June 10th 2024 Stock Market analysis

Nifty 50 and Sensex End 3-Day Winning Streak Amid Global Weakness; Mid and Small Caps Outperform

Indian stock market benchmarks, the Sensex and Nifty 50, ended their three-day winning streak on Monday, June 10, due to profit booking at higher levels amid weak global cues. With the Lok Sabha elections and government formations complete, market focus has shifted to global factors and fundamentals. Concerns over high valuations, delayed rate cuts, and a lack of fresh positive triggers continue to limit market upside.

Following the RBI's decision to maintain the status quo on the repo rate and policy stance on Friday, attention is now on the US Fed's decision on Wednesday. However, strong US jobs data for May has dampened hopes for an imminent rate cut from the Fed. Both Sensex and Nifty 50 opened higher and hit record highs in intraday trade but closed lower due to profit booking and weak global sentiment.

On Monday, major European markets saw a selloff, impacting sentiment in Asian markets, following French President Emmanuel Macron's unexpected announcement to dissolve the parliament and call for fresh elections later this month.

The Sensex opened at 76,935.41, up from its previous close of 76,693.36, and reached a new high of 77,079.04 during the session. It eventually closed 203 points, or 0.27%, lower at 76,490.08. The Nifty 50 opened at 23,319.15, up from its previous close of 23,290.15, and hit a fresh all-time high of 23,411.90 before closing 31 points, or 0.13%, lower at 23,259.20.

Technical Outlook on 11th June

Nifty may expect an immediate support near 23167 then 23075 and resistances are 23351 then 23443. Now the nifty is looking at a profit booking.

Bank Nifty may expect an immediate support near 494965 then 49150 and resistances are  50096 then 50411. Now the bank nifty is looking at a profit booking.

Derivative Outlook on 11th June

PCR Analysis: Nifty PCR-OI has decreased with nifty has   negative which shows CALL WRITING.

Open Interest Analysis: Nifty future June contract OI has decreased with negative close which shows Long Unwinding.

Cost of Carry Analysis: Nifty June month contract has ended in low compare with July contract and low range compare with previous sessions which  indicates a profit booking from higher levels.

India VIX Analysis: India VIX has closed at 16.40 vs 16.88 (DoD) basis which shows decrease in volatility.

‍Wardwizard Innovations Soars 20% on Securing $1.3 Billion EV Contract from Beulah International

Shares of Wardwizard Innovations & Mobility Limited surged by 20%, hitting the upper circuit, following the company's announcement of a substantial order worth $1.29 billion (Rs 10,768 crore) from Beulah International Development Corporation, a Philippines-based firm. Listed on the BSE, the EV maker will supply electric two-wheelers and three-wheelers for both commercial and passenger segments under this deal, and will also develop four-wheeler commercial vehicles for the Philippine market. Beulah International, a leading integrator specializing in sustainability and renewable energy, partnered with Wardwizard to support the Philippine government's Public Utility Vehicle Modernisation Programme (PUVMP), led by the Department of Transportation. This initiative aims to enhance daily transportation by replacing outdated petrol and diesel vehicles with modern electric alternatives. As of 12:19 pm, Wardwizard shares were locked at the 20% upper circuit at Rs 62.71 on BSE. Over the past year, the stock has gained 28%, slightly outperforming the Sensex's 22% return during the same period.