Indian Equity Market extended their gains for the second straight session on Tuesday following positive Asian cues. Some support also came on the news that the southwest monsoon entering Madhya Pradesh, Chhattisgarh, coastal Andhra Pradesh, Odisha, West Bengal, Jharkhand, and Bihar.
What’s Next?
The absence of fresh selling triggers in the domestic and global economy along with falling commodity prices relieved the heavily discounted equity market to showcase recovery.
The recovery indicates that the current uncertainties of inflation and monetary policy tightening have been factored in. However, with the highly sensitive nature of the current equity market, even the slightest inconvenience can trigger volatility.
Indian Equity Market Summary
Nifty (up 1.88%) – Open 15455.95, High 15707.25, Low 15419.85, Close 15638.80
Bank Nifty (up 1.55%) – Open 32978.05 High 33593.80, Low 32797.55, Close 33191.75
Sensex (up 1.81%) – Open 51897.60, High 52799.40, Low 51808.76, Close 52532.07
India Vix – down 5.67% to end at 21.14
FII’s: Net Sellers : ( – 2701.21 Crores )
DII’s: Net Buyers : ( + 3066.41 Crores )
Bullish Sectors – Media (5.49%), PSU Bank (4.06%)
Bearish Sectors – Not a single sector closed in negative.
Top Gainers Stocks – Titan (+5.74%), SBIN (+3.91%)
Top Losers Stocks– Nestle (-0.26%)
Nifty Open Interest Put Call Ratio (PCR): 1.05
Maximum CE Open Interest Strike: 16000
Maximum PE Open Interest Strike: 15500
Bank Nifty Open Interest Put Call Ratio (PCR): 1.06
Maximum CE Open Interest Strike: 33500
Maximum PE Open Interest Strike: 33000
(The maximum CE PE open interest strike rate indicates that the market is likely to move in that particular range in the coming days)
Technical View of Benchmark Index
Nifty
Nifty witnessed an upside breakout after two days of prevailing range.
Continuous higher highs and higher lows are seen on the intraday charts, with momentum oscillators continuing to support the trend.
The level of 15500 is broken and the index sustained above it on a daily closing basis.
Now for the coming days, this will act as a support level.
Nifty Futures Strategy for Wednesday
Nifty Future has resistance at 15750 if breaks and sustains above that level, then it will take it to 15850-15950.
Support at 15600 breaks and sustain below that level will take it towards 15500–15400.
Bank Nifty
Bank Nifty broke its sturdy wall of 33000 and traded above it.
Major PSU Bank supported the index on its upside journey with SBIN becoming the top gainer.
Now in the coming days ahead, if the Bank Nifty holds the level of 33000, then we can see more upside on the charts.
Bank Nifty Futures Strategy for Wednesday
Bank Nifty Future has resistance at 33500 if breaks and sustain above that level then it will take it to 33700–33900.
Support at 33200 breaks and sustain below that level then it will take it to 33000—32800.
TOP STOCK RECOMMENDATION (22nd June 2022)
MFSL FUTURES
A range breakout is possible after the consolidation on the hourly time frame charts.
Strategy – Traders are advised to buy MFSL Futures above 820 for the upside target of 830 and then to 840 levels in the days to come.
Support and stop loss will remain at the 805 level on a closing basis.
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