NIFTY OUTLOOK & NIFTY OPTION TRADING TIPS FOR 14 JUN 2024

Market Overview

Indian benchmark indices ended higher for the third straight session on June 13, 2024. The Sensex gained 204 points (0.27%) to close at 76,810, while the Nifty rose 75 points (0.33%) to settle at 23,398. Despite the gains, the markets remained range-bound throughout the day.

Index Performance

• Sensex: 76,810 (+204 points / +0.27%)
• Nifty: 23,398 (+75 points / +0.33%)
• Nifty Close: 23,399
• Market Breadth:
  • Advances: 2048
  • Declines: 1371
  • Unchanged: 80

Sectoral Performance

• Gainers:
  • Realty: Top performer of the day, supported by morning gains.
  • Information Technology (IT): Showed strong performance, up 1%.
  • Capital Goods: Rose by 2%.
• Laggards:
  • Media: Witnessed profit booking correction after a recent rally, down 1%.
  • Fast-Moving Consumer Goods (FMCG): Fell by 0.6%.
  • Energy: Lagged behind other sectors.

Stock Performance

• Top Gainers:
  • Shriram Finance
  • HDFC Life
  • Divis Labs
  • M&M
  • Titan Company
• Top Losers:
  • HUL
  • Power Grid Corp
  • Axis Bank
  • Britannia Industries
  • Eicher Motors

Broader Market Indices

• BSE Midcap: Up nearly 1%
• BSE Smallcap: Up nearly 1%

Market Insights

• The markets exhibited a mixed trend sector-wise. While realty and IT sectors led the gains, FMCG and energy sectors underperformed.
• Mid and small-cap indices continued their streak of outperformance, each rising by approximately 0.60%.
• The Nifty displayed a time-wise correction, with signs indicating that this trend may continue. It is suggested to focus on stock-specific trading, particularly in agriculture-related stocks, sugar, chemicals, and select defense stocks for long positions.

Technical Analysis

• Nifty Resistance Levels: 23,480
• Nifty Support Levels: 23,300
• The Index formed a bearish candle at record levels and exhibited a bearish divergence on the hourly timeframe, suggesting a loss of positive momentum.

Recommendations

Investors are advised to focus on stock-specific opportunities, particularly in the following themes:

• Agriculture-related stocks
• Sugar stocks
• Chemical stocks
• Select defense stocks

Given the current market conditions, staying attuned to sectoral performance and resistance/support levels can help in making informed trading decisions.