Market Prediction (Nifty and Banknifty for Monday 12 June 2023): The stock market in India continued its downfall for two straight sessions. Indian benchmarks Nifty 50 and BSE Sensex declined by 71.15 (-0.38 pc) and 223.01 (0.35 pc) points, respectively on Friday. Despite flat to positive global cues, benchmarks couldn’t recover and ended the week on the lower end of the range.
Local and global factors couldn’t prevent the Indian market from falling. After the RBI governor’s cautious approach to inflation, buyers were restricted from fresh buying because on Monday India’s inflation number will be out.
Except for Nifty private bank and realty, all other sectoral indices on the NSE ended the day negatively on Friday. PSU banks, IT, and FMCG were the biggest losers on the NSE, with PSU banks falling 1.21 percent. Except for a few individual counters, most indices spent the day dull and uninteresting. Resilience in the private banks prevented the market from an ugly weekly closing. But the majority of large stocks struggled to sustain the higher levels on Friday.
Nifty and Bank Nifty Prediction for Monday 12 June 2023
Market Prediction for Nifty (12th June 2023)
Based on the recent price movements, Nifty has shown a bearish signal with two consecutive days of decline. It implies that the upward trend is about to turn. However, the basic structure of the Nifty is still positive.
As per the hourly chart, the level of 18600 is now important for the bulls. So, if Nifty breaks this level, it could indicate a potential upside momentum. For traders with existing short positions, it may be advisable to maintain a stop loss at or above 18600 tomorrow. The possible downside targets for tomorrow are 18500, 18460, and 18410.
If the Nifty breaks and sustains above 18600, the structure will become positive for tomorrow. So, it can drive the index higher toward levels of 18660-18800. For buyers of Nifty, the stop-loss could be set at 18520. However, for those who can take a bigger risk, the stop loss will be between 18500 and 18480. The upside targets in this scenario would be 18660, 18720, and 18770.
Nifty Support and Resistance Levels:
- Pivot: 18598.48
- Resistance 1: 18641.57
- Resistance 2: 18719.73
- Resistance 3: 18762.82
- Support 1: 18520.32
- Support 2: 18477.23
- Support 3: 18399.07
Market Prediction for Bank Nifty (12th June 2023)
The Bank Nifty also displayed a bearish signal on the daily chart with a red candle that continued for the second day. Currently, it is indicating a bearish signal which is stuck in a tight range, though. Therefore, traders who already have short positions may consider holding them. For them, the stop loss level will be at 44,130-44160 for the downside targets 43,850, 43,730, and 43,580.
For traders holding long positions in the Bank Nifty, the optimum stop loss will be 43,910, and the potential upside range could be between 44,160 and 44,500.
If the Bank Nifty breaks and sustains above 44,100, it would indicate a bullish structure for tomorrow. So, in such a scenario, the target levels to watch for are 44,120, 44,350, and 44,470, with a stop loss placed around 44000.
Bank Nifty Support and Resistance Levels:
- Pivot: 44047.23
- Resistance 1: 44161.87
- Resistance 2: 44334.73
- Resistance 3: 44449.37
- Support 1: 43874.37
- Support 2: 43759.73
- Support 3: 43586.87
Conclusion
With U.S. stocks closing higher, Indian benchmarks are set to open higher on Monday. Now the only concern will be whether there will be follow-up buying or profit booking after the gap-up opening. So, jumping to the fresh trades after the morning gap-up will be a risky bet either on the long or short sides.
As we saw the divergence between Nifty and Bank Nifty on Friday, it’ll be interesting to watch which will be the key driver of the market. According to the SGX Nifty Live, Nifty will open higher by 52 points on Monday. Though the opening of Asian peers and U.S. futures in the morning will present a clearer view.
Please note that all levels of Nifty and Bank Nifty discussed above, are spot prices.
Chart Credit: Chartink
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