Market shrugs off global cues; Bank Nifty approaches new record high
In spite of the negative cues from SGX Nifty, Nifty started trading for the week marginally positive and then it rallied higher along with a positive movement in the broader markets. Nifty registered a high of over 18450 and ended the day around 18400 with gains of about half a percent.
Our markets continued with the recent momentum and rallied higher to 18450 led by momentum in the broader markets. The Bank Nifty index is now just a kissing distance away from registering a new record high and has ended comfortably above the 44000 mark. Last week, we mentioned in our report the probability of the 18450 target zone for Nifty as it is the 78.6 percent retracement of the previous down move. Now while the index has achieved that, there are no signs of reversal as of now and it needs to be seen if we see any profit booking in the coming session from this hurdle or if we continue to inch higher. In the index futures segment, we have not seen any significant positions built in this series so far. Being a strong trend, it seems that market participants are not willing to form any short positions and hence, there’s enough room for fresh long formations by these participants. This will limit the downside and hence in case of any dip in the market, we could again see buying interest at lower levels. In the options segment, put writing has been seen at 18300 and 18200 strikes and hence, these now become important supports on declines. The momentum readings on the Nifty daily as well as the hourly charts are positive and hence, one should continue to trade in the direction of the trend until we get any negative signs there. The options positions indicated an immediate hurdle around 18500 as it had decent open interest built. But if we surpass this hurdle, the unwinding of call writing positions can lead to further momentum toward 18650.
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DisclaimerInvestment/Trading is subject to market risk, past performance doesn’t guarantee future performance. The risk of trading/investment loss in securities markets can be substantial. Also, the above report is compiled from data available on public platforms.
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Gold traded sideways after a 1% climb in the previous session, although gold headed for second straight weekly gains on bets that the U.S. Federal Reserve may pause rate hikes in its next week meeting. According to the Fed rate monitor tool, there was a 73.7% chance that the central bank will stand down from the rate hike next week. Market participants are keeping an eye on the next inflation reading due Tuesday.
- Jun 09, 2023
In the week gone by, our markets continued its upmove during the mid-week and Nifty rallied towards 18800 mark. But it fell just short of making a new record and witnessed some profit booking towards the end of the week to end below 18600 with marginal weekly gains.
- Jun 09, 2023
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