THE NIFTY MOVED UP TODAY, BROKE ABOVE THE 18450 – 18650 TRADING RANGE

NIFTY:

The NIFTY opened at 18665.60 with a gap up of 66 points. The index started a consolidation process after opening higher which lasted till the afternoon. Prices have moved within a narrow range of just 40 points and eventually broke on the upside after recording its intraday low at 18636. The index then saw a sharp rally. The upside move lasted till the end and prices have recorded its intraday high at 18738.95. The index finally closed at 18726.40 near the day’s high with a gain of 127.40 points or 0.68% up. All the sectoral indices have moved up today and closed with gains, FMCG, METAL, REALTY, and OIL GAS led the bulls today and ended with a gain of over 1% followed by AUTO and IT. The short-term trend is up again which was sideways before. We have mentioned a narrow trading range inside 18450-18650. The index broke out decisively. The pattern target for this breakout comes around 18850 which is very near to the lifetime highs. Support should now emerge around the 18600 level while resistance is visible near the lifetime high recorded at 18887.60. We can round it off to 18900. We should look for buying only as far as the index is moving above 18600 support.

BANK NIFTY:

The BANK NIFTY opened at 44318.70 with a gap up of 109 points. The index initially moved lower, filled the gap, and then fall further. Prices have found support around 44150 and then started consolidating there. The index has seen an upside move in the last two hours of trading Today, prices have recorded its intraday low at 44143.50, its intraday high at 44346.30, and finally closed at 44279.60 with a gain of just 70 points. PSU BANK outperformed today, saw an upside move, and closed with a gain of 0.72%. PVT BANK also move up today and ended with a gain of just 0.12%. Within the index, in terms of points, HDFC BANK contributed the highest on the upside while KOTAK BANK contributed the lowest. The last four trading days were very narrow and indicating a sharp move is about to come. A trading range is also visible inside 43700-44500. This narrow range should resolve very soon. The short-term trend is sideways however, the bias is bullish as prices have bounced up after a minor correction. As far as prices are moving above 43700, we should look for buying only.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

Domestic                                                                                                                                                  International
INR: Interest Rate Decision on 08th June, 2023 INR: Cash Reserve Ratio on 08th June, 2023	USD: Initial Jobless Claims on 08th June, 2023 USD: CPI (MoM) (May) on 13th June, 2023

NEWS UPDATES

• Indian equity benchmarks advanced for the fourth consecutive session to close at a six-month high in trade on Wednesday as metals, realty and fast moving consumer goods sectors advanced. L&T Ltd., TCS Ltd., and Bharti Airtel Ltd. led the positive change on the indices. Indices closes nearly 0.85% shy of it’s record high. The headline indices closed near its all-time high ahead of RBI’s monetary policy decision on Thursday.

• The Union Cabinet has approved an increase in minimum support prices for all mandated kharif crops for the marketing season 2023–24. The government has increased the MSP of kharif crops to ensure remunerative prices for growers’ produce, according to a cabinet briefing by Piyush Goyal.

• The country’s largest carmaker Maruti Suzuki India on Wednesday launched Jimny priced between Rs 12.74 lakh and Rs 15.05 lakh (ex-showroom Delhi), as it eyes the top slot in the robustly growing sports utility vehicle segment in the country.

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

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