Nifty eyes 16,000 amid bouts of consolidation; here’s what investors should do on Tuesday

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Markets reversed early losses and ended with marginal gains on Monday. The smart recovery in second half of session helped the benchmark indices to end at record closing high on June 14, supported by Reliance Industries, Infosys, L&T and Bajaj Finance.

The Sensex closed at 52,551.53, up 76.77 points, or 0.15%, while the Nifty closed at 15,811.85, up 12.50 points, or 0.08%.

The Nifty Bank declined 96.80 points to close at 34,950.60 on June 14.

In sectoral indices, IT, energy and PSU bank indices ended in the green, while selling was seen in the power, realty and metals.

Among broader indices, the BSE midcap and smallcap indices closed 0.56% and 0.11% lower

Tata Motors, Reliance Industries, Wipro, Divis Labs and Bajaj Finance were among major gainers, while losers included Adani Ports, Coal India, Kotak Mahindra Bank, HDFC and Maruti Suzuki.

Adani Group stocks recovered from lows after the company denied reports stating that NSDL has frozen the accounts of 3 foreign funds holding shares in group companies. All six listed Adani group companies had plunged on stock exchanges to hit lower circuits after the development was reported.

Foreign institutional investors (FIIs) net sold shares worth Rs 503.51 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 544.26 crore in the Indian equity market on June 14, as per provisional data available on the NSE.

In news developments, India’s wholesale price inflation climbed to 12.94%, owing to rising crude oil prices and cost of manufactured goods. Low-base effect also spurred the index to an all-time high in May 2021.

Here’s how experts see markets trading on Tuesday 

Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities 

The market opened higher today but liquidation in the positions of Adani Group of companies triggered massive selling and dragged Nifty to the level of 15,606. Later the markets witnessed a gradual recovery which pulled the market back to the highest level of the day. It was completely unexpected to recapture the levels of 15,800 but gains in Reliance, Infosys and Bajaj Finance made it possible. The formation of the market is suggesting a bullish continuation, however, for that the market would consolidate between the levels of 15,850 and 15,700. Once the market starts trading and sustaining above the levels of 15,850 then it would not be difficult for the market to conquer the levels of 16,000/16,050. Buying is advisable if the market drops to 15,700/15,720 levels. The Bank-Nifty has formed a Dragonfly Doji, which is bullish for the sector and for the market.

Ajit Mishra, VP – Research, Religare Broking

Markets ended almost unchanged in a highly volatile trading session amid mixed cues. Markets are seeing buying interest on every dip and it shows that bulls are in control. Apart from the domestic factors viz. inflation and monsoon updates, the upcoming US Fed meet will be in focus. We reiterate our bullish yet cautious view on the market and suggest maintaining stock-specific trading approach. We expect Nifty to test the next milestone of “16,000” soon.

Manish Shah, Founder, www.Niftytriggers.com

Nifty witnessed a volatile trading session on Monday but finally closed the day with a net gain. At one point Nifty was down by some 180 points and then there was a bounce off the support zone at 15550-15600. The pattern that stands out is a candle with a long lower shadow which means buyers acted in concert in pushing the index higher from the support zone. Since last several days Nifty has gone in a trading range between 15,850-15,600. The overall trend direction is still up. Failure of Nifty to break below 15,600 is a sign of strength. If Nifty manages to break and hold above 15,850 we could see a rapid move to 16,000 over the next 2-3 days.