NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 20 JUN 2024

Key Indices Performance:

• Sensex:
  • Closed at 77,337, up by 36 points.
• Nifty:
  • Closed at 23,516, down by 41 points.

Market Summary:

The Indian benchmark indices experienced a volatile session on June 19, with the Sensex marginally up and the Nifty closing lower. Despite the choppy trading, the overall sentiment remains cautiously optimistic with a short-term bullish outlook, particularly in banking stocks.

Intraday Analysis:

• Nifty Movement:

  • The Nifty index remained range-bound between 23,450 and 23,650, eventually closing at 23,516.
  • The index formed a Bearish Engulfing candle on the daily chart, indicating a potential short-term reversal.
  • There is a bearish divergence in RSI, suggesting a temporary pause in the uptrend.
  • Support is expected at the 55-hour EMA (23,340), with resistance at today’s high (23,660).

• Bank Nifty:

  • Continued strong momentum, approaching 52,000.
  • Immediate support is in the 51,000-50,900 range.
  • The index is in a buy mode, with targets of 52,100-52,600.

Sector Performance:

• Top Performers:

  • Banking Sector: Up by 2%, led by HDFC Bank, Axis Bank, ICICI Bank, IndusInd Bank, and Kotak Mahindra Bank.
  • IT Sector: Increased by 0.4%.

• Lagging Sectors:

  • Auto, Capital Goods, Metal, Oil & Gas, Power, Realty: All down by 1-3%.
  • Energy and Realty: Corrected the most during the session.

Midcap and Smallcap Indices:

• BSE Midcap Index: Fell by 1%.
• BSE Smallcap Index: Shed 0.6%.

Market Breadth:

• Advancers: 1430 shares
• Decliners: 1969 shares
• Unchanged: 62 shares

Top Gainers:

1. HDFC Bank
2. Axis Bank
3. ICICI Bank
4. IndusInd Bank
5. Kotak Mahindra Bank

Top Losers:

1. Titan Company
2. Maruti Suzuki
3. Larsen & Toubro (L&T)
4. Hindalco
5. Bharti Airtel

Technical Outlook:

• The short-term trend for the Nifty remains strong as long as it sustains above the 55-hour EMA (23,340).
• Potential upward target in the short term is 23,800 and beyond.
• Bank Nifty’s strong momentum is expected to continue, making it a favorable buy on dips.

Conclusion:

Today’s trading session was characterized by volatility, with mixed performances across various sectors. While banking and IT sectors provided support, other sectors such as auto, capital goods, and realty dragged the indices down. The Nifty’s formation of a Bearish Engulfing candle suggests a cautious approach in the near term, though the overall market sentiment continues to favor short-term bullish trades, particularly in banking stocks. Investors should watch for support levels and possible upward targets in the coming sessions.