June 27th 2024 Stock Market analysis

Market Reaches New Milestones on Expiry Day: Nifty Bank Surpasses 53,000

Indian benchmark indices rallied for the third consecutive session on June 27, with Nifty crossing 24,000 for the first time ever, driven by gains in Information Technology and energy stocks. At the close, the Sensex was up 568.93 points or 0.72 % at 79,243.18, and the Nifty was up 175.70 points or 0.74 % at 24,044.50. About 1128 shares advanced, 2240 shares declined, and 93 shares remained unchanged.

The BSE Sensex and Nifty50 indices reached new record highs of 79,396.03 and 24,087.45, respectively.

The Nifty Bank index also hit a fresh record high of 53,180.75.

After a weak start, the market rebounded in the initial hours and extended its gains throughout the day, achieving fresh milestones. UltraTech Cement, Grasim Industries, LTIMindtree, Wipro, and NTPC were among the top gainers on the Nifty, while Shriram Finance, L&T, Eicher Motors, Bajaj Auto, and Divis Lab were among the losers. Sector-wise, the IT and Power indices each rose by 1.7 percent, while the PSU Bank index fell by 1 percent.

The BSE midcap index ended flat, while the smallcap index shed 0.5 percent.

Technical Outlook on 28th June 

Nifty may expect an immediate support near 23903 then 23762 and resistances are 24185 then 24326. Now the nifty is looking at a mixed trade.

Bank Nifty may expect an immediate support near 52541 then 52271 and resistances are  53081 then 53351. Now the bank nifty is looking at a mixed trade.

Derivative Outlook on 28th 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 decreased with positive close which shows Short Covering.

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

India VIX Analysis: India VIX has closed at 14.15 vs 14.05 (DoD) basis which shows increase in volatility.

Ambuja Cements Board Approves Merger with Adani Cementation

Billionaire Gautam Adani-owned Ambuja Cements announced on June 27 that its board has approved the merger with Adani Cementation Limited, a subsidiary of Adani Enterprises.

As part of the proposed scheme, Adani Enterprises will receive 8.7 million shares of Ambuja Cements. The merger aims to consolidate cement capacity within the group, bringing synergistic benefits for all stakeholders, according to the company’s regulatory filing.

The merger will enable Adani Enterprises to absorb Ambuja Cements' business and enhance its manufacturing capacity for more effective and seamless operations. Additionally, Adani Cementation's limestone resources will further bolster Ambuja’s consolidated limestone reserves.

On June 27, shares of Ambuja Cements closed 0.56 % higher at Rs 660.55 apiece on the BSE. Earlier, on June 13, Ambuja Cements announced it would acquire a 100 % stake in Penna Cement Industries Ltd (PCIL) for an enterprise value of Rs 10,422 crore. This acquisition aligns with Adani's target to achieve a cement production capacity of 140 million tonnes per annum (MTPA) by 2028.

Adani aims to capture a 20 percent market share by FY28, driven by strong demand for building materials in India. "By acquiring PCIL, Ambuja is poised to expand its market presence in South India and reinforce its position as a pan-India leader in the cement industry," the company stated.

In April, Ambuja Cements also signed an agreement to acquire a grinding unit in Tamil Nadu for Rs 413.75 crore, further expanding its presence in the South Indian market.

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