As we step into a new week, investors and traders need to be aware of significant updates regarding the Indian stock markets, particularly the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). This blog post will provide a comprehensive overview of the market holiday for Eid ul-Adha and a detailed analysis of last Friday’s market performance, along with insights into future market trends.
Eid ul-Adha: Stock Market Closure
Today, June 17, 2024, the Indian stock markets (BSE and NSE) are closed in observance of Eid ul-Adha, also known as Bakri Eid. This holiday affects all trading segments, including equity, derivatives, and Security Lending and Borrowing (SLB). For those involved in commodities trading, it’s essential to note that the Multi Commodity Exchange of India Limited (MCX) will be closed for the morning session but will reopen for the evening session from 5:00 PM to 11:55 PM. Regular trading will resume on Tuesday, June 18, 2024.
This closure marks the only stock market holiday in June 2024. Looking ahead, the next holiday will be on July 17 for Muharram. In total, there are 15 stock market holidays in the calendar year 2024, including key dates such as Independence Day on August 15, Mahatma Gandhi Jayanti on October 2, Diwali on November 1, Gurunanak Jayanti on November 15, and Christmas on December 25.
Market Performance on June 14, 2024
Before the holiday closure, the Indian stock markets exhibited strong performance on Friday, June 14, 2024. The BSE Sensex climbed 181.87 points, or 0.24%, closing at 76,992.77. Simultaneously, the NSE Nifty 50 rose by 66.70 points, or 0.29%, ending the session at 23,465.60. During the day, the Nifty 50 hit a record high of 23,490.40, showcasing the market’s bullish momentum.
Broader markets also supported this upward trend, with the Nifty Midcap 100 index surging by 1.05% and the Nifty SmallCap 100 rising by 0.8%. These gains were primarily driven by strong performances in the automobile, consumer durables, and healthcare sectors. Notably, the India VIX, which measures market volatility, decreased by 4.93% to 12.82, indicating a reduction in market fears.
Sectoral Insights and Major Movers
Out of the 16 sectoral indices on the NSE, 14 closed in the green. The Nifty Auto, Nifty Consumer Durables, and Nifty Healthcare indices outperformed, rising by 1.30%, 1.20%, and 1.24%, respectively. Conversely, the Nifty IT index experienced a minor correction, declining by 0.87%.
On the BSE, major contributors to the market’s rise included heavyweight stocks like HDFC Bank, Reliance Industries, Tata Motors, and Bajaj Finance. Additionally, stocks such as Mazagon Dock Shipbuilders, SKF India, Chemplast Sanmar, J&K Paper, and Suven Pharma saw substantial gains, with Mazagon Dock Shipbuilders leading the pack with a rise of up to 14.33%.
However, not all stocks fared well. La Opala RG, KIOCL, Usha Martin, Aegis Logistics, Zensar Tech, V-Guard, Redington, and CAMS experienced declines of up to 3.47%. Despite these dips, the overall market sentiment remained positive, with 2,179 out of 3,980 traded stocks on the BSE closing with gains, 1,695 ending lower, and 106 remaining unchanged.
Market Outlook and Future Trends
Looking ahead, market analysts remain optimistic about the short-term sentiment. For the Nifty 50, support levels are identified at 23,300-23,400, with significant put writing positions indicating strong support. If the index decisively surpasses the 23,500 mark, it could potentially rally towards the 23,900-24,000 range. Traders are advised to adopt a ‘buy-on-dip’ strategy, as any fall towards the support levels may present buying opportunities.
For the Nifty Bank index, it continued its consolidation phase, struggling to surpass the 50,000 mark. A breakthrough above 50,200 is necessary to confirm an upside breakout towards the 51,000 level. Conversely, support is seen at 49,400-49,500, with a breach below these levels potentially leading to further downside towards 49,000.
Conclusion
As the Indian stock markets prepare to reopen on June 18, 2024, following the Eid ul-Adha holiday, traders and investors should stay informed about recent market trends and sectoral performances. Last Friday’s positive market activity, driven by gains in key sectors and significant stocks, sets a promising tone for the upcoming trading sessions. By keeping an eye on support and resistance levels, and leveraging stock-specific opportunities, market participants can navigate the evolving landscape with confidence and strategic insight.
Stay tuned for more updates and analyses to make the most informed decisions in the dynamic world of stock trading.
Originally posted 2024-06-17 09:43:34.
