After a couple of days of buying, the market consolidated on June 15, prolonging the wait for the benchmarks to recapture their all-time high levels. Though the US Federal Reserve left the rates unchanged, it left the window open for rate hikes for the remaining year in case inflation remains sticky, impacting the mood on Dalal Street.
At 11.25 am, the Nifty was trading 0.09 percent or 17.50 points down at 8,738.40. Bank Nifty declined 0.29 percent to 43,859.95.
The weekly options data for the next series shows straddle trades at 18,800, which is a neutral strategy. Along with both put and call activity at 18,700, expectations are that the index will move in a narrow range. For the weekly expiry, unwinding was seen in-the-money as well as out-of-the-money strike.
“With uncertainty over policy rates hanging around, the market may remain choppy with strong bouts of intra-day volatility, even as selective buying would continue as an ongoing theme,” said Prashanth Tapse, Senior VP (Research), Mehta Equities. “Technically, the markets may rally only after crossing above the all-time high level of 18,888, while the make-or-break support for the Nifty is seen at the 18,553 mark.”
Anand James, Chief Market Strategist, Geojit Financial Services, also expects consolidation in the vicinity of 18,740, with eyes on 18,887-19,000-19,070, but a vertical upside is unlikely. “
While downside attempts are likely to be curbed at 18,708 initially, it might give way, should it be attacked in the second half, exposing 18,600, he added.
Among individual stocks, traders were clamouring to take bullish positions in L&T Financial Holdings followed by Godrej Properties, and IDFC First Bank.
IndusInd Bank, Bandhan Bank and Tata Chemicals were seeing a short buildup, which is a bearish sign.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
