The Nifty is in consolidation mode. But its a consolidation that is also slowly taking the index higher. The week gone by saw the index gain in four out of the five trading sessions. It first surpassed the resistance at 23,300, followed by 23,400. By closing on Friday, it now stands at the cusp of 23,500, which has been the major resistance for the index since it scaled newer peaks.
Yet, the index continues to make higher highs on the charts. 23,441 on Wednesday, 23,481 on Thursday and now 23,490 on Friday, which stands as the new record high for the Nifty. The market will resume trading after the long weekend on Tuesday.
The market now looks for directional cues as most major events are out of the way, including the election results, government formation, the RBI policy as well as the Fed rate decision.
It is just two more weeks for the April-June quarter to end, post which, companies would begin to release their quarterly business updates and earnings season would begin as well for the June quarter. The month of July would also see the tabling of the first Union Budget of the newly elected government, dates for which are yet to be confirmed. Sources told CNBC-TV18 that the budget presentation may happen on July 22.
For now, the action remains stock specific as the Nifty and the Nifty Bank both have important levels to cross before they head for the next leg of their rally on the upside.
Both foreign and domestic institutions were net buyers in Friday’s trading session in the cash market.
23,500 is the initial hurdle for the Nifty, which has been so in the last week. Once this is surpassed, the index can rally towards 23,900 – 24,000, said Ruchit Jain of 5paisa.com. He advises any dip towards support levels of 23,300, followed by 23,000 and 22,900 to be used as a buying opportunity.
Hrishikesh Yedve of Asit C Mehta Investment Interrmediates said that the index falls below 23,330, it can witness a bout of profit booking. However, a move towards 24,000 is seen only if the Nifty sustains above 23,500. Immediate support is at 23,000, followed by 22,760.
The market is currently witnessing a positive consolidation and as long as it remains above 23,200, the positive sentiment will continue, said Amol Athawale of Kotak Securities. He sees a move above 23,500 to take the Nifty towards 23,750 in the short term and the trend can change only on a slip below 23,200.
Among the two indices, the Nifty Bank turned out to be an underperformer last week, but managed to close above the mark of 50,000 for the first time after two weeks and only by just two points. The level of 50,000 has been the resistance for the Nifty Bank throughout the June series and chartists too believe that crossing that is imperative for it to move further higher towards its previous record high of 51,133. For the week, the Nifty Bank ended with gains of 0.4%.
The Nifty Bank witnessed strong put writing at the 50,000 strike along with the Call writers. The options activity at this strike will provide cues about the upcoming direction of the Nifty Bank, said Ashwin Ramani of SAMCO Securities.
Kunal Shah of LKP Securities maintained that the Nifty Bank will have to decisively surpass 50,200 to confirm an upside breakout towards levels of 51,000. The lower end support is between 49,500 – 49,400 and a break below that will open further downside towards 49,000, he added.
What Are The F&O Cues Indicating?
Nifty 50’s June futures added 0.6% or 77,650 shares in Open Interest on Friday. They are now trading at a premium of 1.05 points from 0.35 points earlier. On the other hand, Nifty Bank’s June futures added 1.6% or 38,055 shares in Open Interest on Friday. Nifty 50’s Put-Call Ratio is at 1.3 from 1.2 earlier.
Balrampur Chini is back in the F&O ban.
GMR Airports, Hindustan Copper, India Cements, SAIL, Sun TV continue to remain in the ban.
Nifty 50 on the Call side for June 20 expiry:
On the Call side, the Nifty 50 strikes between 23,450 and 24,000 have seen Open Interest addition for this Thursday’s weekly expiry.
| Strike | OI Change | Premium |
| 24,000 | 30.2 Lakh Added | 3.6 |
| 23,500 | 10.1 Lakh Added | 99.6 |
| 23,800 | 9.7 Lakh Added | 13.85 |
| 23,450 | 9.1 Lakh Added | 126.5 |
Nifty 50 on the Put side for June 20 expiry:
On the Put side, the Nifty 50 strikes between 23,000 and 23,500 have seen Open Interest addition for this Thursday’s expiry.
| Strike | OI Change | Premium |
| 23,400 | 22.1 Lakh Added | 88.4 |
| 23,300 | 21.1 Lakh Added | 57.4 |
| 23,000 | 16.7 Lakh Added | 16.9 |
| 23,500 | 14 Lakh Added | 131.7 |
These stocks added fresh long positions on Friday, meaning an increase in both price and Open Interest:
| Stock | Price Change | OI Change |
| ABB India | 6.72% | 11.43% |
| ICICI Prudential | 2.88% | 7.47% |
| ICICI Lombard | 4.29% | 5.72% |
| Cummins India | 3.00% | 5.28% |
| Adani Enterprises | 1.38% | 5.75% |
These stocks added fresh short positions on Friday, meaning a decline in price but an increase in Open Interest:
| Stock | Price Change | OI Change |
| Balrampur Chini | -2.32% | 13.78% |
| Wipro | -1.49% | 7.57% |
| Muthoot Finance | -1.68% | 7.20% |
| ICICI Bank | -0.54% | 5.64% |
| Indus Towers | -0.29% | 4.67% |
Short covering was seen in these stocks on Friday, meaning a decline in Open Interest but an increase in price:
| Stock | Price Change | OI Change |
| JK Cement | 1.71% | -10.99% |
| GMR Airports | 2.29% | -9.35% |
| Sun TV | 0.15% | -7.97% |
| Titan | 1.64% | -7.96% |
| Shriram Finance | 1.69% | -7.52% |
These are the stocks to watch out for ahead of Tuesday’s trading session:
- IIFL Finance: RBI initiated special audit by independent professional agency, which commenced on April 23, 2024 and has now concluded. The company has taken necessary measures to address the identified concerns and prevent their recurrence. Board forming a team to implement corrective action and revise these deviations and non-compliances. Management confident that these actions will resolve all issues raised by RBI. To mitigate risk of company as an ongoing concern, IIFL Finance raised ₹1,271.3 crore through a rights issue, secured ₹500 crore via NCDs from long-term investors and implemented cost control measures including reduction of major discretionary expenses.
- IIFL Finance: Net Interest Income up 28.5% year-on-year to ₹1,121.1 crore. Net profit at ₹430.6 crore, down 5.9% from last year. Gross NPA at 2.32% from 1.71% last quarter. Net NPA at 1.2% from 0.87% last quarter. Sharp deterioration in asset quality seen in gold loans and construction and real estate segment. Construction and real estate segment AUM declined by 30.3% year-on-year and 36.8% sequentially.
- Hindustan Aeronautics: Defence Ministry issues request for proposal to procure 156 Light Combat Helicopters.
- Zomato: Confirms to the exchanges that they are in talks with Paytm to acquire their entertainment business. However, no binding decision has been taken yet. Paytm also confirmed that there are talks ongoing without naming Zomato, but said that they want to focus on their core business and entertainment business is one of the options being considered for a sale.
- HFCL: Becomes the only Indian company against which no anti-dumping duty has been determined by the European Commission on export of Optical Fiber Cables to European countries. A provisional anti-dumping duty has been determined on all other Indian Optical Fiber Cable manufacturers barring HFCL.
- Zydus Life: USFDA classifies injectable manufacturing unit at Pharmez SEZ, Matoda unit as Official Action Indicated. The USFDA had conducted an inspection at the injectable manufacturing unit at Motada from March 18 to 27.
- SBI: Hikes MCLR by 10 basis points across all tenors.
- LIC: Clarifies on plans to enter health insurance business saying that no formal proposal has been initiated yet. However, the company evaluates and explores various strategic opportunities in the ordinary course. It also said that the company also explores inorganic options for growth and expansion of business, including strategic partnerships and investment opportunities.
- TCS: Received an adverse judgment from the US District Court, Northern District of Texas, Dallas Division, under which, the company is liable to pay $194.2 million for misappropriation of trade secrets. TCS maintains that it has strong arguments to counter the ruling and plans to defend its position through a review petition or an appeal to the appropriate court.
- Biocon: USFDA issues three observations for its API facility (Site 6) located at Visakhapatnam in Andhra Pradesh.
- ONGC / Oil India: Windfall tax on crude cut to ₹3,250 per tonne from ₹5,200 per tonne from June 15. Windfall tax on export of diesel, petrol and ATF continues to remain at nil.
- Wipro: Extends its partnership with Hanesbrands, an apparel brand, to further drive its digital transformation, business growth and enhance long-term profitability.
- Adani Enterprises: Promoters increase their stake by 2.02% in the company to 73.95% from 71.93%.
- RVNL: Emerges as the lowest bidder for a project worth ₹160.08 crore from the East Coast Railway.
Taaza Khabar 
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