June 24th 2024 Stock Market analysis

Taking Stock: Market ends higher amid volatility; auto, FMCG, capital goods shine

Indian benchmark indices ended higher in a volatile session on June 24, with the Nifty managing to hold above 23,500, buoyed by gains in the auto, capital goods, power, and FMCG sectors.

At close, the Sensex rose by 131.18 points or 0.17 percent to 77,341.08, while the Nifty climbed 36.75 points or 0.16 percent to 23,537.85.

Despite a weak start, the market rebounded in the early hours, turning positive in the first half and maintaining its upward momentum in the second half, led by power, auto, and FMCG sectors.

Top Nifty gainers included M&M, Shriram Finance, Power Grid Corporation, Sun Pharma, and Grasim Industries. In contrast, Cipla, IndusInd Bank, Adani Ports, Coal India, and Tata Steel were among the top losers.

Sector-wise, capital goods, auto, FMCG, telecom, and power indices rose by 0.5-1 percent, while metal, oil & gas, PSU Bank, and media indices fell by 0.5-1 percent. The BSE midcap and smallcap indices each added 0.3 percent.

Nearly 300 stocks reached their 52-week high on the BSE, including ICICI Bank, Shriram Finance, Godrej Properties, Cummins, JSW Energy, CG Power, Indian Hotels, Petronet LNG, Polycab India, Oil India, and Samvardhana Motherson International, among others.

Technical Outlook on 25th June

Nifty may expect an immediate support near 23433 then 23329 and resistances are 23641 then 23745. Now the nifty is looking at a positive range bound trade.

Bank Nifty may expect an immediate support near 51376 then 51049 and resistances are  52030 then 52357. Now the bank nifty is looking at a positive range bound trade.

Derivative Outlook on 25th June

PCR Analysis: Nifty PCR-OI has increased with nifty has positive which shows PUT WRITING.

Open Interest Analysis: Nifty future June contract OI has decreased with positive close which shows Short Covering.

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

India VIX Analysis: India VIX has closed at 14.06 vs 13.18 (DoD) basis which shows increase in volatility.‍

IREDA Shares Jump 4% Following ₹1,500 Crore Bond Issuance

‍On June 24, shares of the Indian Renewable Energy Development Agency (IREDA) surged over 4 % after the company announced raising ₹1,500 crore through a bond issuance. The state-run company's bond issuance comprised a base issue of ₹500 crore and a green shoe option of ₹1,000 crore. According to IREDA's exchange filing, the issue was oversubscribed by 2.65 times. The funds were raised at an annual interest rate of 7.44 percent for a tenure of 10 years and two months.

We are pleased with the overwhelming response to our bond issuance. The 2.65 times oversubscription underscores the trust and confidence investors have in IREDA’s vision and its crucial role in driving renewable energy growth in the country. This successful capital raising will enable us to further support green energy projects, contributing to India’s goal of achieving a 500 GW non-fossil fuel installed capacity target by 2030," said Shri Pradip Kumar Das, Chairman & Managing Director.

The stock of the state-run renewable energy financier received a boost following its inclusion in the FTSE All World Index, with the adjustment taking effect during the June 21 session. IIFL Alternate Research had predicted inflows of $57 million into IREDA shares, causing a sharp surge in the final 30 minutes of the trading session as the FTSE adjustments were implemented.

IREDA, a Mini Ratna (Category - I) PSU under the Ministry of New and Renewable Energy, provides financial assistance and other services to projects focused on renewable energy sources and energy efficiency/conservation.

Brokerage firm Choice Broking had earlier assigned a ‘buy’ rating to IREDA stock, with a target price of ₹203 per share. “IREDA is currently trading at ₹181, having recently formed a cup & handle pattern with a notable surge in trading volume. This breakout suggests potential further upward movement, with projected price targets set at ₹203. A significant support level is identified near ₹170 on the downside," the firm noted.

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