In the latest market analysis, Sudeep Shah, Deputy Vice President & Head of Technical & Derivative Research at SBI Securities, shared valuable insights about the ongoing June F&O series and the broader market outlook. Here are the key takeaways:
Key Highlights from the Expert View
🔍 Positive Long-Term Trend
- Over the last 18 years, the Nifty and Bank Nifty have displayed a consistent positive bias during June series.
- On average, Nifty has delivered 2.3% gains, while Bank Nifty posted 2.9% gains during June in the past.
📊 Current Market Setup
- Nifty and Bank Nifty are currently showing a positive setup on the technical charts.
- Both indices witnessed minor retracements after strong rallies, which is considered healthy consolidation.
🌄 Support & Resistance Levels
Nifty:
- Support: 24,400 – 24,200
- Resistance: 24,700 – 25,000
Bank Nifty:
- Support: 52,400 – 52,000
- Resistance: 53,500 – 54,000
🔄 Sectoral Outlook
- Banking, Auto, FMCG, and Infra sectors are expected to outperform.
- Stocks in these sectors are showing positive chart setups.
Technical Perspective
Sudeep Shah emphasized that:
- The intermediate trend remains upward as long as Nifty sustains above 24,400 and Bank Nifty holds above 52,400.
- Volatility is expected to cool further as India VIX has come off recent highs, promoting stability in the options market.
- Any dips toward support zones should be used as buying opportunities.
Final Takeaway
Historically, the June F&O series has a positive seasonal bias for both Nifty and Bank Nifty. The current market setup aligns with this trend.
- Traders should watch for sustained strength above resistance zones to confirm further uptrend.
- Dips toward the support areas present favorable risk-reward for fresh long positions.
📅 Summary Points
- Nifty and Bank Nifty have historically performed well in June.
- The current consolidation is healthy and not a sign of trend reversal.
- Support zones to watch: Nifty (24,400 – 24,200), Bank Nifty (52,400 – 52,000).
- Sector focus: Banking, Auto, FMCG, Infra.
🖊️ Disclaimer
This blog post is for educational purposes only. Views are based on the article published in Economic Times and represent the expert opinion of Sudeep Shah.
Please consult with a SEBI-registered financial advisor before making any investment decisions.