Trade Setup for June 24: The Indian stock market started the week on Monday (June 23) with weakness. On Monday, NIFTY started trading with a decline of 173 points. The reason for this was the American AISRIRARR on Iran’s nuclear bases, causing more tension in the Middle East.
On Friday, there was hope in the market that the US was avoiding its decision in the war for two weeks, which can improve the situation. But the unpredictable attack on weekends destroyed the expectations of investors. This led to a sharp jump in the prices of crude oil and profits dominated the Indian equity market.
On Tuesday (June 24), how will the Nifty move, which level will be important, will understand this expert. But, first let us know what happened in the market on Monday.
Nifty fluctuations throughout the day
The Nifty made a strong return from the lowest level of the day to 24,824 and showed a recovery of about 233 points. However, it could not stand up and finally closed at 24,972 with a decline of 141 points. It remained below Friday’s closing, but was 32 points above the initial level. Nifty maintained Friday’s trading range throughout the day, but could not cross the important level of 25,000.
Pressure on auto, IT and diagnostic shares
There was a selling pressure on IT shares. Veteran shares such as Infosys, HCL Tech (HCL Technologies), TCS and Wipro declined by 1% to 3%. The reason for this was the weak quarterly results of the accenture, which increased the worry in the sector.
The government has proposed to implement compulsory ABS (Anti-lock Braking System) in all two-wheelers. This led to a decline in auto shares like Bajaj Auto, TVS Motor, Hero Motocorp.
Diagnostic companies- Dr Lal Pathlabs and Metropolis Healthcare shared up to 4%. The reason behind this is Amazon’s entry into the diagnostics sector, which is now serving in six cities including Delhi, Mumbai, Noida.
Midcap and smallcap showed strength
Midcap and smallcap stocks performed better despite the market fall. The Nifty Midcap 100 index recorded a growth of 0.36% and the Smallcap 100 index. This is the second consecutive day when both these index have surpassed the Sensex and Nifty.
Which stocks saw a boom?
Trent, BEL and Hindalco were the top gainers of Nifty. At the same time, there was the most weakness among veterans like Infosys, HCL Tech and L&T (L&T). BSE shares saw a 3% gains of 3%, while IndiGo showed a rise of more than 1% amid speculation of joining the Nifty 50.
What will be the trend in the Nifty?
Ajit Mishra of Religare Broking said that until a big domestic trigger comes, the direction of the Indian market will depend on the performance of the global market and the prices of crude oil.
According to Nagraj Shetty of HDFC Securities, until Nifty crosses the resistance of 25,100 to 25,200, it can remain market fluctuations. He said, “If the Nifty crosses this range firmly, only then can be the possibility of afresh. At present, if the consolidation continues in the market, 24,800 may show strong support.”
LKP Securities’s metaphor Dey said that Nifty has given closing above the support level of 24,850 at the end of the day. In such a situation, as long as the Nifty rests on this level, shopping opportunities can remain in the market. If the Nifty comes out above 25,000, it can move towards 25,350 in a short period.
According to Devarsh Vakil of HDFC Securities, his primary trend still remains bullish despite a short-term consolidation in the Nifty. He said, “Recent swing 24,733 is acting as a strong immidiat support, while the scope of resistance is between 25,136 to 25,222.”
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