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Nifty hits fresh high on Wednesday but ends in negative terrain

19 Jun 2024 Evaluate

Indian equity benchmark -- Nifty -- ended Wednesday’s trading session in a negative terrain despite rally in banking and IT sectors' stocks. After making a positive start, soon index slipped into red and traded on lower note, as traders took a note of the Reserve Bank Governor Shaktikanta Das’ statement that India should avoid adventurism and continue to focus on bringing down inflation towards the target of 4% despite the growing clamour to signal a pivot in monetary policy. He stated ‘At this point there is again clamour that one should change the stance. But we want clear evidence that inflation should moderate and perhaps a little faster. It will be too premature to talk in terms of changing the stance’. 

In afternoon session, index trimmed most of its losses to trade near neutral line, as some support also came after Central Board of Direct Taxes (CBDT) has said that net direct tax collection grew 21 per cent to Rs 4.62 lakh crore during April 1 to June 17, 2024 period, on higher advance tax mop-up. The first instalment of advance tax, which was due on June 15, showed collections rose 27.34 per cent to Rs 1.48 lakh crore. In last leg of trade, index added some gains to trade near day’s high point, but ended in a negative terrain.

Traders were seen piling up positions in Bank, Private Bank and Financial services, while selling was witnessed in Realty, Consumer Durables and Oil & Gas. The top gainers from the F&O segment were Chambal Fertilisers and Chemicals, Axis Bank and HDFC Bank. On the other hand, the top losers Zee Entertainment Enterprises, Hindustan Aeronautics and Gujarat Gas. In the index option segment, maximum OI continues to be seen in the 22900 - 24100 calls and 22400 - 22600 puts indicating this is the trading range expectation.

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