It was a historic day for the market as the Nifty50 touched a new milestone of 19,000 mark on June 28, the monthly F&O expiry day. We have seen every sector participate in the rally, while the broader markets continued the uptrend for the third straight session along with benchmarks.
The BSE Sensex hit the 64,000 mark for the first time intraday, rising 499 points to 63,915, while the Nifty50 jumped 155 points to end at a record closing high of 18,972 and formed a bullish candlestick pattern on the daily timeframe.
"This rally was backed by a consolidation breakout observed on the daily chart, indicating a strong upward movement. Additionally, the Nifty index has successfully invalidated a Dark Cloud cover pattern on the weekly chart. It's worth noting that failed patterns often result in more significant price movements than the initial pattern itself," Rupak De, Senior Technical analyst at LKP Securities said.
In the short term, he believes that the overall trend for the Nifty index is expected to remain positive as long as it stays above the support level of 18,700. This level is significant because Put writers, who provide downside protection, are actively positioned there to prevent a substantial decline in the index, he said.
He sees the immediate resistance for the Nifty index at 19,000. If the Nifty convincingly breaks above this level, it may induce an upward movement towards 19,450, he says.
The Nifty Midcap 100 index rose six-tenth of a percent and the Nifty Smallcap 100 index gained a third of a percent.
We have collated 15 data points to help you spot profitable trades:
Note: The open interest (OI) and volume data of stocks in this article are the aggregates of three-month data and not just the current month.
Key support, resistance levels on Nifty
The pivot point calculator suggests that the Nifty may get support at 18,891, followed by 18,856 and 18,798, whereas in the case of an upside, 19,005 can be a key resistance area for the index, followed by 19,041 and 19,098.
The Bank Nifty also extended its upward journey and hit a fresh record high of 44,508, rising 206 points to close at 44,328. The index has formed a bearish candlestick pattern on the daily scale, but on the weekly charts, there was a long bullish candlestick pattern formation.
"The previous resistance level of 44,000 has now transformed into a strong support level, providing a cushion for the bulls," Kunal Shah, Senior Technical & Derivative analyst at LKP Securities said.
On the upside, he believes that the immediate hurdle is now at 44,500, where Call writing is visible. Once this level is surpassed, it is likely to lead to further upside towards the 45,000 mark, he said.
The pivot point calculator indicated that the Bank Nifty is likely to take support at 44,201, followed by 44,120 and 43,988, whereas 44,465 can be the initial resistance zone for the index, followed by 44,546 and 44,678.
As per monthly options data, the maximum Call open interest (OI) was at 19,000 strike, with 1.27 crore contracts, which can act as a crucial resistance area for the Nifty50 in coming sessions.
This was followed by 70.16 lakh contracts at 19,100 strike, while 19,500 strike has 55.6 lakh contracts.
The meaningful Call writing was seen at 19,100 strike, which added 23.87 lakh contracts, followed by 19,000 strike and 19,300 strike, which added 20.24 lakh and 11.98 lakh contracts respectively.
Maximum Call unwinding was at 18,900 strike, which shed 90.83 lakh contracts, followed by 18,800 and 18,700 strikes, which shed 84.75 lakh and 24.9 lakh contracts, respectively.
On the Put side, the maximum open interest was at 18,900 strike, with 1.12 crore contracts, which can be a crucial support level for the Nifty50 in the coming sessions.
This was followed by the 18,700 strike, comprising 92.54 lakh contracts, and the 18,800 strike, which has 66.79 lakh contracts.
Put writing was seen at 18,900 strike, which added 86.5 lakh contracts, followed by 19,000 strike and 19,100 strike, which added 30.79 lakh contracts and 2.58 lakh contracts, respectively.
We have Put unwinding at 18,700 strike, which shed 41.96 lakh contracts, followed by 18,800 strike and 18,600 strike, which shed 38.31 lakh contracts, and 27.25 lakh contracts, respectively.
Stocks with high delivery percentage
A high delivery percentage suggests that investors are showing interest in the stock. We have seen the highest delivery in HDFC, United Breweries, Alkem Laboratories, Dr Reddy's Laboratories and LIC Housing Finance among others.
The top 10 stocks which saw the highest rollovers on expiry day include SBI Card, Alkem Laboratories, Hindustan Unilever, Indiabulls Housing Finance and Reliance Industries around 98 percent rollovers.
An increase in open interest (OI) and price indicates a build-up of long positions. Based on the OI percentage, we have seen a long build-up in 12 stocks including Alkem Laboratories, Delta Corp, Sun Pharmaceutical Industries, InterGlobe Aviation and Hindustan Unilever.
A decline in OI and price generally indicates a long unwinding. Based on the OI percentage, 49 stocks including HDFC AMC, Dr Lal PathLabs, Dixon Technologies, Metropolis Healthcare and Laurus Labs saw a long unwinding.
An increase in OI along with a price decrease indicates a build-up of short positions. Based on the OI percentage, we have seen a short build-up in five stocks -Marico, HDFC Life Insurance Company, Federal Bank, Bank of Baroda and Aarti Industries.
A decrease in OI along with a price increase is an indication of short-covering. Based on the OI percentage, 123 stocks were on the short-covering list. These included L&T Finance Holdings, Shriram Finance, Petronet LNG, RBL Bank and Britannia Industries.
(For more bulk deals, click here)
Investors Meetings on June 30
DCX Systems: Management of the company will meet Goldman Sachs AMC.
BLS International Services: The company's management will interact with JM Financial Asset Management, BofA Securities India, Steadview Capital Management, and ENAM Asset Management (Singapore) Pte Ltd.
Gati: Officials of the company will meet Abakkus Asset Manager.
V-Guard Industries: The company's officials will interact with Pari Washington Company Advisors, and Nuvama Institutional Equities.
Torrent Power, Zydus Lifesciences, Symphony, Arvind SmartSpaces: Officials of these companies are participating in IIFL's 'Caravan' conference in Ahmedabad.
Clean Science and Technology: The company's officials will be meeting Nuvama Institutional Equities.
Polycab India: Officials of the company will interact with ASK Investment Managers.
VRL Logistics: The company's officials will meet Matthews Asia.
Ramkrishna Forgings: Senior officials of the company will interact with Seven Island PMS.
Electrosteel Castings: The company's officials will meet investors and analysts.
Sobha: The management of the firm will meet analysts and institutional investors.
Heritage Foods: The company's management will interact with DSP MF.
Kaynes Technology India: Senior officials of the company will meet Marshal Wace, ApaH Capital Management, Sumitomo HK, Zaaba Capital, CI Funds, and Janchor Partners.
Stocks in the news
ICICI Securities, ICICI Bank: ICICI Bank said the board members have approved the draft scheme of arrangement for delisting of equity shares of ICICI Securities. The public shareholders of ICICI Securities will get 67 equity shares of the bank for every 100 shares held by them in ICICI Securities. As a result, ICICI Securities will become a wholly-owned subsidiary of the bank.
63 Moons Technologies and MCX India: MCX has decided to extend the support services deal with existing software vendor, 63 Moons Technologies for its trading and clearing platform, for six months with effect from July 1, 2023. The service cost is Rs 125 crore per quarter.
Tata Communications: The Tata Group company has entered into an agreement to acquire US-based Kaleyra Inc, for CPaaS business expansion on a global scale. The said acquisition is expected to be completed within 6-9 months and the purchase consideration of $7.25 per share will be in cash only. The aggregate consideration is expected to be around $100 million.
Canara Bank: The public sector lender has received board approval for its capital raising plan for FY24 amounting up to Rs 7,500 crore via debt Instruments.
Zydus Lifesciences: The pharma company has received tentative approval from the United States Food and Drug Administration (USFDA) for Palbociclib tablets. Palbociclib is used to treat a certain type of breast cancer.
Bharat Petroleum Corporation: The oil marketing company has received approval from its board of directors for raising capital up to Rs 18,000 crore. This capital will be raised via an issue of equity shares on a rights issue basis to eligible equity shareholders of the Corporation.
ICRA: Sushmita Ghatak has resigned as Managing Director & CEO of ICRA Analytics. The company is in the process of identifying the successor for the said position. ICRA Analytics is a material subsidiary of ICRA.
Fund Flow
Foreign institutional investors (FII) bought shares worth Rs 12,350 crore, whereas domestic institutional investors (DII) sold shares worth Rs 1,021.01 crore on June 28, provisional data from the National Stock Exchange shows.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
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!
