Adani Enterprises tumble amid increased scrutiny by US

The Markets Today in a nutshell

Technical Overview – Nifty 50

Nifty hope of reaching an all-time high was shattered temperately during the last trading day of the week and the index closed below its 9–day exponential moving average which is placed at 18,735 levels. The benchmark index finally witnessed a breakdown of a rising wedge pattern and closed below the lower band of the pattern on the daily time frame. Moreover, the index has also formed a bearish dark cloud cover candle stick pattern on the weekly scale.

On the lower panel, the momentum oscillator RSI (14) is swiftly making an attempt to breach its horizontal trend line support which is placed at 56 levels. As the Nifty drifted lower from the higher levels we witnessed a significant increase in the CE sellers at 18,800, 18,900 & 19,000 levels.

Technically the view for the short term has turned negative as we have observed multiple bearish patterns. For bulls, 18,850-18,900 would act as immediate resistance zones, while 18,555-18,500 would act as key support zones.

Technical Overview – Bank Nifty

For the past couple of weeks, Bank Nifty has been trading within the rectangle pattern with a bandwidth of 1000 points which clearly indicates a range-bound movement for the index. The daily strength indicator RSI and MACD have both turned neutral and are sustaining near their respective reference lines.

The Bank Nifty continues to hold above its 50–day exponential moving average which is placed at 43,322 levels. From the past four trading weeks, the range for the banking index has squeezed which suggests a shape move on either side cannot be ruled out.

Bank Nifty stands at strong support in the lower band of the rectangle pattern on the daily chart. If prices fail to hold at 43,300 then it’s likely to see a breakdown of a pattern toward 43,000 – 42,800 levels, and the upper band of the index is capped at 44,100 – 44,400 levels.

Indian markets

• Domestic equity benchmarks ended with modest losses on Friday, marking the second consecutive trading session of decline.
• Global stocks also dropped due to investor concerns that central bank measures to control persistent inflation could lead to economic downturns.
• These concerns also bolstered the US dollar.
• The Nifty closed under the 18,700 mark.
• Shares in the pharma and healthcare sectors advanced.
• Conversely, shares in the metals, media, and consumer durables sectors declined.

Global Markets

• Markets in Europe and Asia declined on Friday. The Bank of England delivered a hawkish surprise Thursday, hiking by 50 basis points after both wage growth and inflation figures came in hotter than expected.
• Japans business activity expanded at a slower rate in June, according to flash estimates by the au Jibun bank. The composite purchasing managers index fell to 52.3 in June, compared to 54.3 in May. Japans inflation rate slowed in May. 
• US stocks rose on Thursday as Federal Reserve chairman Jerome Powell wrapped up his congressional testimony.
• Federal Reserve Chairman Jerome Powell faced multiple questions Thursday about where interest rates are heading, but he said the focus instead should be on how quickly the Fed is moving. Policymakers, he insisted, are still committed to using rates to bringing down inflation, but are going to move more slowly than they had been during an aggressive run of hikes going back to March 2022.

Stocks in Spotlight

• BPCL dropped nearly 4 percent on June 23, ahead of a board meeting scheduled for June 28, 2023. The meeting is set to discuss various methods for capital infusion, including a potential rights issue. The aim of this fundraising plan is to achieve energy transition, net zero, and energy security objectives, subject to necessary approvals as required by law, as stated in the company’s release.
• Voltas dropped 4 percent on June 23 following a downgrade by foreign broking firm UBS. The firm shifted its stance on Voltas to ‘neutral’ and reduced the target price from Rs 1,200 to Rs 840 per share. UBS anticipates that the industry’s challenges will continue, making it difficult for Voltas to increase its market share and improve operational profit margins (OPM).
• Adani Enterprises plummeted nearly 7 percent on June 23 following reports that the ports-to-power conglomerate is under increased scrutiny by the US Attorney’s Office and the Securities and Exchange Commission. The regulatory authorities are investigating the representations Adani made to its American investors in response to a report by short-seller Hindenburg.

Read More- Top Stocks for Equity SIP

News from the IPO world🌐

• Essen Specialty Films IPO opens on June 27
• Mukka Proteins refiles DRHP with SEBI to launch IPO
• Afcons begins IPO talks with banks.

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