Nifty, Sensex snap 6-day losing streak to end in green; volatility to persist, ‘use sell on rise’ strategy

Snapping the 6-day losing streak, the BSE Sensex closed 237 points, or 0.46 per cent, higher at 51,598 and the NSE Nifty 50 shut shop at 15,530, up 57 points or 0.37 per cent.

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Markets may remain volatile till 24 June. Sell on rise would be advisable in coming days until 15800 levels are attained

Extreme volatility gripped the markets today as the benchmark indices swung in gains and losses all through the day. Snapping the 6-day losing streak, the BSE Sensex closed 237 points, or 0.46 per cent, higher at 51,598 and the NSE Nifty 50 shut shop at 15,530, up 57 points or 0.37 per cent. Sectorally, the Nifty Metal, and Oil and Gas indices sunk over 3 per cent each, while the PSB index dropped over 2 per cent. On the higher side, the Nifty FMCG index added around 2 per cent. Shares of metal and energy companies reeled under severe pressure. Markets may remain volatile till 24 June. Sell on rise would be advisable in coming days until 15800 levels are attained, said analysts.

Mohit Nigam, Head – PMS, Hem Securities

“Indian equity markets oscillated around neutral lines with positive bias in the late afternoon session and closed with a gain of 0.37% on the back of buying in FMCG and Consumer Durables stocks. Traders found some support as members of the economic advisory council to the prime minister — Sanjeev Sanyal has said that the country’s internal market is in a good position and its macroeconomic stability is in a comfortable zone despite the ravage by the pandemic. On the global front, Asian markets were trading mixed despite Wall Street’s positive close on Friday. A cautious undertone prevailed due to lingering concerns over inflation and growth. European markets were trading higher as investors reacted to central banks’ hawkish rhetoric. On technical front, immediate support and resistance for Nifty50 is 15,000 and 15,700 levels. In case of Bank Nifty, 32,300 may act as immediate support and 33,150 may act as immediate resistance level.”

Vinod Nair, Head of Research at Geojit Financial Services

“Positive trends in the global markets inspired domestic market to trade positively with large caps gaining the most while mid & small caps continued to trade with cuts. Prevailing inflationary pressure and concerns over policy tightening limited the upside. Among the sectors, metals were the top laggard due to a sharp fall in commodity prices along with a fall in global & domestic demand.”

Deepak Jasani, Head of Retail Research, HDFC Securities

“Nifty closed in the positive on June 20, breaking a 2 day losing streak. Nifty opened flat, sold off early morning and later showed alternate bouts of buying and selling. Fall in crude oil prices has given some positive cues to markets like India and resulted in fall in bond yields. Nifty seems to have stabilised on a day when the US markets are shut. Having formed a double bottom at 15183-15191, Nifty could head towards 15670, if no new negative developments crop up on the horizon.”

Om Mehra, Research Associate, Choice Broking

“The Indian market remained under pressure at the beginning of the new week. However in the second session some recovery is observed from different sectors. Sensex settled at 51597.84 gaining 237 points or 0.46 percent and Nifty ended at 115350.15 with gain of 56 points or 0.37 percent. However, Bank nifty closed the session at 32684.80 levels after losing 58 points or 0.18 percent. INDIA VIX has cooled off 1.52 percent intraday and settled at 22.41.”

“Technically, the Nifty has formed a bullish candle in the daily time frame. According to volume profile 15150 may act as an immediate support. Indicators such as MACD and RSI are still struggling to overcome the oversold zone in the daily time frame. From the time cycle prospect in hourly chart, Index would remain volatile till 24th of June. Lower Bollinger band in daily time frame indicates minor pullback rally expected in coming days. The Nifty may find support around 15120 followed by 15050 levels while on the upside 15750 may act as an immediate hurdle. On the other hand, Bank nifty has support at 32000 levels while resistance is placed at 33550 levels. Overall, some sectors may bounce on rotation basis; however sell on rise would be advisable in coming days until 15800 levels are attained.”

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