New Delhi, Jun 26
The Nifty 50 extended its northward journey for the third consecutive session, moving closer to 23,900 for the first time in its history on June 26, a day before the expiry of monthly futures & options contracts on June 27. However, the broader markets consistently underperformed benchmarks. The rally was backed by banking & financial services, consumption stocks, and index heavyweight Reliance Industries. The index now trades above the upper end of the rising channel with a positive bias in momentum indicators (RSI and MACD), signaling further upside towards 24,000-24,200 levels in the coming sessions, with support at the 23,600-23,700 area, experts said.
The Nifty 50 opened above 23,700 and extended its uptrend further as the day progressed. The index hit a new high of 23,889.90 in late trade, before closing 147.50 points or 0.62 percent higher at 23,868.8, marking a new closing high. It has formed a bullish candlestick pattern for three days in a row on the daily charts with increasing volumes.
Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas, believes that the Nifty is likely to target levels of 24,150 from a short-term perspective.
“Any dips towards the support zone of 23,700 – 23,680 should be used as a buying opportunity. Daily and hourly momentum indicators are in sync, so momentum is likely to continue,” he said.
The monthly options data also suggested the Nifty moving towards the 24,000 mark, where the highest Call open interest was built up, with support at 23,700-23,500 levels.
On the Call side, the maximum open interest was seen at the 24,000 strike, followed by the 24,500 and 24,200 strikes, with maximum writing at the 23,900 strike, and then the 24,000 and 24,200 strikes. On the Put side, the 23,000 strike holds the maximum open interest, followed by the 23,500 and 23,700 strikes, with maximum writing at the 23,800 strike, and then the 23,700 and 23,300 strikes.
Bank Nifty
The Bank Nifty also continued its upward rally and traded well above the upper end of the rising channel. The index rose 265 points to end at a fresh closing high of 52,870.50, forming a bullish candlestick pattern with a lower shadow on the daily charts, with increasing volumes.
It continued strong momentum, just shy of the 53,000 mark where fresh Call writing is visible.
The undertone remains bullish, and a buy-on-dip approach is advisable with immediate strong support at the 52,500-52,400 level, according to Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
Meanwhile, the India VIX, the fear gauge, declined 1.86 percent to 14.05, from 14.31 levels, remaining in range.
