Nifty Records Closing on Expiry Day; Nifty Prediction for Tomorrow

Nifty Prediction for Tomorrow

Nifty Records Closing, But Resistance Looms: A Look at Market Direction for June 14th

Nifty and Sensex witnessed a record-breaking closing on their expiry day, but experts warn of potential resistance that could impact the market’s movement on June 14th.

This article dives into the market outlook, analyzes expert opinions, and explores potential scenarios for the upcoming session.

Market Outlook: Resistance and Support Levels

Sameet Chavan, Research Head at Angel One, highlights a significant hurdle for Nifty in the 23,400-23,500 zone. A decisive breakout above this resistance is crucial for further gains. On the downside, however, support lies at 23,200, offering a cushion in case of a pullback.

Rishikesh Yedve, Technical and Derivatives Research Head at Mehta Investment Intermediates, adds another layer of analysis.

He suggests profit booking might occur if the index remains below 23,500. Conversely, a break above this level could trigger a surge towards 23,700-23,800, indicating a potential continuation of the uptrend.

Market Recap: Record Closures and Sectoral Performance

The expiry day witnessed a historic moment with both Nifty and Sensex recording their highest closing figures ever. The Sensex touched an intraday high of 77,145 points, while Nifty reached 23,481. The midcap index also joined the party, scaling new peaks.

Sectoral analysis reveals buying dominated the market. Realty, consumer durables, auto, and IT sectors witnessed significant investor interest.

The final bell saw Sensex gaining 204 points to settle at 76,811, and Nifty ending the day 76 points higher at 23,399.

However, Bank Nifty closed on a lower note, down 48 points at 49,847. The midcap index, on the other hand, defied the trend and closed 426 points higher at 54,652.

The buying spree wasn’t limited to indices. 20 out of the 30 Sensex constituents and 35 out of the 50 Nifty stocks witnessed positive movement. The rupee, however, remained stable at Rs 83.55 per dollar.

Expert Opinions on the June 14th Movement

While the record closing is a positive sign, experts remain cautious about the upcoming session. Here’s an analysis of expert opinions on how the market might move on June 14th:

• Ajit Mishra, Religare Broking: Anticipates a time correction in Nifty, suggesting a continuation of the current trend. He advises investors to adopt a cautious approach and focus on selective stock trading. Sectors like agri, sugar, chemicals, and select defense stocks might offer potential opportunities for long positions.

• Deven Mehta, Choice Broking: Identifies crucial support levels for Bank Nifty at 49,800, followed by 49,600 and 49,500. If the Bank Nifty manages to break above these levels, it could encounter resistance at 50,100, 50,300, and 50,500. These support and resistance zones can help investors make informed decisions based on their risk tolerance and trading strategies.

Global Cues and Macroeconomic Factors

The movement of the Indian market is also influenced by global cues and macroeconomic factors. It’s important to consider these external influences when analyzing the market’s direction for June 14th. Here are some key factors to watch:

• Performance of US Markets: The performance of major US indices like the Dow Jones Industrial Average, S&P 500, and Nasdaq can significantly impact the Indian market sentiment.
• Crude Oil Prices: Fluctuations in crude oil prices can affect various sectors in the Indian economy, including energy and transportation.
• Interest Rate Decisions: Upcoming interest rate decisions by central banks like the Reserve Bank of India (RBI) and the US Federal Reserve can influence investor confidence and market direction.
• Geopolitical Tensions: Ongoing geopolitical tensions and global events can create uncertainty and impact investor behavior.

Strategies for June 14th

Based on the expert opinions and potential scenarios, here are some strategies to consider for June 14th:

• Cautious Approach: Given the possibility of a time correction and resistance levels, a cautious approach might be prudent. Focus on managing risk and consider profit booking if your portfolio has seen significant gains.
• Selective Stock Picking: Instead of chasing broad market trends, focus on identifying strong individual stocks with good fundamentals and growth potential.

• Utilize Technical Analysis: Technical analysis tools like charts and indicators can help identify support and resistance levels, potential entry and exit points, and short-term trading opportunities. However, remember that technical analysis is not foolproof, and it should be combined with fundamental analysis for a more comprehensive approach.

• Focus on Specific Sectors: As certain sectors witnessed strong buying on the expiry day, consider researching and investing in those that align with your investment goals and risk tolerance. Sectors like realty, consumer durables, auto, and IT might offer potential opportunities based on recent performance.

• Hedging Strategies: For investors with a higher risk tolerance, implementing hedging strategies can help mitigate potential losses. Options trading can be a complex topic, so consulting a financial advisor before employing such strategies is highly recommended.

Final Remarks:

The Indian market has displayed a positive trend, but the upcoming session might see some volatility due to potential resistance levels and time corrections.

By understanding the expert opinions, support and resistance zones, and external influences, investors can make informed decisions for June 14th.

Remember, a disciplined approach, risk management strategies, and continuous learning are key factors for success in the dynamic world of stock markets.