Quote on Pre market comment for Tue 23rd June by Aakash Shah, Research Analyst, Choice Broking Ltd
Below the Quote on Pre market comment for Tue 23rd June by Aakash Shah, Research Analyst, Choice Broking Ltd
Indian equity markets are expected to open on a mildly positive note, with Gift Nifty trading at 24,144, up by 44 points. Asian markets traded mixed in early deals after a similar session on Wall Street, as investors continued to monitor developments in the ongoing US-Iran negotiations. Despite subdued global cues, the domestic market is likely to draw support from its resilient technical structure and improving risk sentiment.
In the previous session, the Nifty 50 rebounded after a day of correction and gained nearly 0.4 percent. The index continued to trade above its short- and medium-term moving averages, all of which remain in a rising trajectory. While the benchmark index is witnessing consolidation near higher levels, the overall trend remains constructive with momentum indicators maintaining a positive bias.
From a technical standpoint, the Nifty 50 formed a Doji candlestick pattern on the daily chart, indicating indecision between bulls and bears after the recent rally. However, the index sustained above the 23.6 percent Fibonacci retracement level of the April rally and remained firmly above key moving averages. The 10-day EMA has crossed above the 50-day EMA, strengthening the bullish setup. The RSI improved to 59.65 and maintained its bullish crossover, while the MACD continued to remain above both the signal line and the zero line. Although the green histogram bars have started fading, the broader momentum remains positive. Immediate support is placed at 24,000, followed by the crucial support zone of 23,800. On the upside, the index may target the 24,150–24,200 zone initially, while a breakout above this range could pave the way for a move towards 24,300=24,500.
Derivatives data reflects a stable undertone. The Put Call Ratio (PCR) increased to 0.97 from 0.91 in the previous session, indicating improving sentiment among market participants. The gradual rise in PCR suggests that traders continue to build positions on the put side, reinforcing support at lower levels.
India VIX declined by 0.98 percent to 12.84 and remained near the lower end of its recent range, signalling continued comfort for bulls. The subdued volatility environment is supportive of the prevailing uptrend, and any further decline in the volatility index could strengthen market confidence.
In terms of price structure, Nifty continues to maintain a higher high-higher low formation on the short-term charts. The recent Doji formation near resistance levels indicates consolidation rather than weakness. As long as the index sustains above the 24,000 mark, the broader bullish structure is likely to remain intact.
Bank Nifty also gained around 0.4 percent and formed a Doji-like candle on the daily timeframe, reflecting consolidation after a strong rally. The banking index continues to trade above all key moving averages and remains comfortably above the bullish gap formed on June 15. The 20-day EMA is on the verge of crossing above the 100-day EMA, further strengthening the medium-term outlook. Momentum indicators remain supportive, with the RSI rising to 69.14 and the MACD maintaining a bullish crossover. Immediate support is placed around 57,464-57,076, while resistance is seen near 58,000-58,500.
Overall, the technical setup remains positive despite ongoing consolidation near higher levels. The broader trend continues to favour the bulls, with 24,000 acting as an important support level. The immediate trading range for Nifty is expected between 24,000 and 24,300, while a decisive breakout above 24,200-24,300 could accelerate the next leg of the uptrend towards 24,500.
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