NIFTY WEEKLY REPORT & OUTLOOK FOR 10 JUN 2024

Overview

Indian benchmark indices extended their rally for the third consecutive session on June 7, with the Nifty closing around 23,300. The Sensex surged by 1,618 points, reaching 76693, while the Nifty rose by 468 points, closing at 23290. This bullish momentum reflects a positive sentiment across the market, driven by several favorable factors.

Nifty Analysis

• Opening and Closing: Nifty opened flat but gradually inched higher throughout the day, ending with a substantial gain of 469 points.
• Technical Indicators:
  • On the daily charts, the Nifty has shown a V-shaped recovery following a sharp decline earlier in the week, regaining all lost ground.
  • The index is now close to its previous all-time high of 23,338, suggesting bullish momentum.
  • Support Zone: Dips towards the 22,800 – 22,700 range are considered buying opportunities.
  • Resistance: Psychological resistance at 23,500 may lead to profit booking.
• Trend: The short-term trend is highly positive, with potential movement towards 23,500-23,600. Profit booking might occur if the index falls below 23,000.

Bank Nifty Analysis

• Performance: Bank Nifty continued its pullback but remains below its previous all-time high of 51,133.
• Support and Resistance:
  • Buying opportunities are seen in dips towards the 49,500 – 49,000 range.
  • Immediate hurdle stands at 51,133.
• Trend: The pullback is likely to persist, supported by overall market stability and positive economic indicators.

Market Sentiment

• Economic Factors:
  • Stability within the coalition government and the RBI's upward revision of the FY25 growth forecast to 7.2% have fueled a broad-based rally.
  • Despite sticky inflation, investors anticipate the MPC (Monetary Policy Committee) is closer to an easing cycle.
• Sector Performance:
  • All sectoral indices closed in the green, with notable gains in auto, IT, power, telecom, and metal sectors (up 2-3%).
  • The BSE midcap index increased by 1.2%, while the smallcap index rose by 2%.
• Market Breadth:
  • Advances: 2,598 shares
  • Declines: 801 shares
  • Unchanged: 76 shares

Top Gainers and Losers

• Top Gainers:
  • M&M
  • Wipro
  • Tech Mahindra
  • Infosys
  • UltraTech Cement
• Top Losers:
  • SBI Life Insurance
  • Tata Consumer Products

Outlook

The Indian market continues to exhibit strength, with significant gains in key indices. The recovery in Nifty and Bank Nifty, backed by economic stability and positive forecasts, points to a sustained bullish trend. Investors are advised to consider buying on dips, particularly in the identified support zones. Profit booking is expected near the psychological resistance levels, but overall, the market sentiment remains optimistic.

As the market approaches previous all-time highs, careful monitoring of support and resistance levels is crucial for making informed trading decisions.