indian equity market ended on a positive note for the second consecutive day on June 24 amid volatility, with the Nifty closing at the 15,700 level.
At close, the Sensex was up 462.26 points or 0.88% at 52,727.98, and the Nifty was up 142.60 points or 0.92% at 15,699.30. For the week, BSE Sensex and Nifty50 added 2.6 percent each.
Amid supportive global cues, the Indian market opened in the green and stayed in the positive territory throughout the session. However, it witnessed some profit booking at higher levels.
“Mirroring a firm trend in the global market and in response to declining commodity prices, the domestic market maintained its positive trend,” said Vinod Nair, Head of Research at Geojit Financial Services.
“The up-move was supported by broad-based buying except in IT which remained under pressure post the downgrade of earnings forecast by Accenture.”
“We expect the market to showcase similar short-term rebounds until fresh trigger fuels the global concerns,” Nair added.
M&M, Hero MotoCorp, IndusInd Bank, Bajaj Finance, and HUL were among the top Nifty gainers. The losers were Tech Mahindra, Infosys, TCS, HCL Technologies, and Coal India.
Among sectors, Nifty Bank, Auto, Energy, Metal, PSU Bank, and FMCG indices were up 1-2 percent, while the Nifty Information Technology index shed nearly 1 percent.
Stock and sectors
On the BSE, the Auto index added 2 percent, while Oil & Gas, Power, Bank, Metal, and FMCG indices were up 1 percent each, while selling was seen in the Information Technology names.
The BSE midcap and smallcap indices added over 1.5 percent each.
A long build-up was seen in Strides Pharma Science, IDFC, and Dixon Technologies, while a short build-up was seen in Mindtree, Persistent Systems, and L&T Infotech.
Among individual stocks, a volume spike of more than 200 percent was seen in Havells India, Strides Pharma Science, and JK Cement.
On the BSE, Voltamp Transformers, Mahindra & Mahindra, and Kohinoor Foods touched their 52-week high. On the other hand, Hester Biosciences, Hindustan Zinc, Star Health, and Allied Insurance Company hit their 52-week low.
Outlook for June 27
Manish Shah, Independent Technical Analyst:
Nifty closed the week with an inside candle. On the weekly chart, we see a bullish Harami Pattern. As the pattern is a bullish reversal pattern, we can assume that Nifty will see some upsides in the days to come.
Also, on the weekly time frame, we see the candle closing at the high of the weekly range. This is a bullish development.
Meanwhile, on the daily charts, the Nifty has not made a new low since June 16, 2022. This reluctance of the market to trade below the lows even after six days suggests that the market is not in a mood to trade lower immediately. Nifty needs to break above 15,850 to signal a rally towards 16,200-16,300 levels. Support in Nifty is placed at 15,400. A break below the support and there could be a further drop to 15100-15000.
Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities:
Post correction over the past couple of weeks, equity markets ended this week with positive returns. Major key indices and most sectoral indices gained during the week.
The auto sector led the recovery amid softening in commodity prices. On the other hand, BSE Metal, BSE Energy and BSE Oil & Gas indices underperformed the broader markets.
Correction in crude oil prices from the recent peaks and softening in commodity prices offered some relief to the markets in an otherwise high global inflation environment.
Monsoon progress is an important factor to watch as a good monsoon would calm concerns with respect to food inflation. Equity markets in the near term are expected to continue reacting to news related to inflation, monetary policy, and commodity price movement.
Ajit Mishra, VP – Research, Religare Broking:
Markets edged higher for the second consecutive session, driven by firm global cues. After the gap up opening, the benchmark remained in a range and finally settled around the upper band of the same.
Healthy rebound financials, metals, and PSU banks aided sentiments. Consequently, the Nifty ended higher by 0.9% at 15,699 levels. The broader markets outperformed and ended higher in the range of 1.4-1.6%. Barring IT, all the other sectoral indices ended in the green.
Markets are witnessing consolidation after the sharp decline and awaiting some fresh triggers. Since we don’t have any major domestic events, global updates viz. market performance, crude movement, and easing of the geopolitical situation will remain on the participants’ radar.
We like auto, FMCG, and pharma for long trades while metals and PSU banks may continue to underperform. We recommend maintaining a sector/stock-specific approach and aligning the positions accordingly.
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