Here’s how analysts read the pulse of the market
Vinod Nair, head of research at Geojit Investments, said equity markets saw profit booking following a recent relief rally as investor sentiment dampened after the unexpected cancellation of peace talks between the US and Iran. He noted that the IT index experienced a sharp correction, due to Accenture’s soft outlook, which raised concerns about discretionary and digital spending. “In the near term, investors are likely to adopt a cautious tone, with participants awaiting further clarity on the peace deal and monitoring the slow progress of the southwest monsoon. However, a buy-on-dips strategy appears prudent, supported by the current comfort in oil prices and expectations of earnings revival,” he added in H2FY2.
US stocks
US markets were closed on Friday for the Juneteenth holiday. In the previous session, Wall Street rose sharply, with the S&P 500 up 1.1 percent, the Dow Industrials up 0.1 percent and the Nasdaq Composite up 1.9 percent on strong technology-driven buying.
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European markets
European markets closed lower on Friday as investors remained cautious amid geopolitical uncertainty and stalled talks between Iran and the United States. Germany’s DAX closed down 0.16 percent at 24,985.82, while France’s CAC 40 fell 0.55 percent at 8,421.14. Britain’s FTSE 100 also ended down 0.35 percent at 10,363.27, reflecting lower sentiment across the region.
Tech View
The Nifty started its five-session winning streak and formed a small-bodied bullish candle on the daily chart, said Nilesh Jain, head of technical and derivatives research at Centrum Finverse. Despite the intra-day weakness, the index saw a strong recovery from the lows and managed to close above 24,000 on a weekly basis, he added.
“The broad trend remains positive as the index continues to trade above its short-term 50-DMA, placed at 23,840, maintaining the possibility of a gradual move towards 24,400 in the near term. Momentum indicators also remain supportive, with the MACD maintaining a buy in RSI 6 crossover and a crossover above the RSI. On the undertone, the India VIX fell 13% during the week. was stabilized below 13 and any further reduction in volatility could provide additional support to positive market sentiment,” the analyst said.
“Overall, the technical outlook remains bullish, with support at 23,900 and positional support at 23,800, while resistance is seen in the 24,200-24,250 zone. A buy-on-dips strategy should be adopted,” said Vatsal Bhuva, technical analyst at LKP Secur.
Most active stocks in terms of turnover
Infosys (Rs 4,767 crore), Reliance Industries (Rs 3,279 crore), Bharti Airtel (Rs 3,034 crore), TCS (Rs 2,776 crore), HDFC Bank (Rs 2,639 crore), New India Assurance (Rs 2,366 crore), and IFCI (Rs 17) were the most active stocks. NSE in terms of value. High activity in a counter in terms of value can help identify counters with the highest trading turnover in a day.
Most active stocks in terms of volume
Vodafone Idea (traded share: 41.62 crore), IFCI (traded share: 20.58 crore), Suzlon Energy (traded share: 13.99 crore), Yes Bank (traded share: 13.25 crore), New India Assurance (traded share: 11.96 crore and Electric share: 11.96 crore) Zee Entertainment in terms of volume on NSE Enterprises (traded shares: 7.5 crore) was one of the most actively traded stocks.
Stocks show interest in buying
New India Assurance, Transformers & Rectifiers, Berger Paints, Schloss Bangalore, Caplin Point, ITC Hotels and Offer Housing Finance were among the stocks that saw strong buying interest from market participants.
52-week high
Among those hitting their 52-week highs on the NSE were Schloss Bangalore, Caplin Point, GE T&D India, HFCL, Carborundum Universal, Anand Rathi Wealth and Craftsman Automation.
Selling pressure is seen in stocks
Stocks that saw significant selling pressure included FACT, Infosys, Bata India, Adani Wilmar, ICICI Pru Life, LTI Mindtree and Balrampur Chinese.
52-week low
Infosys, LTIMindtree, TCS, EID Perry, Tata Elxsi and Wipro were among those that hit 52-week lows on the NSE.
The sentiment meter favors the bulls
Of the 3,401 stocks traded on the NSE on Friday, June 19, 1,760 stocks advanced, 1,522 declined, while 119 stocks remained unchanged.
(Disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. These do not represent the views of Economic Times)
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