The Indian market bounced back with handsome gains on June 24 after closing in the red in the previous trading session. The S&P BSE Sensex rallied nearly 400 points while the Nifty closed a shade below 15,800 on the June F&O expiry day.
The Sensex closed 392 points higher at 52,699, while the Nifty50 gained 103 points to end at 15,790.
On the sectoral front, buying was seen in IT, banks, metals, and capital goods, while selling pressure was visible in energy, oil & gas, power, and utilities space.
“With Q1 of the current fiscal drawing to a close next week, technology stocks powered indices as the street bets on the IT sector to deliver the first set of earnings. Even as Reliance spelt out its roadmap and strategies at its AGM today, IT stocks quite clearly hogged the limelight today,” S Ranganathan, Head of Research at LKP Securities said.
“The twin listings today from the primary market too had a good opening day with both providing 25 percent gains to IPO investors from their issue price,” he added.
On the broader market front, the BSE midcap index was down 0.5 percent and the BSE smallcap index fell 0.2 percent, underperforming the benchmark indices.
The market held onto a crucial support zone despite a 2.3 percent fall in index heavyweight Reliance Industries on the F&O expiry day, which suggests that the upside momentum is likely to continue. The Nifty50 could well head towards 16,000 in the July series.
“On the day of the monthly expiry of F&O contracts, the market closed just below the crucial resistance of 15,800/52,800. We would see the levels of 16,050/16,150 (53,750) levels in the near term and the level of 15,670/52,300 would act as final stop loss for long positions,” Shrikant Chouhan, executive vice-president, Equity Technical Research at Kotak Securities said.
“The index giant Reliance Industries closed at the lowest point of the day, while other heavyweights like Infosys and TCS closed at the highest point of the day. The Bank Nifty also managed to close above the levels of 34800, which is positive for the broader market,” he said.
Here’s what experts suggest investors should do on June 25:
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The Nifty has gone sideways. The range is between 15,400 and 15,900. Unless we do not get past either level, we will not see a significant move.
While the bias is on the upside and there is still room for the index to conquer 16,100, a buy on dips approach is recommended.
Ashis Biswas, Head, Technical Research, CapitalVia Global Research Limited
The market witnessed some lacklustre movement but made an attempt to hold on to the support level of 15,800 on the Nifty. If the index trades above 15,800, it will be positive from a short-term perspective and momentum will continue.
As long as the Nifty stays above 15,800, the momentum could take the index towards 16,100-16,200. Momentum indicators like RSI, MACD to further strengthen in favour of a positive outlook.
Ajit Mishra, VP-Research, Religare Broking Ltd
Markets traded with a positive bias and managed to close half a percent higher on the monthly expiry day. After the fall on June 23, the benchmark opened with an uptick and inched gradually higher as the day progressed.
The prevailing consolidation in the index is largely in line with the global counterparts so participants should continue to keep a close watch on the world market for cues.
Despite the positive bias, we’re seeing restricted participation, so traders should focus more on the selection of sectors and stocks. On the index front, a decisive break above 15,900 in the Nifty would pave the way for an up move else consolidation will continue.
Rohit Singre, Senior Technical Analyst, LKP Securities
The index opened gap-up and managed to hold its bullish stream throughout the day. The Nifty formed a bullish candle on the daily chart after two consecutive red candles.
The support for the index have again shifted towards 15,725-15,650 zone and any dip will be a buying opportunity.
We may see some more bounce if the level holds, and the immediate hurdle is still at 15,900.
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