IT and Pharma among the most important sectors to watch out for ahead of 2024 budget, according to Reliagre Broking – CaFE Invest News

By Gaurav Arora

July Nifty futures are currently trading at a premium of around 40 points. After a vertical rally, the index has been moving sideways for the past few sessions.

There has been no major change in OI since the beginning of the series. In numbers, Open Interest stands at 6.33 lakh contracts as compared to 6.4 at the beginning of the series.

Bank Nifty did not meet expectations, the indicator, which at the beginning of the series was 2.2, is currently around 2.15. In the future, it may be on par with the benchmark.

In the case of index futures, FII Net Index Long exposure is over 84%. The statistics suggest that markets tend to consolidate and take profits at such large levels. However, the structure will remain positive, i.e. buying dips will continue to be rewarded.

Looking ahead, we believe that the 23,800-900 level is a base and will act as the main support for the index, with only a decisive close below this level likely to bring some declines.

Currently, the VIX indicator for Nifty is around 14. We believe that it may slightly increase towards 18-20 in the future in anticipation of an event i.e. Budget.

For Nifty, VWAP (Volume weighted average price) is around 23,800-850 which means it is a key level. It should be watched as Fresh Long formation Zone. For Bank Nifty it is 51,500-51,800.

The Bank Nifty to Nifty ratio currently stands at 2.15, with support for the indicator at 2.14 and resistance near 2.21.

We expect Bank Nifty to trade in lockstep with the benchmark. Any dip towards 51,500-800 should be considered as a fresh buying opportunity in the banking index with 50,500 as stop.

As far as sectors are concerned, IT, Pharma and FMCG are doing well in the Nifty ranking.

Great calendar layout:-

BUY Nifty 18 JULY 24 300 PE @ 123

SELL Nifty JULY 11 24 300 PE @ 65

Spread @ 58 Target – 100 Stop @ 25