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Nifty Bank Stocks Power Up, Leaving Nifty in the Dust


Yesterday’s Pick

SENSEX 21 JUNE 77200CE Rs 7500 ( Per 10 Lot)
Short Term Pick CUB Rs 4,000 ( Quantity 1000)
CUMMINSIND Cash Rs 33,800 (Quantity 200)
BANKNIFTY 26 JUNE 50900CE Rs 14,250 ( Per 5 Lot)
GMRINFRA Cash Rs 8,200 (Quantity 1000)
AXISBANK 27JUN24 1210 CE Rs 11,375 ( Per 1 Lot)

Nifty Technical view

The Nifty 50 recently displayed a bearish candlestick pattern similar to a Bearish Engulfing pattern, although not exactly a classic example, on the daily charts. Despite this, momentum indicators like the RSI and MACD remained positive on longer timeframes. After six consecutive days of gains, the Nifty 50 saw some profit-taking as volatility increased. However, the index continued its upward trend, reaching a new all-time high of 23,664.

Put Call Ratio
The Nifty Put-Call ratio (PCR), which reflects market sentiment, fell to 1.10 on June 19 from 1.26 in the previous session. Typically, a rising PCR above 0.7 or exceeding 1 suggests traders are selling more Put options than Call options, indicating a strengthening bullish sentiment in the market. Conversely, if the PCR drops below 0.7 or moves towards 0.5, it signifies higher selling in Call options compared to Puts, reflecting a bearish sentiment in the market.

Indian Vix
Volatility kept rising, creating some discomfort for the bulls. The India VIX, known as the fear gauge, increased by 5.77 percent to 13.71 from 12.97. However, it still stayed below the 200-day Exponential Moving Average (EMA).

FII And DII Data
Foreign institutional investors (FIIs/FPIs) bought Indian stocks worth Rs 7,908.36 crore. Similarly, domestic institutional investors (DIIs) made net purchases of Indian stocks totaling Rs 7,107.80 crore during the same period.

Stocks in the news

Sun Pharmaceutical : Sun Pharmaceutical Industries Ltd received a warning letter from the United States Food and Drug Administration (USFDA) for its Dadra facility, as disclosed in a stock exchange filing. The warning letter highlights violations related to Current Good Manufacturing Practice (cGMP) regulations, according to the company.
State Bank of India : India’s largest public sector lender, State Bank of India (SBI), announced on June 19 that its board has approved raising up to Rs 20,000 crore through long-term bonds via a public issue or private placement during FY25.

Nifty and Bank Nifty Support and Resistance level

Nifty
Resistance 23,630, 23,685, and 23,780
Support based 23,435, 23,375, and 23,280

BankNifty
Resistance 51,845, 52,200, and 52,780
Support based 50,690, 50,330, and 49,750

Index Future levels

Nifty Futures buy above 23500. The suggested targets for this are 23700 and 23,800, with a stop loss set at 23,350.

Bank Nifty future buy above 51,600 index is expected to see upside side levels of 51900 and 60000 and level 51,250 will act as a stop loss.

Momentum Pick : Axis Bank

Buy at ₹1185 | Target price: ₹1280 | Stop loss: ₹1110.

Axis Bank Ltd, incorporated in 1994, is India’s third-largest private sector bank. It provides a wide range of financial products and services, including retail banking, corporate banking, treasury, investment banking, mortgage loans, private banking, wealth management, credit cards, and other financial services. The bank’s key products include savings accounts, current accounts, fixed deposits, recurring deposits, debit cards, credit cards, home loans, personal loans, car loans, gold loans, mutual funds, and insurance. Prominent Axis Bank brands include Axis ASAP, Axis eDGE Rewards, Axis Bank Prime, and Axis Bank Neo. Additionally, the bank offers various digital banking services such as mobile banking, internet banking, and UPI payments.

Axis Bank expanded its domestic network by adding 125 branches last quarter, totaling 5,377. Nomura maintains a Buy rating with a target price of Rs 1,250 despite top management resignations. The bank has partnered with Bajaj Allianz General Insurance to offer insurance products through over 5,250 branches, aiming to increase insurance penetration and financial inclusion.In Q4 2023-2024, Axis Bank’s revenue rose by 26.04% year-over-year to ₹37,836.10 crore and grew by 7.68% over the last quarter. Net profit surged by 241.72% year-over-year to ₹7,599.04 crore, with a 17.06% increase over the previous quarter.

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

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