TATA Motors at 7 year high, HDFC AMc rallies on bulk deal

The Markets Today in a nutshell

Technical Overview – Nifty

After wobbling in the morning sessions, Nifty bulls regrouped at lower levels as the benchmark index raced higher to close above 18,800 levels. Nifty on the daily chart is trading in a rising wedge pattern and presently prices are trading near the lower band of the pattern. 

As of now the index is trading above its 9 & 21-day exponential moving average and the momentum oscillator RSI (14) is hovering within the 55 – 70 range on the daily time frame. On the options front, (22nd June 2023 expiry) In Nifty 18,700 put followed by 18,800 put options has seen an increase in the writing position. Call writers were seen exiting the 18,800 strikes, indicating that the support is getting stronger. 

Nifty PCR stood at 1.The undertone of the benchmark index is bullish, maintaining the support of 18,650 and resistance is still intact at 18,900 levels.

Technical Overview – Bank Nifty

BANKNIFTY on 20th June witnessed a strong rebound from the lower levels and closed above 43,700 levels with a hammer-like candle formation on the daily time frame. Bank Nifty on the daily chart is trading in a rectangle pattern and presently prices have found support near the lower band of the pattern. 
As of now the banking index is trading marginally above its 50-day exponential moving average and the momentum oscillator RSI (14) is hovering near 50 levels on the daily time frame. 
On the options front, (22nd June 2023 expiry) In Bank Nifty 43,500 put followed by 43,400 put options have seen an increase in the writing position. Call writers were seen exiting the 43,700 strikes, indicating that the support is getting stronger. Bank Nifty PCR stood at 0.88. 
The undertone of the banking index is bullish, maintaining the support of 43,300 and resistance is still intact at 44,100 levels.

Indian markets

• Domestic equity indices capped off a turbulent trading session with notable gains on Tuesday.
• Despite hitting a mid-morning low of 18,660.65, the Nifty rallied to close above the 18,800 level.
• Fragile market sentiment prevailed, influenced by weak global cues. 
• A surge in last-hour buying, particularly in IT, auto, and metal stocks, provided the necessary push to elevate the indices.

Capital Flows

Global Markets

• The Dow Jones index futures declined 117 points, indicating a weak opening in the US stocks.
• Shares in Europe and Asia declined on Tuesday. Investors will be monitoring the U.K. this week, with inflation data due on Wednesday and a monetary policy announcement on Thursday.
• The Peoples Bank of China cut key policy rate on Tuesday for the first time in 10 months. The Chinese central bank slashed its one-year and five-year loan prime rate by 10 basis points each to 3.55% and 4.20% respectively.
• U.S. markets were closed on Monday for the Juneteenth holiday.
• US President Joe Biden hailed what he said was progress in restoring US-China ties after Secretary of State Antony Blinken wrapped up two days of meetings in Beijing, including talks with Chinese President Xi Jinping. President Xi Jinping pronounced the progress very good.

Stocks in Spotlight

• The share price of ZEEL fell over 6 percent on June 20, a day after the Securities Appellate Tribunal (SAT) adjourned its plea against a SEBI order till June 26, delaying the entertainment major’s merger with Sony Pictures Networks India, which is expected to be a key re-rating trigger for the stock. Zee shares are now down 50 percent from their high following the September 2021 merger announcement.
• Shares of Tata Motors Ltd touched a seven-year high on June 20 as sentiment for the company runs high on its strong growth prospects. Tata Motors has become the second largest in India in terms of sales outlets with 1,410 showrooms across the country, up from 862 in FY20. Its service centres increased to 855 from 653 three years ago.
• HDFC Asset Management Company jumped over 11 percent on June 20 even after Abrdn Investment Management, formerly Standard Life, offloaded its entire stake in the company. The total deal value stood at Rs 4,083.14 crore with BoFA Securities being the sole broker. Shares of HDFC AMC surged around 18 percent in the past three months and the scrip commands a market capitalisation of Rs 40,398 crore. 

News from the IPO world🌐

• Double-Digit returns for most 2023 IPOs with some surpassing 50%
• Mukka Proteins refiles DRHP with SEBI to launch IPO
• Greenchef Appliances IPO opens on 23rd June.

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