Nifty Eyes a Bullish Expiry on June 24: Can Banks and IT Stocks Lead the Charge?

June 24, 2023 – The Indian stock market is gearing up for a crucial expiry day on June 24th. With Nifty 50 showing signs of strength, traders are hoping for a positive close. But will the banking and IT sectors, key drivers of the index, provide the necessary support?

Nifty’s Positive Momentum

The Nifty 50 has been displaying bullish momentum in recent weeks, pushing towards crucial resistance levels. The index has comfortably crossed the 18,700 mark and is eyeing further gains.

Factors Supporting a Bullish Expiry:

Strong Global Cues: Positive global market sentiment driven by strong economic data and easing inflation concerns.
Robust Corporate Earnings: Positive earnings announcements from several Indian companies have boosted investor confidence.
Favorable Macroeconomic Indicators: India’s resilient economic growth and improving inflation figures have instilled optimism.

Banks and IT: Key Sectors to Watch

The performance of the banking and IT sectors will be crucial for Nifty’s direction on expiry day.

Banking Sector Outlook:

Strong Earnings: Private and public sector banks have reported strong earnings, indicating healthy credit growth and robust performance.
Rate Hike Concerns: Rising interest rates pose a potential headwind for banks, as it could impact loan demand and profitability.

IT Sector Outlook:

Easing Global Headwinds: Signs of a slowdown in the US economy and potential for tech layoffs have cast some doubts on the sector’s prospects.
Strong Domestic Demand: Rising digital adoption and infrastructure development in India continue to support IT sector growth.

Trade Setup for June 24th:

Buy on Dips: Traders could consider buying Nifty 50 futures or index stocks on dips, with the target set at 19,000 levels.
Banking and IT Stock Selection: Focus on strong performers within the banking and IT sectors, analyzing their fundamentals and recent earnings reports.
Manage Risk: Always exercise proper risk management techniques by using stop-loss orders and diversifying your portfolio.

Key Levels to Watch:

Support: 18,600
Resistance: 19,000

Disclaimer: This is not financial advice. Investing in the stock market involves inherent risks, and it is crucial to conduct thorough research and consult with a financial advisor before making any investment decisions.

Keywords: Nifty, Expiry Day, Banking Sector, IT Sector, Trade Setup, Bullish, Support, Resistance, Global Cues, Earnings, Macroeconomic Indicators, Risk Management.