Domestic markets are expected to open on a flat note on Thursday. While bulls are tired, bears are afraid to take fresh short positions, said a Chennai-based market veteran. Gift Nifty at 23,525 against the Nifty future value of 23,503 at NSE, signals a flat opening with positive bias.

The focus has now shifted to upcoming General Budget and other policy announcements of the new government, said experts. However, the undertone will remain positive, given the strong macros, they added.

Neeraj Sharma, AVP Technical and Derivatives Research at Asit C Mehta Investment Interrmediates Ltd, said domestic benchmark index Nifty50 touched new highs for the fifth consecutive day on Wednesday, boosted by banking, IT sectors and favourable global cues.

Vikas Jain, Senior Research Analyst at Reliance Securities, said, “We expect the domestic equity bourses’ northbound journey to continue, backed by rallies across global markets. Foreign investors turned net buyers of shares worth ₹11,730 crore last week (June 10-15). Global rating agency Fitch raised India’s growth forecast for FY25 to 7.2 per cent from 7 per cent. Strong advance tax collections and expectations that the government will focus on rural growth in the upcoming budget will positively impact market sentiment.”

Also read: Stocks that will see action today—June 20, 2024

Jaykrishna Gandhi, Head - Business Development, Institutional Equities, Emkay Global Financial Services, said, “After continuous net selling, FIIs turned net buyers in the cash segment.”

Amidst major short covering, FII index long short ratio has now increased to 49:51 from 13:47 over the last week, he added.

Shrikant Chouhan, Head Equity Research, Kotak Securities, said, “After a gap up opening, index facing selling pressure at higher levels. On daily charts, it has formed a bearish candle, indicating temporary weakness from the current levels.”

Meanwhile, equities across Asia-Pacific region are down in early deal on Thursday.

According further said, “Nifty on Wednesday lost all gains and ended the day on a negative note at 23,516 levels. Technically, on a daily basis, the index sustained above the breakout of last week’s consolidation range of 23,000 to 23,500 levels, indicating strength. The index may test 23,800-24,000 levels in the near future. Thus, a buy-on-dips strategy should be used in the Nifty, with support at 23,330.”

The Bank Nifty index opened with a gap-up and witnessed strong momentum throughout the day. As a result, Bank Nifty registered a record high of 51,957 and settled the day on a historic high at 51,398. Technically, on a daily scale, the Bank Nifty has crossed the previous barrier of 51,134 and managed to close above it, suggesting strength.

Thus, as long as Bank Nifty holds 51,000 levels, it could test the 51,800–52,000 levels in the short term, he added.

Related Topics