Indian equities continued their winning streak on Friday as investors enlarged their positions in realty, banking and metal counters. TheNifty June F&O series, too, kick started on an upbeat note as buyers shrugged off rising food inflation concerns and bought blue chips across the board.
The Sensex closed shop at 18266.10, higher by 221.46 points or 1.23% and the Nifty ended up 63.30 points or 1.17% at 5475.65.
Will it be a sweet start for the Nifty June F&O series? Perhaps, yes, as investor confidence pours in at lower levels, Deven Choksey, managing director of KR Choksey Securities said. “A lot of put writing options around 5,200-5,300 has also been witnessed, suggesting that 5,300 levels could serve as a floor for the new series,” he added.
“Going ahead, it's likely to rise up to 5.600-5,650 levels in the month of June,” he further stated.
Here's how market performed on Friday
In the similar manner, Mithil Pradhan, technical and derivatives analyst, Vikhroli Polycom pointed out that the market may bottom out around 5,300-5,400 levels.
“On the upside, the 50-scrip barometer may face stiff resistance around 5,498 and 5,545 levels; however, once it breaches 5,550-5,549 on the top, it has a target of 5,800-5,900 levels,” Pradhan added.
“In the curent scenario, one need to believe in the proverb: 'never short a dull market’. One can be cautiously long as the runaway to heights won't be quick,” Pradhan further endorsed, adding that June, by default, kicks off on a subtle note. “As per the historical charts of past 20 years, no major downturn during this month has been encountered,” Pradhan said.
So, what are the defensive bets in the unsettled economic scenario? “One can park their money in Ranbaxy, Wockhardt, TCS, or ITC in the current choppy market,” Pradhan concludes.
