NIFTY OUTLOOK & OPTION CALL PUT TRADING TIPS FOR 27 JUN 2024

Key Highlights:

• Sensex Performance: Up by 620 points, a gain of 0.80%, closing at 78674.
• Nifty Performance: Up by 147 points, a gain of 0.62%, closing at 23868.

Market Overview:

• Sectoral Performance:
  • Gainers: Energy, FMCG, Banking
  • Losers: Metal, Auto, Realty
• Broader Indices: Midcap index down by 0.30%, Smallcap index ended flat.

Detailed Analysis:

• Nifty Movement:

  • Opened flat but gained momentum, closing near the day's high at 23,868.80.
  • Follow-through buying observed post consolidation range breakout.
  • Short-term target: 24,150.
  • Support zone: 23,700 – 23,680 (recommended as buying opportunity).
  • Momentum indicators (daily and hourly) are in sync, suggesting continued momentum.

• Bank Nifty Movement:

  • Continued uptrend, nearing the 53,000 mark.
  • Immediate resistance: 53,660.
  • Crucial support: 52,300 – 51,900.
  • Buy-on-dip approach advised, with strong support at 52,500-52,400.
  • Aggressive put writing at lower levels indicates robust support.

Stock Performance:

• Top Gainers:

  • Reliance Industries
  • UltraTech Cement
  • Bharti Airtel
  • ICICI Bank
  • Grasim Industries

• Top Losers:

  • Apollo Hospitals
  • Bajaj Auto
  • M&M
  • Tata Steel
  • Hindalco Industries

Sector Performance:

• Upward Movers:

  • Bank, Oil & Gas, Telecom, Media, FMCG (up by 0.3-2%)

• Downward Movers:

  • Auto, Metal, Realty (down by 0.7-1.5%)

Market Sentiment:

• Breadth: 1634 shares advanced, 1763 shares declined, 85 shares unchanged.
• Profit Booking: Expected due to rally driven by select heavyweights.
• Derivative Expiry: Volatility anticipated due to monthly expiry of June derivatives contracts.

Strategic Recommendations:

• Continue with a “buy on dips” strategy, focusing on specific sectors and themes for stock selection.
• Monitor Nifty and Bank Nifty for potential buying opportunities near support zones.

Summary:

The Indian benchmark indices reached record closing highs on June 26, driven primarily by selective heavyweights like Reliance Industries and strong performances in sectors like banking, FMCG, and energy. Despite mixed sectoral trends and pressure in mid and smallcap indices, the broader market sentiment remains cautiously optimistic. Volatility is expected ahead of the monthly derivatives expiry, reinforcing the recommendation to adopt a strategic buy-on-dips approach.