Expect Nifty to hit 12,400 in near term, albeit June may be volatile

Immediate support for the index is seen at 11,750 with targets placed at 12,100-12,400. A breach of 11,750 can witness some selling pressure but we expect the same to be bought into.

May series witnessed extreme volatility. The index traded in the range of 11,000-12,000 as we witnessed the general elections along with global headwinds. Volatility index tested the 30-mark before collapsing back to normal range.

Banking led the momentum with private banks gaining the most. Select PSU banks and financials also added to the rally. Auto and metals remained laggards failing to contribute to the momentum.

We enter the June series with a positive bias. Nifty continues to trade with a positive tone and is expected to test 12,400 in the near term. June is expected to witness volatility as we are at an inflection point for the markets.

Going ahead, one can expect a 10-15 percent movement on either side. We expect a positive bias, although confirmation of the same is awaited.

From the rollover perspective, realty and PSU banks have witnessed strong rollover while cement and auto stocks have seen weaker rollover.

Open interest concentration is seen at 11,500 Put and 12,000 Call.

Immediate support for the index is seen at 11,750 with targets placed at 12,100-12,400. A breach of 11,750 can witness some selling pressure but we expect the same to be bought into.

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