A morning walk down Dalal Street: Nifty can move towards 12,000 unless there are any expiry jitters

Source: moneycontrol.com

A strong rally despite muted global cues in the morning helped Nifty50 climb 11800 levels on a closing basis while the S&P BSE Sensex rallied by over 150 points on Wednesday.

Benchmark indices managed to put up a strong show ahead of the June expiry on June 27 amid reports of some agreement between US and China on trade issues. Volatility is likely to continue as traders will roll over their positions from June series to July series.

The near-term movement in the market is likely to be driven by progress on monsoon and global developments. The G20 summit, to be held on June 28-29, will be closely monitored by analysts, suggest experts.

The initial public offering of IndiaMART InterMESH, an online marketplace for business products and services, was subscribed 36.16 times on the final day of bidding June 26.

The Indian rupee June 26 advanced by 21 paise to close at 69.15 against the US currency in line with an uptrend in domestic equities.

On the institutional front, FPIs were net buyers in Indian markets for Rs 106 cr while the DIIs were net sellers to the tune of Rs 51 cr, provisional data showed.

Big News:

The first six months have been a roller coaster ride for investors but not so much for the ones who have invested in Nifty50. The index climbed Mount 12K to hit a fresh record high of 12103 earlier in the month of June.

The index has rallied by a little over 8 percent so far in the year 2019 as of June 25 while the S&P BSE Sensex rose a little over 10 percent in the same period.

Almost 20 percent or 10 stocks in the Nifty50 are trading near fresh record high and also qualify under the category of wealth creators in the index.

9 out of 10 stocks which hit fresh 52-weeks highs in June rose 10-40 percent so far in the year 2019 which include names like Titan Company, Bajaj Finance Bajaj Finserv, UPL, Axis Bank, TCS, Bharti Airtel, Wipro, and HDFC Bank rose over 10 percent while HDFC is trading with gains of a little over 9 percent, as of data collated ion June 24.

Apart from the stocks discussed above, as many as 18 stocks in the Nifty50 rose over 10 percent so far in the year 2019 which include names like SBI, ICICI Bank, Kotak Mahindra Bank, UltraTech Cements, Infosys, RIL, HCL Technologies, and IOC.

Technical View:

Nifty forms a bullish candle for the second consecutive day in a row

The index has also given a seven day’s consolidation breakout from its trading range of 11,625 to 11,850. Hence the index can move towards 12,000 unless there are any expiry jitters, experts said.

If Nifty slips below 11,757, then the current bullish outlook shall get negated and Nifty may once again move in a 200-point range with downside targets placed around 11,650, they say.

Three levels: 11757, 11871, 11900

Max Call OI: 12000, 11900

Max Put OI: 11700, 11800

Stocks in news:

State-owned Canara Bank on June 26 said it has proposed to raise Rs 1,500 crore through bonds, to fund business growth.

Dewan Housing Finance Corporation Ltd (DHFL) June 26 said it will shortly divest its full stakes in subsidiary firms DHFL Pramerica Asset Managers and DHFL Pramerica Trustees.

Mindtree Chief Executive Officer Rostow Ravanan is likely to resign in the coming weeks with infrastructure major L&T becoming a majority shareholder in the mid-sized IT company, according to sources.