Indian benchmark indices continued their relentless climb today, setting fresh historical records in early morning trading. The S&P BSE Sensex crossed the 80,000 threshold for the first time, and the Nifty50 hit a new all-time high of 24,292, getting close to the 24,300 barrier.
Heavyweights led by HDFC Bank contributed significantly to the rise. Today, HDFC Bank’s stock increased by 3.66%, setting a new record high of ₹1794 per share. At 24,260, the Nifty 50 has gained 136 points as of right now. Of that gain, 51%, or 69.6 points, have come from HDFC Bank alone.
The benchmark Nifty witnessed profit booking on Tuesday following record highs above 24,200. We expect this impetus underway to continue with Nifty fusing at a higher zone, claimed Motilal Oswal Financial Services. There will be some volatility due to FED Chairman Powell’s speech and the publication of the meeting minutes.”
The long-term chart of the Nifty shows that it is still robust, and Nagaraj Shetti of HDFC Securities says that the consolidation trend will soon give way to a renewed upward impetus. There is immediate support at 23,980, and around 24,400 is the next upside resistance to keep an eye on.
The analysts predict that an increase in the MSCI weightage may occur if the bank’s stake falls below 55%. Currently, HDFC Bank has about a 3.8% weight in the MSCI EM index.
Wealth manager Nuvama Alternative & Quantitative Research noted that there might be a rapid weight change from 3.8% to 7.2% to 7.5% if the FIIs cut their stake from 55.50% to below 55%, which could result in inflows of $3.2 billion to $4 billion.
NIFTY50
Nifty’s 24,200 strikes, which functioned as a significant intraday resistance for Nifty, saw a lot of call-writing activity. The 24,000 Nifty strike, which is anticipated to provide solid support shortly, allowed the put writers to bolster their position even further, according to Ashwin Ramani, SAMCO Securities’ derivatives and technical analyst.
BANK NIFTY
Put writers (Bulls) left all Bank Nifty strikes between 52,300 and 52,900, while call writers stepped into the market. This resulted in a significant decrease in the Bank Nifty on Tuesday, according to Ramani. At the 52,000 strike, the put writers (1.79 lakh contracts) have a little advantage over the call writers (62K contracts), and the option activity during this strike will give indications about the future route of Bank Nifty.
NIFY 50 Prediction
At the fresh highs on July 2, the Nifty 50 entered a choppy movement and ended the day down 18 points.
Selling during rallies is probably more popular until the price crosses 24,250. On the other end, the Nifty is going to find immediate support at 24,000. A decline below 24,000 might lead to a pullback toward 23,850 or 23,700, according to LKP Securities Senior Technical Analyst Rupak De.
According to VLA Ambala, co-founder of Stock Market Today (SMT), the general trend is still positive, and any decline from the current levels presents a purchasing opportunity for investors with short- to medium-term investment horizons. Option traders need to hedge their positions based on the spot chart as of right now.
