Indian stock market benchmark indices, Sensex and Nifty 50, are anticipated to open on a flat note on Wednesday, following mixed global market cues. The Gift Nifty trends also suggest a muted start for the Indian benchmark index, trading around the 23,307 level, a slight discount from the Nifty futures’ previous close.
Market Recap: June 11
On Tuesday, the Indian stock market indices ended the day nearly unchanged amid weak global cues. The Sensex eased by 33.49 points, or 0.04%, closing at 76,456.59, while the Nifty 50 gained 5.65 points, or 0.02%, settling at 23,264.85. The Nifty 50 formed a small negative candle on the daily chart with an upper shadow, indicating potential for a minor downward correction in the short term.
“After a sharp upmove recently, the market showing such formations in the last two sessions indicates the possibility of minor downward correction in the short term. Nifty is currently placed at the hurdle of 23,400 – 23,500 levels (1.382% Fibonacci projection), weekly hanging man and the opening downside gap of 4th June, which are weighing high for the market to sustain the new all-time highs,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
Nifty OI Data Analysis
Regarding the Open Interest (OI) data, Mandar Bhojane, Research Analyst at Choice Broking, noted that the highest OI on the call side was observed at the 23,400 and 23,500 strike prices. On the put side, the highest OI was at the 23,000 strike price.
Rahul Ghose, CEO of Hedged.in, added that the increased writing in the put OI at 23,300 and below levels suggests limited downside for this weekly expiry. “The highest writing of the put is still at 23,000 strike and writing of the call is at 23,500 for the week indicating range-bound movement in the index. The PCR opened at 0.80 and traded at 0.99 during the day, indicating that at higher levels the bears are returning, which is the sign of a market down-turn in coming days. However, this was not reflected in the India Vix as mentioned and hence, one must be cautious in building short positions and must use hedges on both sides,” he said.
Nifty 50 Prediction
On June 11, Nifty 50 continued to show choppy movement at the hurdle of 23,400 levels and closed the day on a minor positive note.
“Nifty remained sideways during the day as there was no directional move. The sentiment might remain sideways as well until it breaks out of the 23,150 – 23,350 range. Any decisive breakout on either side might confirm the future direction of the market,” said Rupak De, Senior Technical Analyst at LKP Securities.
On the higher end, above 23,350, Nifty might move towards 23,600. Meanwhile, support below 23,150 is placed at 23,000 – 22,900, he added.
The Nifty index formed a ‘Shooting Star’ candlestick pattern in the last trading session, suggesting a potential shift in broader market sentiment. “The benchmark was also seen trading in a small range, suggesting a potential shift in the broader market sentiment. The stock market has displayed resilience in recent trading sessions, and from hereon, any dip in the index ranging between 4% and 10% should be treated as a buying opportunity, especially for short-term and mid-term traders,” said V.L.A. Ambala, Co-founder of Stock Market Today (SMT).
Ambala expects Nifty to gain support between 23,200 and 23,040, and face resistance between 23,335 and 23,500 levels.
Bank Nifty Prediction
The Bank Nifty index declined by 75 points to close Tuesday’s session at 49,706, forming a bearish candle with a small body.
“The Bank Nifty Index experienced a sideways trading session and was unable to surpass the 50,000 mark, where the highest open interest is built up on the call side. Once the index breaks above 50,000, it is likely to see sharp short covering towards the 50,500 / 51,000 levels,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
According to Shah, the undertone remains bullish, and traders should adopt a buy-on-dip approach with support at 49,000, where the highest open interest is built up on the put side.
