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Nifty

* Nifty edged higher in June amid excessive volatility and made a new record high as well, supported by firm global trends, buying from the FII desk and rotational buying in index heavy weights. It gained ~1480 odd points i.e. 6.57% to finally close at 24,010.60 levels.

* On the sectoral front, almost all the sectors participated in the move on rotational basis where IT and Realty outperformed the markets and Metals and Energy remained on the back foot.

* We expect the ongoing momentum to continue in the near term and Nifty to claim 24,600 mark soon. A new base is now created for the index which is at 23700 first and then 23300 mark. One should utilize dips towards support to create longs and not chase the market at higher level.

Bank Nifty

* The banking index started the month on a volatile note on the back of election results. However, post the sharp decline, index recovered smartly from the lows to close the June month at record high levels, gaining nearly 7 percent at 52342.

* The PSU Banking index took a breather and remained sideways for yet another month to close marginally lower. While the private banking index was the highlight of the month, which closed higher by over seven and half percent.

* The banking index recorded a breakout from the two months of consolidation, which hints at a bullish bias. We thus continue to maintain a "buy on dips" approach in the index and suggest traders to focus on the private banking names over PSU banking stocks, especially the stocks which are showing higher relative strength.

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