June 19th 2024 Stock Market analysis

Market Fails to Sustain Record High, Closes Mixed; Banks Outperform

Indian benchmark indices ended mixed on June 19 after a highly volatile session, despite hitting fresh all-time highs intraday. The Sensex gained 36.45 points (0.05%) to close at 77,337.59, while the Nifty dropped 41.90 points (0.18%) to finish at 23,516.

Boosted by positive global cues, the benchmark indices opened at fresh record highs but quickly erased gains and fluctuated throughout the session, ultimately closing with marginal changes.

Top Nifty gainers included HDFC Bank, Axis Bank, ICICI Bank, IndusInd Bank, and Kotak Mahindra Bank. Conversely, Titan Company, Maruti Suzuki, L&T, Hindalco, and Bharti Airtel were among the losers.

Sector-wise, only banking (up 2%) and IT (up 0.4%) indices ended in the green. Other sectors, including auto, capital goods, metal, oil & gas, power, and realty, declined 1-3%.

The BSE Midcap index fell 1%, and the Smallcap index shed 0.6%. The Sensex and Nifty reached fresh all-time highs of 77,851.63 and 23,664, respectively. Additionally, the Bank Nifty and Nifty Midcap indices hit record highs of 51,957 and 55,679.60, respectively.

More than 300 stocks on the BSE, including Axis Bank, Cipla, Jindal Steel, Coromandel International, Oracle Financial, Whirlpool, GMR Airports, Torrent Pharma, Federal Bank, Cummins India, Exide Industries, and UNO Minda, touched their 52-week highs.

Technical Outlook on 20th June

Nifty is likely to find immediate support around 23,391 and then at 23,266, with resistance levels at 23,641 and 23,766. Currently, Nifty appears to be experiencing profit booking.

Bank Nifty is expected to have immediate support near 50,110 and then at 49,780, with resistance levels at 50,771 and 51,101. At present, Bank Nifty also seems to be undergoing profit booking.

Derivative Outlook on 20th 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 increased with negative close which shows Short Buildup.

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

India VIX Analysis: India VIX has closed at 13.71 vs 12.97 (DoD) basis which shows increase in volatility.

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