Trade Setup For June 14: Nifty Likely To See Profit Booking, Long-Term Bullish Trend Intact

The benchmark gauges are poised for some profit booking at the current levels, but the overall bullish trend remains, according to market analysts.

The broader trend for the NSE Nifty 50 remains positive, but it just seems possible for a timewise correction to relieve the overbought setups on the lower timeframe charts, according to Ruchit Jain, lead research analyst at 5paisa.com. "The immediate supports are placed around 23,200 and 23,000 and any dip towards the support should be seen as a buying opportunity."

On a daily scale, the index has formed a bearish belt hold pattern. As per this pattern, if the index sustains below 23,350, then profit booking is expected, according to Neeraj Sharma, assistant vice president of technical and derivatives Research at Asit C Mehta Investment Interrmediates Ltd.

The market has been consolidating over the last few days with positive bias and is slowly and gradually inching up, according to Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services Ltd. "The uptrend is likely to continue, supported by robust domestic macros, healthy monsoon prediction and strong earnings expectation."  

The Bank Nifty indicates weakness as the index has formed a bearish Marubozu candlestick pattern following the formation of a tri-star doji, Sharma said. "On the downside, immediate support for the index is placed near 49,000 levels, where the 21-DEMA is placed."

The GIFT Nifty was trading 19 points or 0.08% lower at 23,401.50 as of 06:39 a.m.

Nifty June futures were up by 0.18% to 23,399.25 at a premium of 0.35 points. Open interest for Nifty June futures was down by 2.86%.

Nifty Bank June futures were up by 0.02% to 49,912.65 at a premium of 65.95 points. The open interest for Nifty Bank June futures fell by 1.3%.

For Nifty Options expiring on June 20, the highest call open interest is at 24,000, while the highest put open interest stood at 22,500.

For Bank Nifty Options expiring on June 19, the highest call open interest stands at 50,000, and the highest put open interest was at 50,000.

Overseas investors turned net sellers on Thursday after a day of buying.

Foreign portfolio investors offloaded stocks worth Rs 3,033 crore, while domestic institutional investors sold equities worth Rs 553.9 crore, according to provisional data from the National Stock Exchange.

The benchmark equity indices extended their rally for a third consecutive day on Thursday to close at their highest levels as macro data uplifted the sentiment.

The NSE Nifty 50 closed 75.95 points or 0.33%, up at 23398.90, while the S&P BSE Sensex ended 204.33 points or 0.27%, higher at 76810.90. During the day, the Nifty recorded a new intraday high of 23,481.05 points and the Sensex also hit a record high of 23,481.05.

Fifteen out of the 20 sectoral indices on the BSE advanced, with real estate rising the most and utilities falling the most.

• Ambuja Cement: The company will acquire a 100% stake in Penna Cement Industries at an enterprise value of Rs 10,422 crore.

• Vodafone Idea: The company board has approved raising Rs 2,458 crore through the issuance of shares on a preferential basis. The company will use the funds to clear part of its outstanding debt, expand its 4G coverage, and launch 5G services.

• Puravankara: The board approved in-principal approval for raising up to Rs 1,000 crore via QIP.

• Wipro: The company launched an on-premises GenAI solution in a pact with Hewlett-Packard Enterprise.

• Life Insurance Corp.: The company increased its stake in Dr Reddy’s Laboratories from 4.95% to 5.01%.

Most benchmarks in the Asia-Pacific were trading lower on Friday as the Bank of Japan prepares to deliver its policy decision during the day.

The Nikkei 225 was 121.52 points or 0.31% lower at 38,598.95, and the S&P ASX 200 was 27.20 points or 0.35% down at 7,722.50 as of 06:37 a.m. The Kospi Index was 11.32 points or 0.41% higher at 2,766.21.

A surge in US stocks dissipated due to increased political risks in France. This led to the nation's 10-year bond premiums reaching their widest margin since 2017 compared to their safer German counterparts, according to Bloomberg.

The S&P 500 Index rose 0.23% and the Nasdaq Composite gained 0.34%, respectively, as of Thursday. The Dow Jones Industrial Average fell 0.17%.

• US Dollar Index at 105.26

• US 10-year bond yield at 4.24%

• Brent crude down 0.92% at $81.99 per barrel

• Nymex crude down 1.07% at $77.78 per barrel 

• Bitcoin was down 0.02% at $66,660.75

The Indian rupee closed flat against the dollar on Thursday amid falling Brent crude prices and unchanged US interest rates.

The local currency ended flat at Rs 83.55 against the greenback, according to Bloomberg data.