Nifty Looks to End Expiry on a High: Will Banks and IT Lend Support? – Trade Setup for June 24

The Nifty 50 is poised for a thrilling end to the June expiry week, with investors watching closely for potential support from key sectors like banking and IT. Will the index close on a high, or will volatility reign supreme? Let’s analyze the key factors and potential trade setups for June 24th.

Market Outlook:

The Nifty 50 has displayed a positive bias in recent sessions, fueled by positive global cues and strong domestic economic data. However, the upcoming expiry on June 24th could introduce volatility as traders unwind positions. The banking and IT sectors, which have been major contributors to the recent rally, will be closely watched for their performance.

Key Factors to Watch:

Global Market Sentiment: Global markets are exhibiting mixed signals. Keep an eye on the performance of major indices like the US S&P 500 and the Nasdaq 100.
Rupee Movement: The rupee’s performance against the dollar will also influence market sentiment. A stronger rupee could support the Nifty, while a weakening rupee may dampen investor enthusiasm.
Domestic Economic Data: Keep an eye on key domestic economic indicators like the Manufacturing PMI and Inflation data, which could provide insights into the health of the Indian economy.
Bank and IT Sector Performance: The performance of these key sectors will be crucial in determining the direction of the Nifty. Positive news flow and strong earnings from these sectors could boost the index.

Potential Trade Setups:

Buy on Dips: If the Nifty 50 experiences a dip during the day, consider buying near support levels.
Sell on Rally: If the index rallies sharply, consider selling at resistance levels, especially if it approaches all-time highs.
Sector Rotation: Pay attention to sector-specific opportunities. If IT stocks continue to perform well, consider buying into this sector. Similarly, if the banking sector shows weakness, consider shorting positions.

Key Support and Resistance Levels:

Support: 18,400, 18,300
Resistance: 18,700, 18,800

Remember:

Risk Management: Always use appropriate stop-loss orders to limit potential losses.
Market Volatility: The market can be unpredictable. Be prepared for volatility and adjust your strategy accordingly.
Consult a Financial Advisor: This information should not be considered financial advice. Always consult with a qualified financial advisor before making any investment decisions.

Conclusion:

The Nifty 50 is set for an exciting expiry week. While the index has shown strength, volatility could emerge during the day. Carefully analyze the factors outlined above and adjust your trading strategy accordingly. Remember to prioritize risk management and seek professional advice when needed.

Keywords:

Nifty 50
Expiry Week
Trade Setup
Banking Sector
IT Sector
Support and Resistance
Risk Management
Financial Advice
Market Volatility
June 24th

Note: This article is for informational purposes only and should not be considered financial advice. Always consult with a qualified financial advisor before making any investment decisions.