The Nifty 50 is one defiant index as it has continued to surpass one resistance barrier after another in a move towards its highest level since December 1 last year. On Wednesday, it broke past the key 18,600 resistance mark and closed above the 18,700 levels. Wednesday was also the biggest single-day gain for the index since May 26 and it has now gained in eight out of the last 10 trading sessions.

Share Market Live

NSE

With Wednesday's move, the overall market capitalisation of India's equity market crossed the $3.5 trillion mark for the first time in six months. The Nifty 50 has now added 1,900 points within three months of its March 20 low of 16,828.

Today is a news-heavy day and multiple factors will determine whether the Nifty 50 is able to surge the remaining 160 points left for its all-time high today itself, or it will have to wait a while longer. Today will not only be the weekly options expiry of the Nifty 50 and the Nifty Bank contracts, but also the Reserve Bank of India's interest rate decision as the Monetary Policy Committee's three-day meeting ends. Consensus on the street is that the central bank is likely to maintain status quo. You can read more here.

InCred Equities' Gaurav Bissa observed that the Nifty 50 made new highs every hour on Wednesday, even as the Nifty Bank continued to struggle. "The fresh hourly breakout above the 18,650 levels has now paved the way for the index to move towards 18,800 - 18,850," he said. Immediate support for the index on the downside lies at 18,630.

The Nifty Bank index underperformed on Wednesday but managed a fourth day of gains and also closed at the highest level since May 30. The underperformance came from ICICI Bank and Kotak Bank, which kept the gains in check. The index has also gained in eight out of the last 10 trading sessions. The Nifty Bank has now gained over 5,500 points from its March 16 low of 38,613.

Even though the Nifty Bank is currently in a sideways consolidation mode, the underlying trend of the index is bullish, said Rupak De of LKP Securities. The range remains the same with downside support at 44,000 and upside resistance at 44,500. De believes that the index may have a clearer direction post today's RBI policy.

InCred's Bissa also said that the Nifty Bank has closed above its previous swing breakout of 44,200 despite the sluggishness, and if that is sustained, it can take the index higher towards levels of 45,000. Immediate downside support for the index is now at 43,900.

After declining in three out of the last four trading sessions, the Nifty FMCG index had its best single-day performance since May 26. The index closed at a record high on Wednesday and three of the top five gainers on the Nifty 50 were FMCG stocks - Britannia, Nestle India and Tata Consumer Products.

"If you look at the long term, I believe that ITC has a potential to significantly outperform others, primarily on the back of the fact that some corporate action in ITC in the long term or in the medium term is inevitable. As and when that action happens, sum of parts valuation will be significantly higher than what we see today,” Sudip Bandopadhyay of Inditrade Capital told CNBC-TV18 on June 2.

What Are The F&O Cues Indicating?

Nifty 50's June futures added 8.3 percent or 7.31 lakh shares in Open Interest on Wednesday. Premium on the futures is now at 72 points from 73.95 points earlier. On the other hand, the Nifty Bank futures added 1.4 percent or 32,000 shares in Open Interest. Nifty 50's put-call ratio is now at 1.38 from 1 on Tuesday.

Indiabulls Housing Finance, India Cements, and Manappuram Finance continue to remain in the F&O ban.

Nifty 50 on Call side for today's expiry:

For today's expiry, the 18,500 and 18,600 call strikes of the Nifty 50 have seen shedding in Open Interest, while that of 18,850 and 18,900 have seen addition.

Nifty 50 on Put side for today's expiry:

On the put side though, strikes have only seen addition in Open Interest. Strikes between 18,550 and 18,700 saw Open Interest addition on Wednesday.

Let us take a look at the stocks that added fresh long positions on Wednesday, which means an increase in price as well as Open Interest:

Let us now take a look at the stocks that added fresh short positions on Wednesday, which means a decrease in price but an increase in Open Interest:

Here are the stocks that are likely to be in focus ahead of today's session:

Rate Sensitives: Auto, Real Estate and Banking names will be in focus ahead of the RBI interest rate decision.

Tata Motors: Aspires to be at the forefront of the global battery manufacturing industry, the company said during its investor meet on Wednesday. Nomura says levers in place for market share gain.

HPCL / BPCL / IOC: Fuel refiners will be in focus as sources tell CNBC-TV18 that they may consider a fuel price cut as their financial health improves. You can read more about this here.

Hero Moto Corp: CEO Niranjan Gupta tells CNBC-TV18 that the company would like to win in the premium segment and also build leadership in the EV business. More on the interview in this story.

Titagarh Rail: Board meeting on June 10 to consider fund raising via QIP, rights issue.

Mazagon Dock: Signs non-binding, non-financial MoU with Thyssenkrupp Marine Systems for submarine project P 75-I

What are Global Cues Indicating?

Asian equities have opened lower as the Wall Street rally paused overnight in mid-week trading. The Nikkei 225 is fluctuating between gains and losses, while the Topix is down 0.2 percent.

It was a mixed session overnight for Wall Street as the high-flying S&P 500 and the Nasdaq ended 0.4 percent and 1.3 percent lower, while the Dow Jones finished the session with gains of 0.3 percent.

The Singapore (SGX) Nifty futures, an early indicator of how trading will begin in India, are currently flat at 18,824.5.

Both foreign and domestic investors have been buyers in the cash market during Wednesday's trading session.

"Traders will be watchful of the RBI policy outcome on Thursday and the market's reaction to the same will be important," said Ruchit Jain of 5paisa.com. 18,600 will be a crucial support on expiry day, he said.

Nifty 50 closing above the 18,700 mark is indicative that the bulls are in complete control, said Ashwin Ramani of SAMCO Securities. The support has now shifted higher from 18,500 to 18,600 and that the all-time high of 18,887.6 will act as a resistance for now, he said.

First Published:Jun 8, 2023 5:48 AM IST