Trade Setup On June 27: F&O Expiry, Budget, FIIs, Global Trends Are Key Factors To Markets Tone; Stocks To Buy

Indian stock market is likely to witness flat to bearish opening on June 27, 2024, as Gift Nifty records see-saw like movement in the early trade. However, experts think otherwise. Also, stock market will trade amidst June futures & options (F&O) expiry. One of them believes that optimism surrounding the Union Budget, increasing FII inflows, and robust economic data is likely to keep bulls on Sensex and Nifty.

After opening lower to 23,799 and hitting intraday low of 23,785, Gift Nifty is trading marginally up to its intraday high of 23,806. There is a lack of bullish boost in the index.

While weak global cues will also play a role in influencing the sentiment of market. Asian stocks tumbled sharply after US tech stocks dragged Wall Street due to Micron Technology Inc's guidance was below street estimates for the sector. However, Japanese Yen recovered on Thursday after nosediving to almost 160.9 levels against US dollar, which would be the lowest since 1986.

On Wednesday, the Sensex and Nifty 50 indices both reached fresh intraday highs, buoyed by strong performances from Reliance Industries Limited (RIL) and select banking stocks. Investors watched with bated breath as the Nifty 50 surged to an all-time high of 23,890 points, and the Sensex climbed to a record high of 78,759 points. The Nifty Bank also soared, hitting a peak of 52,988 points.

Talking about the previous day's performance, Vinod Nair, Head of Research, Geojit Financial Services said, "The domestic market hit a new peak, bolstered by a rally in large-cap stocks, where the valuation is relatively fair. In contrast, mid- and small-cap stocks saw profit-taking due to valuation concerns. Currently, the financials & consumption stocks are catching-up driven by improved balance sheets, a strong GDP growth forecast, and softening inflation. Global market sentiments reflected similar trends, with a consensus on imminent rate cuts."

Trade Guide On June 27:

Siddhartha Khemka, Senior Group VP, Head - Research, Broking & Distribution, Motilal Oswal Financial Services said, "Overall optimism surrounding the Union Budget, increasing FII inflows, and robust domestic economic data contributed towards the positive movement in the market. We expect the ongoing uptrend to continue further."

Also, Prashanth Tapse, Senior VP (Research), Mehta Equities said, "Investors are mounting lots of bullish bets ahead of the next month's Budget, which once again triggered a major rally and lifted both benchmark indices to fresh all-time highs. Market participants are hoping for a reform-oriented budget from the government that would translate into buying action in stocks supportive of long-term economic growth."

Shiju Koothupalakkal - Technical Analyst at Prabhudas Lilladher expects Nifty to find support at 23700 and resistance is seen at 24,000 on June 27. While Bank Nifty is expected to find support and resistance around 52,500 and 53,400 respectively.

Koothupalakkal has recommended BUYING on 3 stocks on Thursday. They are:

- BUY HUDCO cmp 285.20 Stop Loss 279 Target 300

- BUY NCC cmp 329 Stop Loss 323 Target 345