For all the adrenaline rush that market participants witnessed last week when no session was without its extremes, Monday's trading session could well be called underwhelming, if not for any other adjective. The Nifty resorted back to its common pattern of hitting highs but failing to sustain above those levels.
The Nifty did make a new high on Monday, having fallen 20 points short last Friday. The new record of 23,411 is where the index faced resistance and reversed, eventually ending 150 points adrift of those levels, almost near the day's low.
Monday's price action almost errs on the side of caution, similar to how the Wall Street behaved on Friday ahead of the Fed interest rate decision later this week. The market, as of Friday, was projecting a 47% probability of the Fed cutting rates by 25 basis points in September, down from the 55% figure last Thursday. Earlier, that figure stood at close to 70%.
Caution seems par for the course too, with the Nifty having seen a 2,000 point swing in the week gone by. Technology shares, which were among the top performers on Friday and through the week, witnessed profit booking and were the worst performers on Monday.
When it comes to levels, the previous record high of 23,338 still is key as the index has not closed above that. Once that sustains, the Nifty can look to retest levels of 23,411 but those are levels where supply comes in.
For Monday's trading session, both foreign and domestic institutions were net buyers in the cash market. Net equity inflows in the month of May stood at a record high of well over ₹34,000 crore. The number would also be skewed for Monday's session courtesy of the large block deal in Mphasis.
Although the broader Nifty trend remains positive, Ruchit Jain of 5paisa.com does not rule out a consolidation or a pullback move to cool the overbought setups on the index. However, he advises traders to use such a correction / dip as a buying opportunity. Immediate downside support is at 23,000 - 22,850, while 23,500 and 23,900 will act as barriers on the upside.
Nagaraj Shetti of HDFC Securities said that the chances of a downward correction on the Nifty are high despite the near-term trend being positive. The index is placed at a critical level of 23,300. Support on the downside is at 23,100.
Kotak Securities' Shrikant Chouhan is of the belief that the Nifty staying below 23,400 will trigger a slip towards the 23,100 - 23,025 levels as the correction formation may continue. Only a move above 23,400 and sustaining that will take the index to 23,500. He advises contra traders to go long on the Nifty near 23,025 levels with a 30 points stop loss.
The Nifty Bank remained absolutely flat on Monday. The index again crossed the mark of 50,000 on Tuesday. The index has closed at nearly the same level as of Friday. Bulls though will take heart from two things; One being that Monday's intraday high of 50,252 is higher than Friday's high. Tuesday will also be the expiry of the Nifty Financial Services.
Kunal Shah of LKP Securities said that the Nifty Bank needs to decisively cross 50,000 to move back towards levels of 50,600 - 51,000 levels. Support at the lower end is at 49,000 levels, he added.
The Nifty Bank formed a Gravestone Doji on the daily chart, said Om Mehra of SAMCO Securities. However, he maintained that there is potential weakness in store if the index slips below 49,650, which can take the index further down to 49,300 and 49,150 levels. He too says that the uptrend on the Nifty Bank will resume once the index sustain above the mark of 50,000.
Nifty 50's June futures shed 6.6% or 8.59 lakh shares in Open Interest on Monday. They are now trading at a discount of 12.05 points compared to a premium of 35 points. On the other hand, Nifty Bank's June futures shed 6.7% or 1.77 lakh shares in Open Interest on Monday. Nifty 50's Put-Call Ratio is now at 0.97 from 1.15 earlier.
India Cements has entered the F&O ban along with Balrampur Chini, SAIL and Zee Entertainment.
Nifty 50 on the Call side for June 13 expiry:
On the Call side, the Nifty 50 strikes between 23,300 to 24,000 have seen Open Interest addition for this Thursday's expiry.
Nifty 50 on the Put side for June 13 expiry:
On the Put side, the Nifty 50 strikes between 23,000 to 23,300 have seen addition in Open Interest for this Thursday's weekly expiry.
These stocks added fresh long positions on Monday, meaning an increase in both price and Open Interest:
These stocks added fresh short positions on Monday, meaning an increase in Open Interest but a decline in price:
Short covering was seen in these names on Monday, meaning an increase in price but a decline in Open Interest:
Unwinding of long positions was seen in these stocks on Monday, meaning a decline in both price and Open Interest:
These are the stocks to watch out for ahead of Tuesday's trading session:
The Nifty did make a new high on Monday, having fallen 20 points short last Friday. The new record of 23,411 is where the index faced resistance and reversed, eventually ending 150 points adrift of those levels, almost near the day's low.
Monday's price action almost errs on the side of caution, similar to how the Wall Street behaved on Friday ahead of the Fed interest rate decision later this week. The market, as of Friday, was projecting a 47% probability of the Fed cutting rates by 25 basis points in September, down from the 55% figure last Thursday. Earlier, that figure stood at close to 70%.
Caution seems par for the course too, with the Nifty having seen a 2,000 point swing in the week gone by. Technology shares, which were among the top performers on Friday and through the week, witnessed profit booking and were the worst performers on Monday.
When it comes to levels, the previous record high of 23,338 still is key as the index has not closed above that. Once that sustains, the Nifty can look to retest levels of 23,411 but those are levels where supply comes in.
For Monday's trading session, both foreign and domestic institutions were net buyers in the cash market. Net equity inflows in the month of May stood at a record high of well over ₹34,000 crore. The number would also be skewed for Monday's session courtesy of the large block deal in Mphasis.
Although the broader Nifty trend remains positive, Ruchit Jain of 5paisa.com does not rule out a consolidation or a pullback move to cool the overbought setups on the index. However, he advises traders to use such a correction / dip as a buying opportunity. Immediate downside support is at 23,000 - 22,850, while 23,500 and 23,900 will act as barriers on the upside.
Nagaraj Shetti of HDFC Securities said that the chances of a downward correction on the Nifty are high despite the near-term trend being positive. The index is placed at a critical level of 23,300. Support on the downside is at 23,100.
Kotak Securities' Shrikant Chouhan is of the belief that the Nifty staying below 23,400 will trigger a slip towards the 23,100 - 23,025 levels as the correction formation may continue. Only a move above 23,400 and sustaining that will take the index to 23,500. He advises contra traders to go long on the Nifty near 23,025 levels with a 30 points stop loss.
The Nifty Bank remained absolutely flat on Monday. The index again crossed the mark of 50,000 on Tuesday. The index has closed at nearly the same level as of Friday. Bulls though will take heart from two things; One being that Monday's intraday high of 50,252 is higher than Friday's high. Tuesday will also be the expiry of the Nifty Financial Services.
Kunal Shah of LKP Securities said that the Nifty Bank needs to decisively cross 50,000 to move back towards levels of 50,600 - 51,000 levels. Support at the lower end is at 49,000 levels, he added.
The Nifty Bank formed a Gravestone Doji on the daily chart, said Om Mehra of SAMCO Securities. However, he maintained that there is potential weakness in store if the index slips below 49,650, which can take the index further down to 49,300 and 49,150 levels. He too says that the uptrend on the Nifty Bank will resume once the index sustain above the mark of 50,000.
What Are The F&O Cues Indicating?
Nifty 50's June futures shed 6.6% or 8.59 lakh shares in Open Interest on Monday. They are now trading at a discount of 12.05 points compared to a premium of 35 points. On the other hand, Nifty Bank's June futures shed 6.7% or 1.77 lakh shares in Open Interest on Monday. Nifty 50's Put-Call Ratio is now at 0.97 from 1.15 earlier.
India Cements has entered the F&O ban along with Balrampur Chini, SAIL and Zee Entertainment.
Nifty 50 on the Call side for June 13 expiry:
On the Call side, the Nifty 50 strikes between 23,300 to 24,000 have seen Open Interest addition for this Thursday's expiry.
| Strike | OI Change | Premium |
| 24,000 | 32.07 Lakh Added | 8 |
| 23,500 | 27.36 Lakh Added | 64.4 |
| 23,400 | 19.76 Lakh Added | 95.95 |
| 23,300 | 15.36 Lakh Added | 135.3 |
Nifty 50 on the Put side for June 13 expiry:
On the Put side, the Nifty 50 strikes between 23,000 to 23,300 have seen addition in Open Interest for this Thursday's weekly expiry.
| Strike | OI Change | Premium |
| 23,000 | 10.34 Lakh Added | 85.25 |
| 23,300 | 10.14 Lakh Added | 209.75 |
| 23,200 | 8.9 Lakh Added | 159.95 |
These stocks added fresh long positions on Monday, meaning an increase in both price and Open Interest:
| Stock | Price Change | OI Change |
| Ramco Cements | 5.60% | 36.99% |
| India Cements | 1.16% | 15.73% |
| United Breweries | 3.85% | 12.99% |
| Coromandel International | 3.78% | 11.96% |
| Aarti Industries | 4.22% | 11.94% |
These stocks added fresh short positions on Monday, meaning an increase in Open Interest but a decline in price:
| Stock | Price Change | OI Change |
| Mphasis | -3.04% | 59.55% |
| Coforge | -3.94% | 16.68% |
| PI Industries | -0.33% | 14.37% |
| Astral | -0.55% | 6.59% |
| GAIL | -2.84% | 5.79% |
Short covering was seen in these names on Monday, meaning an increase in price but a decline in Open Interest:
| Stock | Price Change | OI Change |
| Syngene | 1.68% | -8.09% |
| Divi's Labs | 0.23% | -5.39% |
| REC | 2.63% | -4.64% |
| Max Financial | 1.26% | -4.59% |
| Balkrishna Industries | 1.01% | -4.30% |
Unwinding of long positions was seen in these stocks on Monday, meaning a decline in both price and Open Interest:
| Stock | Price Change | OI Change |
| Bharat Forge | -0.29% | -6.66% |
| Manappuram Finance | -1.03% | -6.55% |
| ICICI Bank | -0.55% | -6.11% |
| GCPL | -0.86% | -5.07% |
| Balrampur Chini | -1.43% | -4.89% |
These are the stocks to watch out for ahead of Tuesday's trading session:
- IndiGo: Rahul Bhatia family unit InterGlobe Enterprises likely to sell 77 lakh shares via block deals worth ₹3,293 crore. The floor price has been fixed at ₹4,266 per share, which is a 7% discount to Monday's closing price.
- IRB Infra: Cintra (Ferrovial Affiliate) is likely to sell 5% stake in the company. Deal price ranges from ₹63 to ₹70.16 per share, which is a discount of up to 10.2% from Monday's closing price. At the lower end of the price band, the deal size is said to be worth ₹1,900.3 crore. Further sale will have a lock up of 150 days.
- Mphasis: Kotak Mahindra Mutual Fund, Morgan Stanley and Societe Generale buy shares worth ₹1,900 crore in Monday's block deal.
- Vodafone Idea: To consider issue of shares, securities on a preferential basis to vendors on June 13.
- Transformers and Rectifiers: Launches QIP in order to raise funds. Floor price of ₹699.95 per share is a 4.5% discount to Monday's closing price. The company can offer a discount of not more than 5% on the floor price.
- Rail Vikas Nigam: Emerges lowest bidder for a Central Railway project worth ₹138.45 crore. In a consortium with Siemens, RVNL has also won the LoA for a Bengaluru Metro Rail Corporation project worth ₹394 crore.
- NLC India: To raise foreign currency loan through external commercial borrowings (ECB) in any foreign currency as per business requirement to the extent of $600 million through the direct route, subject to RBI guidelines. Board also gives in-principle approval to invest up to ₹994.5 crore in one or more tranches in NLC India Renewables Ltd., a wholly-owned subsidiary by way of subscribing to the equity shares at face value, subject to necessary approvals from DIPAM.
- Sudarshan Chemicals: Launches five new products - Sumica Silver 41135, Sumica Bright Silver Fine 41126, Sudafast Green 2730 KF, Sudacolour Yellow 162 KF, Sudacolour Yellow 179K. New products effective for plastics, coatings, textiles, used in plastic application etc.
- Senco Gold: Incident of burglary reported from franchise store located in West Bengal's Raniganj. FIR lodged with the policy. Store owned and operated on a Franchise owned and franchise operated model. Inventory held by the franchise is in its own books and as such there is no loss on account of inventory to the company.
First Published: Jun 10, 2024 7:52 PM IST
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