June 18th 2024 Stock Market analysis

Nifty Achieves All-Time High Close, Sensex Surges 300 Points; Positive Market Sentiment Prevails

Benchmark equity indices ended strong on June 18, with the NSE Nifty 50 closing at a record high for the fourth consecutive session. Experts attribute the robust market sentiment to a sense of policy continuity and strong global cues.

At the close, the Sensex was up 308 points or xx percent at 77,301, while the Nifty gained 92.30 points to reach 23,557. During the day, both indices scaled fresh record highs, with the Sensex touching 77,366 and the Nifty 23,579. Market breadth was positive, as 1,928 shares advanced, 1,603 shares declined, and 109 shares remained unchanged.

Nifty Realty and Nifty Bank led the gains, whereas the healthcare, pharma, metal, and FMCG sectors faced selling pressure. Notably, Shriram Finance, Power Grid Corporation, and Wipro contributed significantly to the gains in Nifty, while Maruti Suzuki, Dr. Reddy's, and Tata Steel were the major laggards.

Wipro shares closed 3 percent higher following the announcement of an extended partnership with US clothing brand Hanesbrands and a new collaboration with financial services company GBST. Defense stocks were particularly active, with Hindustan Aeronautics shares surging over six percent after receiving a 'Request For Proposal' from the Ministry of Defence for 156 light combat helicopters.

Kranthi Bathini of WealthMills Securities noted that the market is in a positive trend, with mid-cap and small-cap stocks likely to outperform the major indices. This outperformance is expected to be driven by individual stock performance rather than specific sectors. The broader market outperformed the headline indices, with the small-cap and mid-cap indices gaining 1 percent and 0.4 percent, respectively.

Technical Outlook on 19th June

Nifty is expected to find immediate support near 23,518, with additional support at 23,479. Resistance levels are anticipated at 23,596 and then 23,635. Currently, Nifty is experiencing mixed trading.

Similarly, Bank Nifty is expected to find immediate support near 50,110, with further support at 49,780. Resistance levels are projected at 50,771 and 51,101. Bank Nifty is also seeing mixed trading at the moment.

Derivative Outlook on 19th June

PCR Analysis: Nifty PCR-OI has decreased with nifty has positive which shows CALL BUYING.

Open Interest Analysis: Nifty future June contract OI has increased with positive close which shows Long Buildup.

Cost of Carry Analysis: Nifty June month contract has ended in low compare with July contract and high range compare with previous sessions which indicates a mixed trade.

India VIX Analysis: India VIX has closed at 12.97 vs 12.82 (DoD) basis which shows increase in volatility.

Shakti Pumps Surges 5% as INDIA Ratings Upgrades Long-Term Outlook

Shares of Shakti Pumps (India) were locked at a 5 % upper circuit at Rs 2,845 per share on June 18 after the company announced an upgrade to its long-term rating by INDIA Ratings & Research.

So far this year, Shakti Pumps' shares have more than doubled, rising over 178 percent and significantly outperforming the benchmark Nifty 50 index, which has gained only 8 percent during the same period. "We are pleased to inform you that INDIA Ratings & Research has upgraded our ratings for bank facilities based on recent developments, including our operational and financial performance," the company stated in an exchange filing.

The company's term loan due in FY25 has been upgraded to IND A+/Stable. Similarly, its long-term fund-based limits' rating has been upgraded, while the short-term rating remains at IND A+/Stable/IND A1. The company also received a new long-term rating for its non-fund-based limits, with the short-term rating affirmed at IND A+/Stable/IND A1.

Shakti Pumps India manufactures submersible pumps for domestic, industrial, horticultural, and agricultural use, operating internationally with exports to over 100 countries and branches in the USA, Australia, and UAE. In the quarter ending in March, Shakti Pumps posted a substantial increase in its consolidated net profit to Rs 89 crore, with revenues surging over three-fold year-on-year to Rs 609 crore.

During the quarter, the company also raised Rs 200 crore through a qualified institutional placement (QIP) process. A significant portion of these funds will be directed towards scaling up the production capacities of pumps, motors, inverters, and supporting structures, the company added.