Morning outlook 20th June 2024

Indian benchmark indices ended on mixed note in the highly volatile session on Wednesday after hitting fresh all-time high, intraday. The Sensex was up 36.45 points or 0.05 percent at 77,337.59, and the Nifty was down 41.90 points or 0.18 percent at 23,516.

Indices opened at a fresh record high however, erased all the gains in the initial hours and gyrated between gains and losses throughout the session to finish with marginal change.

Top Nifty gainers included HDFC Bank, Axis Bank, ICICI Bank, IndusInd Bank and Kotak Mahindra Bank, while losers were Titan Company, Maruti Suzuki, L&T, Hindalco and Bharti Airtel.

Among sectors, except bank and IT, all other indices ended in the red with auto, capital goods, metal, oil & gas, power and realty down 1-3 percent.

On the daily timeframe, the Index has formed a Bearish Engulfing candle with a probable bearish divergence in RSI which indicates a temporary pause in its uptrend

Nifty is facing Resistance at 23900/24000 and the support at 23,200/23000 levels, breaking this zone would trigger further momentum.

Sector specific Financial are looking good specially private banking space which is witnessing strong move. The Bank Nifty remains in a buy mode, and dips should be bought aggressively for targets of 52,100–52,500.

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UPCOMING ECONOMIC DATA

NEWS UPDATES

• India Grapples With 20% Rainfall Deficit As Monsoon Delays Worsen, IMD Reports. Between June 12 and 18, the country received 64.5 mm of rainfall, significantly lower than the long-period average of 80.6 mm.

• Axis Bank Ltd. plans to purchase an additional stake in Max Life Insurance Co. for a sum of Rs 336 crore. This acquisition will help the private bank strengthen its position in the life insurance business.

• The Reserve Bank of India’s (RBI) latest monthly bulletin on June 19 said the goal of aligning inflation with the target of 4 percent will remain work in progress as long as food prices pressure persists.

• Gautam Adani to invest $100 billion in energy transition over the next decade. India will start adding a trillion dollar to its GDP every 12 to 18 months, putting us on track to be a $30 trillion economy by 2050, Gautam Adani said.

Source: Moneycontrol, Economic Times,  Indian Express, Business Today, Livemint, Business Standard

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