NIFTY AND NIFTY BANK BOTH INDICES HAVE SEEN A SHARP UPSIDE RALLY

NIFTY:

The NIFTY opened at 18748.55 with a gap up of 57 points. The index initially consolidated and saw a minor dip which found support quickly just above 17700.The Index recorded its intraday low at 17714.25 and started moving higher. Initially, the momentum was not very strong but later prices have moved very sharply and moved above 17800.The rally lasted till the end. Prices have recorded its intraday high at 18829.25 and finally closed at 18817.40 near its day’s highs with a gain of 126.20 points or 0.68% up. All the sectoral indices have closed with a gain today except FMCG and OIL GAS which ended with a minor loss. BANK, FINANCIAL, and REALTY led the bulls by ending more than 1% higher. Despite of a sharp intraday rally, a narrow trading range inside 18650-18900 remained intact for the past tenth trading days. Since the range is very narrow, we may see a breakout very soon. The short-term trend is up as the index is moving around the lifetime highs. We should look for buying only as far as prices are staying above 18650.

BANK NIFTY:

The BANK NIFTY opened at 43804.55 with a gap up of 151 points. The Index started a consolidation process which eventually broke on the upside. Prices recorded its intraday low at 43693.15 and saw a sharp upside move after the breakout. The rally lasted till the end, prices recorded its intraday high at 44194.65 and finally closed at 44164.05 with a gain of 511 points. PSU and PVT BANK, both indices, have performed almost the same today, saw a sharp intraday up move, and closed with a gain of 1.02% & 1.11% respectively. Within the index, in terms of points, HDFC BANK contributed the highest on the upside while INDUSIND BANK contributed the lowest. It was again a tale of two halves. Prices have moved narrowly in the first half while seeing a sharp surge in the second half. A trading range inside 43400-44500 remained intact. The short-term trend is sideways and we may see a breakout very soon.

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UPCOMING ECONOMIC DATA   

NEWS UPDATES

• Indices close near day’s high, The Sensex was up 446.03 points or 0.71 percentat 63,416.03, and the Nifty was up 126.20 points or 0.68percentat 18,817.40. Nifty again failed to breach the all-time high levels, closing about 70 points shy of the level.

• The merger between the country’s largest private sector bank, HDFC Bank, and mortgage lender, HDFC Ltd is expected to be completed by July 1, said Deepak Parekh, Chairman, Housing Development Finance Corporation Ltd (HDFC).

• Market regulator the Securities and Exchange Board of India (SEBI) has approved Tata Technologies Ltd’s initial public offering (IPO), the first public issue from the Tata group in nearly 20 years.

• India’s current account deficit (CAD) fell to just $1.3 billion in the January-March period, data released by the Reserve Bank of India (RBI) on June 27 showed, helped by cooling oil prices and a booming services sector.

Source: Economic Times,  Indian Express, Business Today, Livemint, Business Standard, Bloomberg Quint

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