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 sector/stock-specific approach and aligning the positions accordingly.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas:
In the penultimate week, the Nifty had broken the support zone of 15700-15800. In the week gone by, it bounced back to test this area, which is now acting as a resistance zone.
Despite a strong start on June 24, the index couldn’t take out this barrier. As long as the index stays below this hurdle, it is expected to witness consolidation in the short term.
The hourly momentum indicator has a negative divergence, which also suggests further consolidation in the coming sessions. Thus unless the level of 15800 is crossed on a closing basis the Nifty can dip towards 15400 in the short term.
Ahammed MP, Chairman, Malabar Gold & Diamonds:
Pan India gold jewelry sales have improved 8-10% more than the previous year. A good rainy season has a positive impact on the agricultural sector. As for the common man, gold is a wearable investment. Hence, we see an increase in gold purchases in the coming quarter.
It is also the wedding season, and many GCC NRIs come home during this time, hence the demand for gold is higher. It is safe to say that there has been significant growth in the gold business.
Gold business in India has evolved significantly, there is more accountability now. This is a good sign. Government interventions have played a big part in bringing about positive changes in this industry. The gold trade sector is developing into a more organized structure
Deepak Jasani, Head of Retail Research, HDFC Securities:
Nifty closed higher for the day on June 24 and for the week aided by positive global cues but on lower than normal volumes suggesting lower participation by FPIs who have been sellers relentlessly in Indian markets. At close, Nifty was up 1.92% or 142.6 points at 15699.3.
Globally technology stocks were back in favour as the spectre of inflation receded due to commodity price falling. Advance decline ratio was sharply in the positive even as the Smallcap and Midcap indices outperformed the Nifty. Among sectors, Power, Auto and Telecom indices gained the most while IT was the sole loser.
Global equity funds saw their biggest outflows in nine weeks as investors piled into cash amid fears that the US economy could be headed for a recession. About $16.8 billion exited global stock funds in the week through June 22, with US equities seeing their first outflow in seven weeks at $17.4 billion, Bank of America Corp. said, citing EPFR Global data.
A breach of 15,886 on the Nifty next week could result in acceleration of the uptrend, while 15,557 needs to be protected on the downside.
Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities:
Post correction over past couple of weeks, equity markets ended this week with positive returns. Major key indices and most sectoral indices gained during the week.
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 recent peak 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 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.
Manish Shah, Independent Technical Analyst:
Nifty 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, 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 does suggest that the market is not in a mood to trade lower immediately. Nifty needs to break above 15850 to signal a rally to 16200-16300. Support in Nifty is at 15400. A break below the support and there could be a further drop to 15100-15000.
Bank Nifty closed the week sharply higher and it seems that the support at 32480-32000 seems to be holding. Bank Nifty seems to be a better buying opportunity than Nifty as the support is better defined. If Bank Nifty moves above 33,750 we should see some more upsides towards 34700-34800. Most socks within the banking space are in an accumulation phase.
We see a good quality positive divergence in Bank Nifty, thus raising a comforting thought there could be a sustained rally in Bank Nifty. The MACD has curled to though it still is in a sell mode. A break above 33750 will be a trigger to buy Bank Nifty.
Vinod Nair, Head of Research at Geojit Financial Services:
Mirroring a firm trend in the global market and in response to declining commodity prices, the domestic market maintained its positive trend.
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.
Indian rupee ended marginally lower at 78.34 per dollar on Friday versus previous closing of 78.31.
Market Close: Benchmark indices ended higher for the second consecutive day on June 24 with Nifty around 15700.
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. About 2332 shares have advanced, 899 shares declined, and 133 shares are unchanged.
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, auto, oil & gas, power, bank, metal and FMCG indices up 1 percent each, while selling was seen in the IT names.
The BSE midcap and smallcap indices added over 1 percent each.
Milind Mucchala, Executive Director, Julius Baer India
We have been slightly cautious about the Indian markets since the start of the calendar year, expecting 2022 to be a year of consolidation, with a painful H1 being followed by a better H2. While the uncertainty and the multiple moving parts may keep the markets on the tenterhooks for a couple of more months, we think this could be a good time to build up the investment portfolio.
Despite small trimmings expected in the economic growth/earnings estimates, India is still expected to have one of the fastest-growing economies/corporate earnings globally, with a strong macro-economic situation. Also, while FIIs have been big sellers in the markets in the past few months (one of the longest stretches of selling since GFC), a case of the winner’s curse (due to its strong outperformance), India will continue to remain an attractive investment destination once the risk appetite improves.
Post the recent correction, Indian equity market valuations have also turned more reasonable, moving closer to the historical long-term averages in terms of the P/E multiples. Hence, although the volatility can remain high in the near term, it presents an attractive opportunity to build up on equity exposure, as the healthy earnings momentum is expected to remain a key pillar for the markets.
Fineotex Chemical board approves fund raising up to Rs 200 crore
Fineotex Chemical board approved fund raising up to Rs 200 crore, in one or more tranches, on such terms and conditions as it may deem fit, by way of issuance of Securities, through one or more permissible mode(s) including but not limited to a private placement, preferential issue, qualified institutions placement, follow-on public offering or a combination thereof, subject to shareholders’ approval and regulatory and other approvals, as may be required under applicable law.
Fineotex Chemical was quoting at Rs 172.65, up Rs 5.55, or 3.32 percent.
NTPC starts commercial operations floating solar PV project
Consequent upon successful commissioning, last part capacity of 35 MW out of 92 MW Kayamkulam Floating Solar PV Project at Kayamkulam, Kerala is declared on Commercial Operation w.e.f. 00:00 Hrs. of 24.06.2022, NTPC said in its press release.
With this, standalone installed and commercial capacity of NTPC has become 54749.20 MW, while group installed and commercial capacity of NTPC has become 69114.20 MW, it added.
NTPC was quoting at Rs 136.85, up Rs 0.50, or 0.37 percent in the BSE.