Market Prediction(Nifty and Bank Nifty for Monday, 19th June 2023): The Indian equity market ended the day at record highs on Friday amid strong global and domestic cues. Nifty and Bank Nifty closed at 18,826.00 and 43,938.15, respectively, where Nifty made a record on a closing basis.
Finally, the Nifty closed above 18000 after a gap of six months. The goal of reaching beyond 18000 was finally achieved after several attempts in the last few weeks.
Nifty increased 137.90 points, or 0.74 percent, while Bank Nifty surged 1.14 percent, with a gain of 494.55 points. As compared to Nifty, the move of Bank Nifty was quite dramatic in the second half. A sudden spike in the Bank Nifty helped Indian benchmarks close at record highs.
The broader market also performed well, where the Nifty mid and small-cap indexes spiked over 0.5 percent on Friday.
Nifty and Bank Nifty Prediction for Monday 19th June 2023
Market Prediction for Nifty (19th June 2023)
Nifty finally closed above the key resistance area of 18800 after several attempts. Though the price action of the Nifty was quite strong this week, Bank Nifty dragged the index from the highs. Currently, the price of Nifty at 18,887.6 appears to be a significant hurdle for further upward momentum, which was Nifty’s all-time high. In order for Nifty to resume its upward trend for a fresh high, it must break and sustain above this level. As long as it remains below 18,887.6, the Nifty is expected to remain range-bound to volatile.
The hourly and daily patterns of the Nifty are currently quite similar. But on a daily basis, it has to break the previous high, which was already achieved in the hourly chart. Friday’s candlestick was bigger in size and overshadowed this week’s candles, indicating a strong bullish trend. Traders who have short positions may consider setting a stop loss at or above 18,887.6 or 18,900. The potential downside targets for Monday are 18,780, 18,730, and 18,690.
As long as the Nifty trades and sustains above 17800, the market structure will remain strong and bullish for Monday. This could drive the index higher towards levels of 18,900-18,950. For buyers of the Nifty, the stop loss could be set at 18,780. However, for those willing to take a higher risk, the stop loss level would be 18,730. In this scenario, the upside targets would be 18,900, 18,950, and 19,000.
Nifty Support and Resistance Levels:
- Pivot: 18800.40
- Resistance 1: 18890.30
- Resistance 2: 18954.60
- Resistance 3: 19044.50
- Support 1: 18736.10
- Support 2: 18646.20
- Support 3: 18581.90
Market Prediction for Bank Nifty (19th June 2023)
Compared to the Nifty, the Bank Nifty is showing more weakness and signs of exhaustion in its upward movement despite today’s move. The price action indicates a potential pullback, as there have been multiple rejections at higher levels around 44,050-44,100. Despite several attempts, Bank Nifty has been unable to sustain a breakout above 44,100 on a closing basis. However, it has managed to hold above the support level of 43,800.
On Monday, buyers can continue to hold their positions, setting a stop loss below 43,800 based on their risk tolerance. Those with existing short positions can also hold their positions with a stop loss above 44,050 or 44,100, depending on their entry points.
The upside targets for the Bank Nifty are 44,150, 44,270, and 44,350. On the downside, the targets for Monday are 43,780, 43,670, and 43,500.
Bank Nifty Support and Resistance Levels:
- Pivot: 43852.78
- Resistance 1: 44168.62
- Resistance 2: 44399.08
- Resistance 3: 44714.92
- Support 1: 43622.32
- Support 2: 43306.48
- Support 3: 43076.02
Conclusion
The buying activities may continue on Monday as well, following a record close in the leading indices for the Indian stock market. With the support of positive global markets and strong domestic reasons, Nifty could try to set a new record high. Investors should maintain their holdings until and unless a new unexpected trigger hits the market.
But when the market is at or near all-time highs, investors and traders, especially traders, need to be a little cautious when initiating new long positions. Therefore, while riding the rally, one must pay attention to proper position sizing and stop losses. The strategy for Monday should be to book existing long positions at record highs or to buy on dips.
Due to National Freedom Day, the U.S. market will be closed on Monday, therefore the Indian market will likely only be influenced by events in Asia and Europe. However, the Indian equity market will go in its own direction as a result of strong local factors.
Please note that all levels of Nifty and Bank Nifty discussed above, are spot prices.
Chart Credit: Chartink
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