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Outlook on the Nifty, Sensex and Nifty Bank for June 26: Benchmark indices scaled new highs in trades on Tuesday backed by aggressive buying in the private banking shares. The S&P BSE Sensex hit a new high at 78,165, the Nifty at 23,754 and the Bank Nifty at 52,747.
The Nifty 50 index seems on course to test its super trend line resistance around 23,850 levels on the daily scale. Meanwhile, the weekly chart shows that the near-term trend is likely to remain upbeat as long as the index holds above 23,600 levels.
Meanwhile, the BSE Sensex crosses a key yearly Fibonacci hurdle on Tuesday. The BSE benchmark index may target 79,940 – 81,750 levels in the year ahead. On Wednesday, the Sensex is likely to swing in the range of 77,620 – 78,490; with interim support expected around 77,785 and 77,700 and resistance likely around 78,320 and 78,400 levels.
FIIs trading activity in F&O
In the derivatives segment, FIIs net bought index futures for the 12th straight trading session. On Tuesday, FIIs added 39,108 net longs in index futures for an investment of Rs 2,698.63 crore. FIIs aggressively bought into Nifty and Bank futures – a total of 18,991 and 19,459 contracts, respectively.
As a result, FIIs index futures long-short ratio jumped to 1.59, with net index longs at 61.45 per cent and index shorts at 38.55 per cent.
On the other hand, DIIs (Domestic Institutional Investors) and retail investors held net short positions index futures at 62.05 per cent and 57.49 per cent.
Trading strategy for Wednesday, June 26 – Should you be a buyer or seller of stocks today? Here’s what market experts recommend:
Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities
Call writers (Bears) exiting at the 23,500 Strike coupled with strong put writing at the 23,600 in Nifty, led the steady intraday up move in the Nifty on Tuesday. The call writers, the Bears, (1.87 lakh contracts) lead the put writers, the Bulls, (1.50 lakh contracts) marginally at the 23,700 Strike and the option activity at this strike will provide cues about Nifty’s future direction.
On the Bank Nifty, all Strikes from 51,000 until 52,000 saw call writers (Bears) exiting and put writing, leading to the strong up move in Bank Nifty yesterday. The resistance for Bank Nifty now shifts to 53,000 & the option activity at this Strike will provide cues about Bank Nifty’s future direction.
Om Mehra, Technical Analyst, SAMCO Securities
The Nifty broke the crucial 23,670 resistance and surpassed the psychological 23,700 mark. The Nifty’s three inside-up patterns highlight bullish momentum. Nifty did not even retrace to the 23.6 per cent and inched higher, highlighting the index’s strong bullish outlook.
The Bank Nifty has marked a new lifetime high of 52,746.50. This upward move confirms a breakout from the megaphone pattern on the daily timeframe. The session’s opening and low levels were almost identical, indicating strong buying interest from the start. The primary trend remains firmly upward, suggesting that any pullback towards the 52,400-52,500 range would be a buying opportunity. The daily Relative Strength Index (RSI) stands robust at 70 levels.
Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates
Technically, the Nifty broke out of the short-term consolidation range of 23,330 – 23,670. As per this breakout, the rally could extend towards 24,000 levels. On the downside, 23,670 will act as immediate support for the index.
The Bank Nifty has crossed the short-term trend line resistance and sustained above 52,000 hurdle, indicating strength. Thus, as long as index holds above 52,000 levels, buy-on-dips strategy should be adopted. On the higher side, 53,000 will act as an immediate hurdle for the Bank Nifty.
Rupak De, Senior Technical Analyst, LKP Securities
The Nifty moved above 23,700 to make a new all-time high of 23,754, showing resilience amid global sluggishness. Put writers were very active at 23,600 and 23,700, while call writers unwound their positions, causing the PCR to rise. In the short term, the trend might remain strong as long as it stays above 23,500. On the higher end, the Nifty might continue moving towards 24,000 in the near term.
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities
The Bank Nifty index broke above the resistance of 52,000, where the highest open interest was built up on the call side. The index is trading in a strong uptrend with higher highs and higher lows intact on the daily chart. The support now stands at 52,000, and intraday dips should be viewed as a buying opportunity for targets of 53,000/53,500.