BSE Sensex fell 130.31 points to 52,344.45, and Nifty50 declined 116 points to 15,683.35 amid selling in metals, auto, banking & financials, infrastructure, energy and pharma stock.
“Markets are expected to witness some profit booking to a broad rangebound correction as news toggle between vaccinations and the new delta variant causing the third wave.
As we near the end of earnings season, more than 500 corporates will release their March quarter numbers in the coming week including majority of smallcap and midcaps.
The foreign institutional investors’ inflow continued though there was some selling during the week, partly due to rising US dollar index after Fed hinted rate hikes in 2023 from 2024 earlier amid improving economic data points.
Agro-chemical manufacturer India Pesticides will open its initial public offering for subscription on June 23, with a price band of Rs 290-296 per equity share.
The grey market premium for Sona Comstar is Rs 5 on top of the higher end of the price band of Rs 285-291, while Shyam Metalics traded with a premium of Rs 135 in the grey market over the higher end of the price band of Rs 303-306 per equity share.
Nifty50 showed a smart recovery of over 200 points to end Friday’s trade with a loss of just 8 points.
“We are of the view that post strong uptrend rally the market is hovering in the range of 15,450 to 15,900 levels.
He feels further upside may also continue which could lift the index till 16,050-16,130.
Call writing was seen at 16000, 16200 and 15700 strikes, with unwinding at 15400 and 15200 strikes.
The June futures & options contracts will expire on coming Thursday and positions will be rolled over to next month.
“On the options front, the highest option concentration is placed at 15800 Call and 15500 Put strikes.
“Similarly Put base at 15500 and 15600 strikes is almost equal.
Despite the intraday volatility seen in global markets, the volatility index remained subdued and ended the week below 15 levels once again, at 14.79 levels against 14.10 on a week-on-week basis.
Foreign exchange reserves for the week ended June 18 will be released on Friday and this is an important data point to watch out for.