Trade Setup For June 25: Analysts Signal Bullish Momentum For Nifty

The momentum equity gauges at the current levels are indicating a bullish setup, with Nifty taking support from a rising trendline and maintaining a positive primary trend, according to market analysts.

The daily chart shows a bullish candle for the Nifty 50, and the immediate support is at 23,300. A pullback to 23,450–23,400 presents a buying opportunity for the next session, according to Samco Securities.

The Bank Nifty would need a decisive breach above the 52,000 zone to establish conviction and thereafter anticipate further rises. The support would be near 50,700 levels of the trendline zone for the bias to be maintained positively, according to Vaishali Parekh, vice president of technical research at Prabhudas Lilladher Pvt.

The larger market texture is still non-directional; hence, level-based trading would be the ideal strategy for day traders, Kotak Securities Pvt. said in a note.

Moreover, markets this week will take cues from global macro data points and the progress of the monsoon back home. The Nifty is expected to consolidate at the current juncture with a bout of volatility amid the expiry of the expiry of monthly derivatives, Motilal Oswal Financial Services Ltd. said.

The GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India, was down 20 or 0.08% at 23,572 as of 06:41 a.m.

The Nifty June futures were up by 0.29% to 23,555 at a premium of 18 points. Open interest for the Nifty June futures was down by 1.84%.

The Nifty Bank June futures were up by 0.35% to 51,794.7 at a premium of 90.75 points. The open interest for the Nifty Bank June futures up by 6.14%.

For the Nifty Options expiring on June 27, the highest call open interest is at 24,000, while the highest put open interest stood at 23,000.

For the Bank Nifty Options expiring on June 26, the highest call open interest stands at 54,000, and the highest put open interest was at 49,000.

Overseas investors remained net sellers of Indian equities on Monday.

Foreign portfolio investors offloaded stocks worth Rs 653.9 crore, while domestic institutional investors remained net sellers and offloaded equities worth Rs 820.5 crore, the NSE data showed.

India's benchmark equity indices ended Monday on a positive note after a lower open as shares of private banks and Mahindra & Mahindra Ltd. gained.

The NSE Nifty 50 closed 36.75 points, or 0.16%, up at 23,537.85, while the S&P BSE Sensex ended 131.18 points, or 0.17%, higher at 77,341.08. During the day, both indices fell as much as 0.6%.

The broader markets outperformed the benchmark indices, as the BSE MidCap and SmallCap ended 0.37% and 0.27% higher, respectively.

On the BSE, 13 out of 20 sectoral indices advanced. Metal was the worst-performing sector, while auto rose to become the top-performing sector.

• Satin Creditcare Network: The company has agreed to raise up to Rs 5,000 crore through non-convertible debentures. The microlender has also approved the appointment of its chief financial officer.

• Sun Pharma: The drugmaker successfully completed the merger of Taro Pharmaceutical Industries with its subsidiary company.

• RBL Bank: The lender will consider the fundraising proposal through QIP on June 27.

• AU Small Finance Bank: The lender will consider raising funds through QIP on June 27.

• Shalby: The company has terminated a franchise agreement with Madhuban Orthopaedic and Multispecialty Surgical Hospital due to a breach of various terms and conditions of the agreement by the franchisee. There will not be any significant financial impact on the company’s financial position.

• Craftsman Automation: The company signed an MoU with Sunbeam Lightweighting Solutions and Kedaara Capital for acquiring the whole or part of the business of Sunbeam.

• Borosil Renewables: The company opened its QIP and set the floor price at Rs 331.75 per share, which indicates a discount of 4.6% to the stock's previous close.

Most stocks in the Asia-Pacific region were trading higher after the US markets were dragged down by the chipmaker, Nvidia Corp., extending its losses for the third consecutive day.

Shares in Australia and Japan gained ground, while futures in South Korea also drifted higher, defying cues from New York trading on Monday.

The Nikkei 225 was trading 0.2% higher at 38,880, and the S&P ASX 200 was trading up 0.77% at 7,793.5.

Wall Street lost ground as the tech-heavy Nasdaq and S&P 500 was pulled down by a plunge in Nvidia Corp's scrip —  leading to over $400 billion loss in market cap. The technicals also pointed out that the chipmaker is in the over-bought territory, and has corrected over 12% in the past two days, according to Bloomberg.

The S&P 500 index and Nasdaq 100 declined by 0.31% and 1.09%, respectively, as of Monday. The Dow Jones Industrial Average rose by 0.67%.

• US Dollar Index at 105.50

• US 10-year bond yield at 4.23%

• Brent crude up 0.08% at $86.08 per barrel

• Bitcoin was up 1.46% at $60,345

The Indian rupee strengthened on Monday following a fall in Brent oil prices as they wilted under pressure from a stronger dollar.

The local currency strengthened by 7 paise to close at Rs 83.47 against the greenback, according to Bloomberg.