By Ajit Mishra
Bears remained underneath management in May expiry and pushed the markets additional decrease. Global headwinds like concern of aggressive charge hikes from the US Fed, the continuing Russia-Ukraine War, and Covid-led lockdown in China proceed to dent the sentiment. On the home entrance, the earnings season turned out to be combined, in absence of any main optimistic shock. However, intermediate shopping for in choose index majors capped the injury until the top.
We’re carefully following the worldwide markets, particularly the US, for cues and principally are nonetheless reeling underneath stress. We see some intermediate consolidation/rebound on account of oversold positions nonetheless there’s no signal of development reversal but. With the earnings season within the final leg, we strive to determine the place the NSE Nifty 50 and Nifty Bank are heading in June month and among the shares which have the potential to do properly amid volatility.
Nifty 50
It plunged sharply decrease after the consolidation breakdown from the 16800-17400 vary and reached nearer to the March low i.e. 15,670 very quickly. It has been consolidating in a broader vary i.e. 15,800-16,400 for the final 2 weeks and buying and selling nearer to the higher band of the identical.
We thus suggest ready for both facet’s decisive break for the subsequent directional swing. In case of a breakout, the 16,700-16,900 zone, which was earlier appearing as assist, would act as a powerful hurdle. On the draw back, 15,400 ranges maintain vital assist after 15,800.
Nifty Bank
The banking index initially traded in keeping with the Nifty and declined sharply. However, the scenario improved with restoration within the choose banking majors within the ultimate weeks. It appears comparatively stronger than Nifty at current nonetheless a decisive breakout above 36,000 is required to keep up this bias. On the flip facet, the tone would reverse under the 33,500 mark. Amid all this, members ought to selectively search for shopping for alternatives within the non-public banking house and like PSUs for shorting as and when the chance arises.
Stocks to observe in June expiry sequence
Stocks like Ambuja Cements, Apollo Tyres, Bajaj Auto, Britannia Industries, Colgate Palmolive, Eicher Motors and Jubilant FoodWorks, Kotak Mahindra Bank, Mahindra & Mahindra (M&M), Marico and TVS Motor are strongly positioned on charts and are more likely to carry out properly in June sequence.
(Ajit Mishra, VP – Research, Religare Broking. Views expressed are the creator’s personal.)
Source: www.financialexpress.com”