Pre Market Report 26-Jun-2023

Introduction

In this section, PF Sunder introduces the pre-market report and provides an overview of the current market situation.

• The US features are slightly higher and Asia is mixed as usual.

• Some markets are higher, some markets are lower, but some markets are trying to recover from the bottom.

• SDX Nifty is slightly higher.

Market Recovery

In this section, PF Sunder discusses how different sectors of the market have been recovering or falling.

• Earlier, the Bank Nifty was very weak but has started to recover slowly.

• HDFC Bank recovered first, followed by ICC Bank and Indus in Bank on Friday.

• However, other sectors faced problems. One major news was that U.S regulatory authorities were looking at other issues. Adani Enterprise fell 10 percent intraday and closing basis equals seven percent.

• TCS had bad news where people took bribes for offering jobs.

IT Stocks

In this section, PF Sunder talks about how IT stocks have been performing poorly.

• Accenture results came out with reduced guidance which was negative news for IT stocks.

• Large-cap variety stocks such as Infosys and TCS are still 20% away from all-time high while Nifty is trying to cross all-time high.

Global Cues

In this section, PF Sunder discusses global cues affecting the market.

• European markets were down for five to six continuous trading sessions; Germany was down for six consecutive trading sessions; Japan was down for five-six consecutive trading sessions; most European markets and U.S markets also faced problems.

• The global cues were not good due to news flow about Adani Enterprises and IT stocks along with profit booking in Reliance indices.

Nifty's Double Top

In this section, PF Sunder talks about how Nifty has made a double top and needs to take out 18900 all-time high in order to be bullish.

• Nifty went very close to all-time high and then fell more than 200 points.

• Therefore, it is reasonable to assume that Nifty has made a double top at 18900. At 16800, it has made a double bottom.

• The support for the entire month is between eighteen thousand five hundred to nineteen thousand.

Market Behavior

In this section, PF Sunder discusses market behavior and how it may affect trading.

• Despite falling more than 100 points on Friday and more than 200 points from Thursday low to Friday closing, there was no increase in the weeks.

• This indicates that this is just normal profit booking and nothing too worrying.

• However, looking at global cues and other things, it's a little bit of a worrying factor actually.

Trading Range

In this section, PF Sunder talks about the trading range for the market.

• The range for the entire month has been between eighteen thousand five hundred to nineteen thousand.

• Eighteen thousand nine hundred is going to be taken out or not so that's the question.

• People who sold 18 800 call would have collected about 100 point premium so that their Break Even would be around eighteen thousand nine hundred which is all-time high which is a double top.

Bank Nifty

In this section, PF Sunder discusses Bank Nifty and its potential impact on the market.

• Bank Nifty may lead their next leg up rally if there is some good recovery in HDFC Bank, ICICI Bank, and Axis Bank.

• The hope for it is very little and Reliance has already run up so people are now waiting for the bank Nifty to lead the rally.

• Bank Nifty has already hit all-time high mid-cap Nifty already all-time high sensex hit all-time high now we are just waiting for Nifty.