Nifty seen opening higher, key stocks in focus
Indian equities are poised for a mildly positive open on Tuesday, with GIFT Nifty up about 46 points after the Nifty 50 closed 0.5% lower at 23,946.25 on Monday amid profit taking and geopolitical worries.
Monday’s decline, driven by selling in IT and auto shares and a rise in India VIX to 13.61, comes as traders track US Iran talks on safe navigation through the Strait of Hormuz and assess mixed global cues.
Market Overview
| Index | 29 Jun Close | Move & % Change | Comments |
|---|---|---|---|
| Nifty 50 | 23,946.25 | -109.75 pts (-0.5%) | Closed below 24,000 on profit booking and sectoral selling. |
| GIFT Nifty (NSE IX) | approx. 23,999.50 | +45.5 pts (+0.19%) | Indicates a positive start for Tuesday’s cash session. |
| India VIX | 13.61 | +4.2% | Volatility gauge rose, signalling higher risk perception. |
Note: figures are approximate; final exchange data not available at time of publication.
- Profit booking followed renewed geopolitical tensions in West Asia.
- IT and auto stocks saw selling pressure in Monday’s trade.
- Market mood described as cautiously optimistic amid global uncertainty.
- Traders watching US Iran negotiations in Qatar on Strait of Hormuz safety.
Technical Outlook
- Nifty short term trend seen constructive above 23,800 support.
- Buy on dips strategy favoured while Nifty holds above 23,800.
- Immediate resistance identified near 24,200 on the upside.
- A decisive close above 24,200 could open 24,450 24,600 zone.
- Index currently trading between 20 day and 100 day EMAs, signalling no clear bias.
Key Market Statistics
| Statistic | Value/Change | Context |
|---|---|---|
| India VIX | 13.61, up 4.2% | Higher volatility after geopolitical flare up and profit taking. |
| Rupee (USDINR) | 94.51, down 6 paise | Local unit weakened as risk appetite softened on Monday. |
| F&O ban list | Nil | No securities crossed 95% of market wide position limit. |
- India VIX rise suggests traders are hedging against near term swings.
- Rupee pared early gains to close weaker against the dollar.
Global Cues
| Market/Asset | Movement | Notes |
|---|---|---|
| Dow Jones Industrial Average | Higher, record close | US equities gained as US Iran hostilities eased. |
| US tech shares | Higher | Rebounded after recent selling, supporting Wall Street indices. |
| Japan Topix | +0.5% | Asian equities firm, led by technology stocks. |
| Australia S&P/ASX 200 | Little changed | Regional performance mixed in early trade. |
| Euro Stoxx 50 futures | +0.1% | Slightly positive signal for European open. |
| Hang Seng futures | Little changed | Limited direction from Hong Kong futures. |
| Brent crude oil | Lower | Prices fell as markets eye US Iran talks in Doha. |
| Gold | Over -1% | Set for fourth straight monthly decline on rate hike expectations. |
| Japanese yen | At 1986 lows vs USD | Weakness raises risk of Tokyo intervention. |
Note: figures are approximate; final market data not available at time of publication.
- Asian benchmark on track for best quarterly gain in 17 years.
- Safe haven gold under pressure as focus shifts to US rates.
- Yen weakness contrasts with softer dollar ahead of US jobs data.
Stocks To Watch
Top Gainers
| Stock | Sector | Notable Factor |
|---|---|---|
| SIS | Security services | Board approved in principle share buyback up to ₹120 crore. |
| Bajaj Auto | Auto two wheelers | Share buyback tender opens 1 July, closes 7 July. |
| Zee Entertainment Enterprises | Media | Government cleared ₹418 crore foreign investment from OFI Global China Fund. |
- SIS buyback price capped at ₹478.50 per share, about 10% above prior close.
- SIS could repurchase around 25 lakh shares at maximum size.
- Bajaj Auto shareholder approval obtained via postal ballot on 18 June.
- Bajaj Auto buyback public announcement issued on 19 June.
- ZEE approval disclosed by Department for Promotion of Industry and Internal Trade.
Top Losers
| Stock | Sector | Notable Factor |
|---|---|---|
| HDFC Bank | Banking | Appointed Rajiv Kumar as part time chairman for four years. |
| Hindustan Unilever (HUL) | FMCG | Named Koteshwar L.N. CEO of wellness nutrition unit Oziva. |
| Tata Motors Commercial Vehicles | Auto CV | Sees path to 1 million annual sales post proposed Iveco acquisition. |
| Bharat Petroleum (BPCL) | Oil & gas | To buy 40% in Tiki Tar and Shell India for ₹85 crore. |
- HDFC Bank said RBI has approved Rajiv Kumar’s appointment from 30 June.
- HUL move comes amid double digit growth in wellness nutrition category.
- Tata Motors CV cited infrastructure spending and freight growth as structural drivers.
- BPCL deal marks entry into value added bitumen market tied to road building.
Corporate Commentary
- “We see a path to crossing 1 million annual vehicle sales after completion of the proposed Iveco Group acquisition.” Tata Motors Commercial Vehicles.
- BPCL said the Tiki Tar stake buy aims to tap India’s infrastructure and road construction boom.
FAQ
Q: What is the key support and resistance for Nifty today?
- Analysts highlight 23,800 as crucial support and 24,200 as immediate resistance for Nifty.
Q: Which stocks are in focus due to corporate actions?
- Bajaj Auto, SIS, ZEE, HDFC Bank, HUL, Tata Motors CV and BPCL are in focus on buybacks, investments and appointments.
Q: Are any stocks under F&O ban today?
- No securities are in the F&O ban segment, as none breached 95% of market wide position limits.
Frequently Asked Questions
What is the trade setup for Nifty today?
GIFT Nifty indicates a mildly positive open, with Nifty support at 23,800 and resistance near 24,200, while volatility is elevated as India VIX stands at 13.61.
Which corporate actions could move stocks in today’s session?
Key actions include SIS and Bajaj Auto share buybacks, ZEE’s approved foreign investment, HDFC Bank’s new chairman, HUL’s Oziva CEO appointment, Tata Motors CV’s Iveco plan and BPCL’s Tiki Tar stake purchase.
How are global markets positioned ahead of Indian trade?
US equities closed higher with the Dow at a record, Asian markets are firm led by tech, while crude oil and gold are weaker and the yen trades near multi decade lows against the dollar.
Disclaimer
The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Lemonn (Formerly known as NU Investors Technologies Pvt. Ltd) do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
