Introduction
“Indian Market Outlook: Cautious Start Post Modi’s Oath” As Narendra Modi takes his oath for a new term as Prime Minister, the Indian stock market is gearing up for a cautious start on Monday, June 10. Mixed global cues and recent trends in the Gift Nifty signal a tepid beginning for the Nifty 50 and Sensex indices. This blog delves into the market trends, technical analysis, and expert recommendations to help investors navigate the trading session.
"Indian Market Outlook: Cautious Start Post Modi's Oath" Market Recap and Current Trends
On Friday, the Indian stock market closed at record highs following the Reserve Bank of India’s (RBI) policy announcement. The Sensex surged by 1,618.85 points (2.16%) to close at 76,693.36, while the Nifty 50 saw a rise of 468.75 points (2.05%), closing at 23,290.15. This significant upmove was marked by the formation of a long bull candle on the daily chart, reaching the upper trajectory of Tuesday’s long bear candle at 23,200 levels.
Nifty 50: Technical Analysis and Predictions Positive Short-Term Trend
The Nifty 50 is expected to see a minor dip from its highs in the short term, presenting potential buying opportunities. According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, the Nifty has regained the sharp fall from the election result day within just three sessions, indicating a positive short-term trend. However, as the index approaches the resistance levels between 23,300 and 23,400, a slight pullback could be expected.
Key Levels to Watch
Rupak De, Senior Technical Analyst at LKP Securities, maintains a positive outlook, suggesting that the market remains a ‘buy on dips’ scenario as long as the Nifty stays above 23,000. The index could potentially move towards 23,500 – 23,600 on the higher end. Conversely, profit booking might occur if it drops below 23,000.
Bank Nifty: Bullish Momentum
The Bank Nifty index closed on Friday at 49,803.20, rallying 511.30 points (1.04%). According to Rupak De, the Bank Nifty has demonstrated bullish momentum, supported by its 10-day moving average and a bullish engulfing candle on the daily chart. The key resistance level is set at 50,500, with crucial support at 49,200. Breaching the resistance level could pave the way for further upward movement.
Expert Recommendations for Investors Navigating High Volatility
V.L.A. Ambala, Co-founder of Stock Market Today (SMT), advises short-term traders to remain cautious given the market’s high volatility. The Nifty’s technical indicators suggest elevated market valuations with the RSI at 76 (monthly), 66 (weekly), and 59 (daily). Ambala recommends staying invested and monitoring price movements for potential dip-buying opportunities of 5-15% in the broader market index.
Conclusion
With Modi’s new term underway and the RBI’s policy updates, the Indian stock market is expected to open weakly but remains positioned for potential growth. Investors are advised to watch the resistance and support levels closely and consider buying opportunities during minor dips. As always, consulting with certified financial experts before making investment decisions is recommended.
Stay tuned for more updates and analysis on the Indian stock market.
Disclaimer: The views and recommendations expressed in this blog are those of individual analysts or broking companies. They do not necessarily reflect the views of this blog. Always consult with certified financial experts before making any investment decisions.
