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Indian Market Morning Update: Key Levels and Sector News

By Mandar in Indian Market Insights —

Market Outlook: June 18, 2024

Indian benchmark indices, Sensex and Nifty, are anticipated to open with a strong start today, as indicated by the GIFT Nifty trading higher around 24,887, signaling positive market sentiment.

  • The Sensex closed yesterday marginally up by 57.75 points at 80,597.66.
  • The Nifty rose slightly by 11.95 points to 24,631.30.

Market Sentiment and Technical Analysis

While the market shows gains, a cautious approach is apparent.

  • The Nifty faces resistance near the 24,770 short-term 21-day moving average (DMA).
  • A decisive move above this level could lead to further gains towards 25,000.
  • The Relative Strength Index (RSI) has improved to 44, suggesting better momentum.
  • The Moving Average Convergence Divergence (MACD) remains below zero, indicating that confirmation of a strong trend reversal is pending.

Analysts suggest:

  • Nifty is likely to trade between 24,200-24,800 in the near term.
  • Strong support is around its 200-day exponential moving average (24,200).
  • Based on Elliott Wave Theory, Nifty might be entering an upward phase, aiming for levels near 28,000.

Investment Strategy

Investors might consider accumulating quality large caps in sectors such as:

  • Defence
  • Pharmaceuticals
  • Capital Goods
  • Automobiles

Notable stocks include:

  • L&T
  • SBI
  • Reliance
  • Hindustan Unilever
  • UltraTech Cement
  • Cipla
  • Hero MotoCorp

Bank Nifty Analysis

Bank Nifty is under pressure:

  • Trading below its 20-day and 50-day EMAs.
  • Showing a bearish structure with lower highs and lows.
  • Key support is near 54,900.
  • Breaking this could lead to further declines towards 54,470 or 54,000.

Stock-Specific Highlights

  • Manappuram Finance: Showing strong bullish momentum with potential upside towards Rs 875, with a stop loss at Rs 745.
  • State Bank of India (SBI): Consolidating within a channel and could rebound higher above Rs 840, targeting Rs 945 in the near term.

Foreign Institutional Activity

  • Foreign portfolio investors (FPIs) have sold equity worth Rs 1,927 crore recently.
  • Domestic institutional investors have continued buying.

India VIX, a measure of market volatility, rose by 1.77% to 12.36, reflecting mild increases in risk perception.