Nifty, Sensex and Nifty Bank Outlook for June 26: Benchmark indices hit fresh highs in trade on Tuesday, supported by aggressive buying in private banking stocks. The S&P BSE Sensex hit a new high of 78,165, the Nifty hit 23,754 and the Bank Nifty hit 52,747.
The Nifty 50 index seems on course to test its daily-scale super trendline resistance around 23,850 levels. Meanwhile, the weekly chart shows that the short-term trend is likely to remain bullish as long as the index remains above the 23,600 levels.
Meanwhile, the BSE Sensex crosses a major annual Fibonacci hurdle on Tuesday. The BSE benchmark index may target 79,940-81,750 levels in the coming year. On Wednesday, the Sensex is likely to fluctuate 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.
FII’s trading activity in F&O
In the derivatives segment, FIIs net bought index futures for the twelfth 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 Nifty and Bank futures – a total of 18,991 and 19,459 contracts respectively.
As a result, the long-short ratio of the FII index futures rose to 1.59, with net index longs at 61.45 percent and index shorts at 38.55 percent.
On the other hand, DIIs (Domestic Institutional Investors) and retail investors had net short positions in index futures at 62.05 percent and 57.49 percent.
Trading Strategy for Wednesday, June 26 – Should You Buy or Sell Stocks Today? Here’s What Market Experts Recommend:
Ashwin Ramani, Derivatives and Technical Analyst, SAMCO Securities
Call writers (Bears) exit at the 23,500 Strike, coupled with strong put writing at the 23,600 in Nifty, led the steady rise in the Nifty throughout the day on Tuesday. The call writers, the Bears, (1.87 lakh contracts) are marginally leading the put writers, the Bulls, (1.50 lakh contracts) at the 23,700 Strike and the options activity at this strike will provide clues as to the future direction of Nifty.
The Bank Nifty saw all Strikes from 51,000 to 52,000 call writers (Bears) leaving and writing, leading to the strong rise in Bank Nifty yesterday. The resistance for Bank Nifty now shifts to 53,000 and the options activity on this Strike will provide clues about the future price of Bank Nifty.
Om Mehra, Technical Analyst, SAMCO Securities
The Nifty broke the crucial resistance at 23,670 and surpassed the psychological mark of 23,700. The Nifty’s three inside-up patterns highlight the bullish momentum. Nifty did not even return to the 23.6 per cent level and slowly moved higher, underscoring the strong bullish outlook of the index.
The Bank Nifty has touched a new lifetime high of 52,746.50. This upward move confirms a breakout of the megaphone pattern on the daily time frame. The session’s opens and lows were nearly identical, indicating strong buying interest from the outset. The primary trend remains firmly up, suggesting that any pullback towards the 52,400-52,500 range would be a buying opportunity. The daily Relative Strength Index (RSI) is robust at 70 levels.
Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates
Technically, the Nifty broke out of the short-term consolidation range of 23,330 – 23,670. According to this breakout, the rally could extend to 24,000 levels. On the other hand, 23,670 will act as immediate support for the index.
The Bank Nifty has crossed the short-term trendline resistance and remained above the 52,000 threshold, indicating strength. As long as the index remains above the 52,000 levels, the buy-on-dips strategy should be employed. On the higher side, 53,000 will be an immediate threshold for the Bank Nifty.
Rupak De, Senior Technical Analyst, LKP Securities
The Nifty rose above 23,700 to hit 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 PCR to rise. In the short term, the trend could remain strong as long as it remains above 23,500. On the higher side, the Nifty could continue to move towards 24,000 in the near term.
Kunal Shah, senior technical and derivatives analyst at LKP Securities
The Bank Nifty index broke above the resistance at 52,000, where the highest open interest accrued on the call side. The index is trading in a strong uptrend, with higher highs and higher lows remaining intact on the daily chart. Support now stands at 52,000, and intraday declines should be viewed as a buying opportunity for 53,000/53,500 targets.