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As the trading setup for July 8 approaches, investors are eager to see if the dips on the Nifty will continue to be bought into. Multiple stocks are set to react to their quarterly business updates, providing opportunities for investors. Stocks such as Titan, IndusInd Bank, Marico, Dabur, and others reported their updates on Friday and over the weekend.
Market analysts are closely monitoring the Nifty’s performance, especially in light of recent consolidation breakouts. The Nifty50 recently saw a breakout above the 9,150-9,200 zone, led by short-covering moves on banking and financial stocks. The BankNifty gained around 11 percent for the week, while the Nifty saw a 5 percent increase during the same period.
Global equities have been showing buoyancy, leading foreign institutional investors (FIIs) to cover heavy short positions in the Indian market. Options writers have been adjusting their positions, with a focus on ATM strikes. Rollovers for Nifty/Bank-Nifty stood at 75 percent and 81 percent, indicating significant interest in the market.
FII Derivatives Stats show intense short-covering moves by FIIs in recent days, unwinding index futures short positions. The long/short ratio on index futures sits at 1.71x levels, with cash-based selling continuing from FIIs. Despite recent market gains, analysts believe that the Nifty’s corrective phase is likely to continue, with immediate hurdles near the 9,600-9,700 zone.
Sectors like Banking and financials, metals, and autos are showing positive trends, indicating opportunities for investors. The setup for the June series suggests that bouts of short-covering from FIIs and catch-up trades to global peers will play a significant role. As the market continues to rally, participation from the broader markets signals that dips are likely to be bought into in the near term.
