NIFTY WEEKLY OUTLOOK & TIPS FOR NEXT WEEK 24 JUN 2024

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 Overview

On June 21, the Indian benchmark indices ended lower in a highly volatile session. The Nifty closed at 23,501, down 65 points or 0.28%. The Sensex also experienced a downturn, closing at 77,209, a decrease of 269 points or 0.35%. Despite the decline, the markets managed to pare some losses towards the end, mitigating the extent of the drop.

Market Dynamics

• Profit Booking: Investors partially booked profits following a six-session rally. This movement was influenced by weak global cues.
• Sectoral Performance:
  • Gainers: IT, Metal, Media, and Telecom sectors showed gains ranging from 0.5-1 percent.
  • Losers: Auto, FMCG, PSU Bank, and Realty sectors were down by 0.5-1 percent.
• Heatwave Impact: The ongoing heatwave in Northern India drove up consumer durables stocks, although the slow progress of the monsoon led to underperformance in the FMCG sector.
• Global Influence: Global markets were subdued, particularly due to weak guidance from Accenture, which led to profit booking in US tech stocks. However, domestic IT stocks saw buying interest as weaker earnings were anticipated by market participants.

Index Performances

• Sensex: Down by 269 points (0.35%) to 77,209.
• Nifty: Down by 65 points (0.28%) to 23,501.
• Nifty Bank: Exhibited a volatile session, ending flat. The index faces immediate resistance at 52,000, with the highest open interest on the call side. The support is placed at 51,000, where the highest open interest on the put side is noted.
• Midcap Index: Down by 0.3%.
• Smallcap Index: Ended flat.

Market Breadth

• Advances: 1611 shares.
• Declines: 1750 shares.
• Unchanged: 85 shares.

Key Performers

• Top Gainers on Nifty: Bharti Airtel, LTIMindtree, Adani Ports, Hindalco, Infosys.
• Top Losers on Nifty: Adani Enterprises, UltraTech Cement, BPCL, Tata Motors, Tata Consumer Products.

Weekly Trends

• Overall Performance: Despite the daily decline, both Sensex and Nifty posted minor gains of 0.2% each for the third consecutive week.
• Nifty Bank: Recorded the biggest weekly gain of 2024, up more than 3 percent, marking the longest gaining streak in 19 months (up for six consecutive weeks).
• Midcap Index: Gained 0.5% over the week.
• IT Sector: Best performing sectoral index for the week.

Upcoming Events

Investors are now looking forward to the Union Budget in July, hoping for a market-friendly budget that will boost economic activity and investment. Additionally, attention is on the upcoming GST meeting, where potential rationalization of GST rates in certain sectors is under discussion.

Conclusion

The Indian stock market experienced a mixed session with a notable decline after several days of gains. Profit booking, weak global cues, and sector-specific performances contributed to the market dynamics. As investors await the Union Budget and GST meeting, market sentiment remains cautiously optimistic.