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Indian stock markets ended the week in the red, with Nifty forming a bearish pattern on weekly charts. The US markets closed higher on Friday, with Nasdaq up for the seventh straight week. The Nifty has support levels at 18,500 - 18,450 and hurdles at 18,680 - 18,780. Among the global events this week, the US Federal Reserve will announce its June monetary policy. Inflows into Indian equity mutual funds fell by 50% in May to Rs 3,240.30 crore. The INR ended at 82.4625 against the US dollar.

​VWAP is an important metric as it offers pricing insight into both the trend as well as the value of a stock.​

Gold’s safe-haven status is poised to receive a boost when markets reopen after weak economic data suggested several major economies, including the US, China and Eurozone, are on shaky ground. This has increased the outlook for the precious metal given investor attention is increasingly shifting from business activities and onto gold. As a result, gold and silver prices have recovered from lower levels and precious metals should remain bullish this week. Moreover, a positive outcome from the debt ceiling and the expectation that interest rates are set to pause should lend further support to the precious metals complex.

Investors are advised to book partial profits in stocks such as Suzlon Energy, Mazagon Dock and Tata Teleservices (Maharashtra) and trail the balance. Aamar Deo Singh, Head Advisory, Angel One, has recommended the same in light of the strong rally these stocks have seen. Part profit-booking in largecap metals and auto stocks is also suggested due to signals of fatigue in Nifty. The uptrend remains intact, but focus on quality and valuations for long-term entry in markets. India VIX is comfortable but investors should exercise alertness around the US Federal Reserve meeting outcome.

Three companies from the Tata Group, namely Tata Investment Corporation, TCS, and Tata Chemicals, will go ex-dividend this week. TCS has fixed June 15 as the record date for determining shareholder eligibility for a final dividend of Rs 24 per equity share, payable in dematerialized form. Tata Investment Corporation has fixed the record date as June 13 for paying a dividend of Rs 48 per share, while Tata Chemicals has declared a dividend of Rs 17.5/share with a record date of June 15 and an ex-dividend date of June 14. Shares of companies trade ex-dividend a day before the record date.

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Foreign investors have shifted dramatically from selling over INR 36,000 crore ($4.9 billion) worth of Indian equities in the first two months of 2021 to consistent net buying since March. The unbroken purchasing trend has shown an almost 10% rise from March low to current market highs bringing total inflows to nearly INR 44,000 crore via primary and secondary markets according to data from NSDL. The renewed interest was focused on financials and autos, with some selling in IT and metals.

Gold prices started the week positively due to weak US PMIs raising the likelihood of a pause in the June FOMC meeting. Hawkish comments from the ECB president also aided bullion. However, gold prices took a nosedive after central banks in Canada and Australia hiked rates after pausing previously. This raised convictions of Fed also following the same route due to core inflation if it fails to ease. Despite this, gold prices rose on Thursday as US weekly jobless claims rose again, for the third consecutive week. Meanwhile, China increased its gold reserves for a seventh straight month.

Stocks that were in focus include names like Indian Energy Exchange, which fell more than 10%, Sonata Software, which rose nearly 4% to hit a fresh 52-week high, while JustDial also clocked a fresh 52-week high on Friday.

Once we are able to cross above 18,750 on a closing basis, then short covering action can be there in the market. Then possibly Nifty can scale a new all-time high also. Buy-on-dip should be your strategy on the downside.