L&T Seals DRDO Contract and Expands into Saudi Arabia, Glenmark Pharmaceuticals’ U.S. Facility Receives USFDA Warning

The Markets Today in a nutshell

Technical Overview – Nifty 50

It was an action pack weekly expiry where traders were on their toes for the entire trading session as the benchmark index indicated volatility. The index initially opened with marginal gains but was not able to hold the gains and drift below its 9 EMA and closed below 18,800 levels.

Nifty on the daily chart is trading in a rising wedge formation and currently is on the verge of a breakdown. The index manages to close above its 21 EMA which is placed at 18,752 levels. The momentum oscillator RSI (14) continues to hover near 60 levels and has maintained its bullish range shift formation intact.

Market breadth too was marginally in favor of bulls. On the options front, (29th June 2023 expiry) In Nifty 18,800 calls and puts is having the highest open interest and followed by 18,900 and 19,000 calls which suggest call writers are having the upper hand.

Currently, the benchmark index is at a make-or-break level and the immediate support for the index holds at 18,700 and 18,650 levels. Similarly, resistance is capped below the 18,850 and 18,900 levels.

Technical Overview – Bank Nifty

BANKNIFTY witnessed another lackluster trading day where prices were hovering within the narrow range and closed below 43,800 levels with a loss of 134 points. Bank Nifty on the daily chart is trading in a rectangle pattern and presently prices are trading near the pivot point of the pattern.

As of now the banking index is trading marginally above its 50-day exponential moving average and the momentum oscillator RSI (14) is hovering near 50 levels on the daily time frame. On the options front, (29th June 2023 expiry) In Bank Nifty 44,000 calls and 43,000 puts is having the highest open interest and followed by 44,500 and 45,000 calls which suggests call writers are having the upper hand.

Considering the overall technical setup, the major move in the banking index will be witnessed above 44,400 and below 43,300 levels.

Indian markets

• The frontline indices ended Thursday’s session with losses, halting a two-day winning run.
• Investors were influenced by negative global cues and worries over possible interest rate increases.
• The US Federal Reserve’s statement that inflation may take longer to subside created additional anxiety among investors.
• Trading volatility was observed due to the expiry of weekly index options on the NSE.
• The Nifty ended the day below the 18,800 level, despite hitting an early high of 18,886.60.
• The Sensex achieved a new record high of 63,601.71 before conceding gains due to profit booking.
• Sectors like oil & gas, PSU banks and realty were under pressure.
• On the other hand, metals, media, and financial services stocks witnessed an upward trend

Global Markets

• Markets in Europe and Asia declined Thursday, tracking overnight weakness in the US stocks as investors are concerned about the Feds hawkish stance on inflation and are expecting more interest rate hikes in the future.
• Federal Reserve Chairman Jerome Powell on Wednesday said he and his colleagues expect more interest rate increases ahead as inflation is still too high. Inflation pressures continue to run high, and the process of getting inflation back down to 2% has a long way to go, he said in prepared remarks for a hearing before the House Financial Services Committee. Powell noted that nearly all policymakers figure additional hikes will be needed to bring inflation closer in line to the Feds 2% target.

Stocks in Spotlight

• Tata Consultancy Services (TCS), the IT heavyweight, witnessed a slight dip of 0.57% in its stocks, despite recently broadening its collaboration with Nest, the UK’s most extensive workplace pension scheme. The augmented partnership aims to digitally transform Nest’s scheme administration services, enhancing member experiences, and bolstering the scheme’s objective of improving retirement outcomes for people across the UK.
• Larsen & Toubro (L&T), a leading engineering and construction company, saw its stock rise by 0.94% following the announcement of a significant contract with the Defence Research and Development Organisation (DRDO). Under the contract, L&T will deliver two Air Independent Propulsion (AIP) System Modules for the Kalvari Class of Submarines serving the Indian Navy.
• Glenmark Pharmaceuticals experienced a 2.39% decrease in its stock after its Monroe, North Carolina (USA) manufacturing facility received a warning letter from the U.S. Food and Drug Administration (USFDA). The warning came as a result of observations made during an FDA inspection conducted at the facility in April-May 2022, leading to heightened concerns about the company’s manufacturing practices.

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.

Day Leader Board

Sectoral Performance

Advance Decline Ratio

Numbers📈 that matter