27 June 2024 Punjab Khabarnama : The market had another strong session, with the benchmark indices surpassing new milestones (24,000 on Nifty and 79,000 on BSE Sensex) and witnessing new closing highs on June 27, the monthly F&O expiry session. Experts see the Nifty 50 rising further up to the 24,500 zone in the July series if it holds 24,000-23,800 as support. The Bank Nifty needs to give a decisive close above 53,000 for an upward journey; otherwise, it may consolidate further, experts said.
On Thursday, the Nifty 50 rallied 176 points or 0.74 percent to 24,044.50 despite consistent negative breadth, whereas the Bank Nifty fell 59 points or 0.11 percent to 52,811 on profit booking. About 1,569 shares declined, and 751 shares advanced on the NSE.
Nifty Outlook and Strategy
Chandan Taparia, Head – Equity Derivatives & Technicals, Broking & Distribution at Motilal Oswal Financial Services
The Nifty index gave the highest ever close on all time frames and ended the June series on a higher note. It formed a strong bullish candle on the weekly as well as the monthly frame and has been forming higher highs and higher lows for the last eight months. Now it has to continue to hold above 24,000 levels to extend the move towards 24,400 and 24,500 zones, whereas supports are placed at 23,800 then 23,700 zones. Comparatively lower volatility is comforting the bulls to drive the index to higher zones. Option data suggests a broader trading range between 23,600 to 24,500 zones for the Nifty 50, while an immediate trading range is expected to be between 23,750 to 24,250 levels.
Key Resistance: 24,400, 24,500
Key Support: 23,800, 23,700
Strategy: Buy on decline with support of 23,800 and a target of 24,400.
Mandar Bhojane, Equity Research Analyst at Choice Broking
The Relative Strength Index (RSI) indicates a bullish crossover, coinciding with the index positioned above a crucial moving average. If the Nifty 50 closes above the 24,050 level, it could further rise to 24,500 and 25,000 levels. On the flip side, 23,600 and 23,500 will act as immediate support levels.
Key Resistance: 24,200, 24,500
Key Support: 23,600, 23,200
Strategy: Buy on dips near 23,600 levels for a target of 24,800 and 25,000 levels, with a stop-loss of 23,350 on a closing basis.
Drumil Vithlani, Technical Research Analyst at Bonanza Portfolio
On a daily scale, the Nifty has been holding well above its all EMAs (Exponential Moving Averages) support level for 15 sessions in a row; the support has been rising with the trend. The immediate support level is placed at 23,723, below which the index may see a change in trend, while upside momentum is expected to continue towards 24,000-24,150. Traders should refrain from chasing momentum longs once the index trends around the 23,950-24,000 zone and utilize intraday dips, if any, towards 23,700, to add longs until 23,500 holds.
Key Resistance: 24,200, 24,500
Key Support: 23,700, 23,500
Strategy: Sell 1 lot of 23,700 strike Put and buy 1 lot of 23,500 strike Put, with the July expiry.
Bank Nifty – Outlook and Positioning
Chandan Taparia, Head – Equity Derivatives & Technicals, Broking & Distribution at Motilal Oswal Financial Services
The Bank Nifty has underperformed for many series and finally witnessed a comeback of the bulls and a catch-up rally, which took it to touch a fresh all-time high of 53,180 levels. Heavyweights have been the engine for the June series and moved this rate-sensitive index by more than 7,000 points. It formed a bullish candle on weekly and monthly scales with support-based buying. Now it has to hold above 52,500 zones for an up move towards 53,300 then 53,500 zones, while on the downside, support is placed at 52,400 then 52,200 levels.
Key Resistance: 53,300, 53,500
Key Support: 52,400, 52,200
Strategy: Buy on decline with support of 52,500 for an upside target towards the 53,500 zone.
Mandar Bhojane, Equity Research Analyst at Choice Broking
The RSI is trading at 70.5, showing bullish momentum. If the Bank Nifty closes above the 53,000 level, it could further rise to 53,500 and 54,000 levels. On the flip side, 52,000 will act as immediate support and offer a buy-on-dips opportunity, with the next support near the 51,500 level.
Regarding the open interest (OI) data, on the Call side, the highest OI was observed at the 53,000 and 54,000 strikes. On the Put side, the highest OI was at the 52,000 strike. The market is expected to remain volatile. Hold your positions with a trailing stop-loss. Any dip will be a buying opportunity as the overall trend remains bullish.
Key Resistance: 53,000, 54,000
Key Support: 52,000, 51,500
Strategy: Buy on dips near 51,500 levels for a target of 52,000 and 52,300 levels, with a stop-loss of 51,300 on a closing basis.
Drumil Vithlani, Technical Research Analyst at Bonanza Portfolio
Derivatives data and technical charts suggest the index is expected to ride the up move until there is any weakness on the price front. Going ahead, the trailing stop-loss for the long position should now be trailed to 52,500. Bank Nifty’s support now stands at 52,000, and intraday dips should be viewed as a buying opportunity.
Key Resistance: 53,000, 53,300
Key Support: 52,500, 52,000
Strategy: Sell 1 lot of 52,500 strike Put option and buy 1 lot of 52,000 strike Put option of July expiry.