NIFTY OUTLOOK FOR 12 JUN 2024

Overview: Indian benchmark indices experienced a volatile trading session on June 11, ultimately ending on a flat note. The market sentiment remained uncertain, with indices showing choppy movement throughout the day. Despite opening with a positive bias and initial gains, intraday weakness emerged, particularly near the hurdle of 23400 levels for the Nifty, leading to a reversal of the day's gains. The Sensex closed marginally lower, down 33 points at 76,456, while the Nifty managed to close with a minor gain of 5.60 points at 23264.

Key Highlights:

• The Nifty encountered resistance at the 23400-23500 levels, marked by the 1.382% Fibonacci projection, weekly hanging man pattern, and the opening downside gap of June 4. This resistance zone posed challenges for sustaining new all-time highs, hinting at the possibility of a minor downward correction in the short term. Immediate support for Nifty was identified at 23050 levels.
• Market sentiment remained sideways, with no clear directional move observed. A breakout from the 23150-23350 range was suggested to signal the future market direction. A decisive move above 23350 could potentially lead Nifty towards 23600, while support below 23150 was identified at 23000-22900 levels.
• The BankNifty Index traded sideways, failing to surpass the 50000 mark, where significant call side open interest was built up. A breakout above 50000 could trigger short covering towards the 50500/51000 levels. The overall undertone for BankNifty remained bullish, with a recommended buy-on-dip strategy. Support was noted at 49000, where significant put side open interest was observed.

Sectoral Performance:

• Selling pressure was evident in sectors such as banking, FMCG, healthcare, and metals, while capital goods, oil & gas, and realty sectors showed resilience, each posting gains of 1 percent.
• Top gainers on the Nifty included ONGC, L&T, Adani Ports, Maruti Suzuki, and Tata Motors, while Kotak Mahindra Bank, Dr. Reddy's Labs, Asian Paints, Reliance Industries, and Divis Labs registered losses.

Market Breadth:

• Market breadth depicted a mixed picture, with 2246 shares advancing, 1193 shares declining, and 70 shares remaining unchanged.
• The BSE midcap index rose by 0.7 percent, while the smallcap index added nearly 1 percent, indicating broader market strength.

Conclusion: The Indian stock market exhibited volatility and ended the day on a flat note, with indices struggling to maintain gains amidst resistance at key levels. Uncertainty prevailed regarding the future direction, with the market awaiting a decisive breakout to confirm the next trend. While certain sectors showed resilience, others faced selling pressure, reflecting the mixed sentiment among investors.