Post Market Report as on 16th June and Outlook for 17th June

Indian equity benchmarks ended higher for the third consecutive session on June 16, supported by easing geopolitical tensions following the US-Iran agreement and strong buying interest in IT, FMCG, realty and select heavyweight stocks.

After opening on a positive note, the market extended gains in early trade and remained largely rangebound for most of the session. Benchmark indices touched fresh intraday highs in the second half, with the Nifty 50 briefly crossing the 24,000 mark. However, the index failed to sustain above the psychological level amid some profit booking and eventually settled just below it, ending near the day's high.

At close, the Sensex was up 544.15 points or 0.71 percent at 76,808.48, and the Nifty was up 135.25 points or 0.57 percent at 23,989.15.

However, the broader market underperformed the benchmark indices, with the Nifty Midcap 100 and Nifty Smallcap 100 indices gaining 0.4 percent each.

Biggest Nifty gainers were HCL Technologies, Tata Consumer, HUL, Bajaj Finserv, NTPC, while losers included Hindalco, JSW Steel, HDFC Life, Eicher Motors and Apollo Hospitals.

Except Auto, Pharma, PSU Bank, Metal, all other sectoral indices ended in the green with Information Technology, Consumer Durables, Energy, Media, FMCG, Realty up 1-2 percent.

The Indian rupee extended its winning streak for a third consecutive session on June 16, appreciating 15 paise to settle at 94.56 against the US dollar, compared with its previous close of 94.71.

Outlook for June 17

Following a positive start, the index maintained its strength throughout the day. On the hourly chart, the Nifty has been sustaining above the 20 EMA, indicating a positive short-term trend.

Overall, the index remained range-bound during the weekly NSE options expiry session. The near-term sentiment continues to be positive; however, the upside may remain limited, with choppy price action likely to persist.

On the higher side, immediate resistance is placed in the 24,070–24,200 zone, where the Nifty may encounter selling pressure. On the downside, immediate support is placed at 23,900, followed by 23,700.

Technical View

Technically, after a muted open, the market held positive momentum throughout the day. It has formed a small bullish candle and is also maintaining a higher bottom formation on intraday charts, which supports a further uptrend from the current levels.

We are of the view that the intraday market trend is upward, but a fresh rally can only be expected after the 24,000 level is surpassed. Post the 24,000 breakout,  the market could move up to 24,100–24,200. On the flip side, 23,850 and 23,800 would act as key support zones for day traders. Below 23,800, the uptrend would become vulnerable. If the market falls below this level, traders may prefer to exit their long positions.

Best Regards

Team Equisigma