NIFTY WEEKLY REPORT & OUTLOOK FOR TRADING ON `1 JUL TO 5 JUL 2024

Indian benchmark indices ended lower in a volatile session on June 28.

Key Indices Performance

• Sensex: Down 210.45 points or 0.27% at 79,032.73
• Nifty: Down 33.90 points or 0.14% at 24,010.60

The markets traded within a narrow range throughout the day, closing nearly unchanged after a recent surge. Initially positive, the session saw profit-taking in key heavyweights that offset early gains, resulting in the Nifty settling around 24,009.30 levels, down by 0.15%.

Sector Performance

Despite the overall decline, sectors like energy, pharma, and metal ended in positive territory, contributing to gains of around 0.5%-0.9% in broader indices. Here’s a closer look:

• Healthcare, Metal, PSU Bank, Oil & Gas, Realty: Up 0.5%-1%
• Bank Index: Down 1%
• Capital Goods Index: Shed 0.4%
• BSE Midcap and Smallcap Index: Added 0.5% each

Stock Performance

• Top Gainers:
  • ONGC
  • Dr Reddy's Labs
  • Reliance Industries
  • SBI Life Insurance
  • Tata Motors
• Top Losers:
  • IndusInd Bank
  • Bharti Airtel
  • Axis Bank
  • ICICI Bank
  • Kotak Mahindra Bank

Market Sentiment and Future Outlook

Looking ahead, there’s a possibility of consolidation in the benchmark index following recent upward movements, with support expected around the 23,700-23,900 range on any declines. Banking stocks are currently consolidating, while sectors such as IT, energy, and FMCG are buoying the index higher. Similar market dynamics are anticipated in the upcoming sessions, so traders should strategize accordingly.

India’s optimism about the upcoming budget and upgrades in GDP forecasts continues to provide momentum in the market. Large caps are in favor due to the comeback of Foreign Institutional Investors (FIIs). However, profit booking ensued at the end of the week at higher levels, especially in financials and private banks, which dragged the market down after the recent rally.

BankNifty Index Analysis

The BankNifty index experienced its first meaningful correction after a nonstop rally in the past week. For the selling pressure to continue, there needs to be follow-up selling; otherwise, the index may get stuck in a consolidation range.

• Immediate Support: 52,000 (highest open interest on the put side)
• Immediate Resistance: 52,700-53,000 zone

The index formed a small-bodied red candle, breaking a four-day winning streak. The sentiment continues to remain strong as the index closed significantly above the critical moving average. However, after a continuous rally, the index looks a bit heavy and might attract profit booking if Nifty sustains below 24,000.

• Support Levels: 23,850 / 23,700 in the short term upon a decisive fall below 24,000.
• Resistance Levels: 24,200 on the higher end.

Market Breadth

• Advancing Shares: 1,929
• Declining Shares: 1,449
• Unchanged Shares: 80