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Nifty 50 today: Range-bound, volatile session ahead, say analysts

01:35, 30 June 2022

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On Wednesday, the Nifty 50 ended down 0.32% at 15,799.10 – Photo: Shutterstock

The NSE Nifty 50 index (India 50) will likely continue to be choppy on Thursday, with a range-bound bias, as global cues including the US economy play a key role, analysts tell Capital.com.

On Thursday, data from the US recorded a contraction of the economy amid a record trade deficit, while domestic demand remained strong. The country’s GDP fell at a 1.6% annualised rate in the last quarter, the government reported.

Tata Motors share price and oil companies will be in focus on Thursday.

Nifty 50 (India 50) price chart

“The short-term trend of Nifty continues to be choppy with negative bias,” Nagaraj Shetti, technical research analyst at HDFC Securities said. “The present range-bound movement could continue for the next one to two sessions and immediate supports to be watched around 15600-15650 levels. On the flip side, a decisive move above 15,850-15,900 levels is likely to open a sustainable upside for the market.

“After the false upside breakout of 15,800-15,900 levels on Monday, Nifty has declined gradually in the last two sessions, which could be a positive indication for the bulls to make a comeback from the lows. Normally, such range movements from near important resistances eventually result in sharp upside bounces from the lows,” Shetti added.

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Volatility ahead

Ajit Mishra, Vice President (Research) at Religare Broking, said that markets will react to the US GDP data in early trades and then the focus would shift to the monthly derivatives expiry. “While the Nifty has been hovering around its crucial hurdle of 15,900, the recent decline in the banking index is pointing towards more pain ahead. Participants should maintain caution and focus more on overnight risk management,” he said.

Prashanth Tapse, Vice President (Research) at Mehta Equities, said pointed to a possible warning sign. “Nifty’s biggest support is placed at 15,367 – and on further decline, expect a waterfall of selling,” he said. “Nifty’s major hurdle is seen at 15,927 and then all eyes will be on the 16,157 mark.

Volatility is likely to be a hallmark of Thursday’s trade as traders will roll out June F&O contracts to July series. Investors will also react to a speech from the Federal Reserve Chair Jerome Powell and the US GDP first-quarter report to trickle in later today.”

US Crude Oil Spot price

Nifty 50 stocks in focus today

Oil companies

Oil marketing and exploration companies will be in focus after India’s Union Cabinet approved a proposal that will allow upstream oil companies to sell crude oil to any company in the domestic market. The move will boost the exploration and production sector, the information and broadcasting minister said on 29 June, according to a report.

Tata Motors

Tata Motors (TTM) joined hands with Japanese chipmaker Renesas Electronics Corp to produce semiconductor solutions. The Japanese company will also collaborate with Tejas Networks, a networking solutions subsidiary of the Tata Group, to provide wireless solutions including 5G, according to a report.

Tata Motors (TTM) share price

Nifty on Wednesday

On Wednesday, Nifty ended down 0.32% at 15,799.10, with volumes on the NSE being the highest since 17 June. Among the sectors, power and oil & gas indices rose the most while banks, information technology and fast-moving consumer goods indices fell the most.

“Nifty ended in the negative on 29 June after two days of gains as the late morning rally after a gap down open fizzled out towards the end of the session,” said Deepak Jasani, head of retail research at HDFC Securities. “Nifty has shown signs of rising from the opening low levels over the past few sessions. However, it is not able to build on the gains in the session. Nifty could remain in the 15,638-15,927 band over the next few sessions.”

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