In the derivatives segment, FIIs index long-short ratio topped the 1:2 ratio, meaning presence of 2 open call positions for every single put position. The FIIs net index longs rose to 66.94 per cent, while shorts fell to 33.06 per cent.

FIIs net bought index futures for the 13th straight trading session on Wednesday. FIIs added 43,162 net longs in index futures for an investment of Rs 2,885.84 crore. FIIs aggressively bought into Nifty and Bank futures – a total of 28,419 and 15,241 contracts, respectively, yesterday.

On the other hand, DIIs (Domestic Institutional Investors) covered some of their index short positions, while retail investors added to the shorts. Retail index net short stood at 59.26 per cent at the end of Wednesday’s trading session.

Global mood

Overnight in the US, equity market ended with marginal gains. NASDAQ advanced 0.5 per cent. The S&P 500 and Dow Jones added up to 0.2 per cent higher amid mixed trend in index heavyweights. Tonight the focus will be on the weekly initial jobless claim numbers.

Further, the US stock futures were down up to 0.5 per cent in post market trades.

The US 10-year yield rose to 4.34 per cent. Among commodities, Gold futures slid to $2,310 per ounce, while Brent Crude Oil slipped a wee bit to $84 per barrel.

Markets, in the Asia-Pacific region, traded in a sea of red this morning. The Australian equity benchmarks – the S&P ASX 200 and All Ordinaries dropped over 1 per cent each. Japan’s Nikkei too declined over 1 per cent, while Kospi and Taiwan shed around 0.8 per cent each.

Trading strategy for Thursday, June 27 – Should you be a buyer or seller in Indian stock market today? Here’s what experts recommend:

Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities

All Strikes from 23,500 until 23,750, saw call writers (Bears) exiting and put writing, which led the steady up move in the Nifty on Wednesday. The Nifty has given consecutive higher close on the daily chart signaling strong bullish momentum.

The call writers, the Bears, with 5.31 lakh contracts lead convincingly over the put writers, the Bulls, who have exposure of 91,000 contracts at the 24,000 Strike and the option activity at this strike will provide cues about Nifty’s future direction.

On the Bank Nifty, strong put writing was observed at the 52,800 & 52,900 Strikes. The call writers lead the put writers at the 53,000 Strike and if call writers exit from this strike, then Bank Nifty is likely to rise even further.

Om Mehra, Technical Analyst, SAMCO Securities

The Nifty has sustained above -three inside-up candle patterns, highlight the bullish momentum. The 10-DMA is positioned at 23,550, with Nifty trading significantly above this level. The RSI is settled at 66, indicating bullish momentum.

The hourly chart shows strong traction, with the previous swing high of 23,667 now serving as support. Any correction towards the 23,750 zone would present a potential buying opportunity before the index begins its journey towards 23,980 – 24,030 levels.

The Bank Nifty closed above a rising trendline connecting previous tops, indicating continued bullish momentum. Additionally, Bank Nifty consistently remains near the upper Bollinger band, signifying the strong bullish momentum. After successive rise, there might be some consolidation in the 52,200-53,000 zones; however a breach of the 53,040 level could stretch the index  towards the 53,280-53,350 levels.

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates

Technically, the Nifty broke out of the short-term consolidation zone of 23,330 – 23,670 in Tuesday’s session, and a day after found support near the breakout point of 22,670. Based on this breakout, the rally may extend towards the 24,000 level. Therefore, it is advisable to adopt a buy-on-dips strategy for Nifty. On the downside, 23,670 will serve as immediate support for the index.

The Bank Nifty experienced a breakout of the rounding bottom pattern above 51,134, leading to a strong rally. On the higher side, 53,000 will act as an immediate hurdle for Bank Nifty. If the index sustains above the 53,000 level, the rally could extend towards 54,000.

Rupak De, Senior Technical Analyst, LKP Securities

The sentiment is likely to remain positive as long as the Nifty stays above 23,700. On the higher end, a decisive move above 24,000 could take the index towards 24,200.

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities

The Bank Nifty continued its strong momentum, just shy of the 53,000 mark where fresh call writing is visible. The undertone remains bullish, and a buy-on-dip approach is advisable with immediate strong support at the 52,500-52,400 levels. 

Primary Market Update

Allied Blenders, and 3 other SME IPOs to close today, on June 27. The main board IPO was subscribed 67 per cent so far. Among others Divine Power IPO has seen up to 60.5 times subscription and Petro Carbon 7 times.