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Below Quote Daily Market Analysis 24 June 2023 By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

Markets failed to build on the last week's up move and settled with a cut of nearly a percent. Initially, the tone was positive but profit taking in the US markets not only capped the upside but also triggered a decline in the final sessions. Amid all, the Sensex managed to make a new record high but eventually closed in the red at 63,238.89 levels and the Nifty too settled lower at 18,665.50 levels. All sectors, barring financials, witnessed profit taking wherein metal, realty and FMCG were among the top losers. After weeks of outperformance, the broader indices too felt the heat in the final sessions and shed nearly a percent each.

We expect volatility to remain high due to the scheduled expiry of June month derivatives contracts next week. As we are closely eyeing the US markets for cues, the recent dip has certainly turned the mood cautious but sustainability above 33,500 in Dow Jones Industrial Average (DJIA) would keep the recovery hopes alive. Besides, the performance of their broader indices will also be in focus, after the bout of profit taking.

We are now at a critical juncture and eyeing 18,600 in Nifty as a make-or-break level. A decisive close below that level would further deteriorate the mood and Nifty may find the support around 18,350-18,450 zone. Besides, after spending six weeks in a narrow band, the banking index could also see a strong directional move so it is prudent to focus more on risk management and wait for clarity. Traders should keep a check on position size and stay stock-specific as we may see mixed trends within the sector. 

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