Yesterday’s Pick
FINNIFTY 07 MAY 21850PE Rs 4875 ( Per 5 Lot )
Daily Newsletter
Nifty Futures sell 22600—22500, Rs 5000 ( Per 2 Lot ).
Bank Nifty future sell 49000—48900, Rs (3000 ( Per 2 Lot)
Nifty Technical View
The Nifty 50 had another down day, marking its second consecutive decline, as it remained within a narrow trading range. The prevailing sentiment appears to be shifting towards bearish, with more sellers than buyers and heightened volatility reaching a 15-month high. Despite an attempt to reach 22,600 on Monday, selling pressure erased all gains amid the volatile market conditions. This suggests a potential downturn in the Nifty’s chart, with selling opportunities emerging when the market rises within a specific range. As long as the Nifty maintains above the support level of 22,300, there’s a possibility of a temporary rebound. However, a drop below this level could indicate further weakness in the short term. Therefore, it’s crucial to monitor how the market behaves around the 22,300 level in the coming sessions.
Indian Vix
The ongoing trend of increasing volatility for the eighth consecutive session is placing pressure on bullish investors and providing an advantage to the bears. India’s VIX, often referred to as the fear index, surged by 13.56 percent to reach 16.6, marking its highest closing level since February 1, 2023. This sharp increase represents a nearly 63 percent surge over the span of eight days, signaling heightened market uncertainty and apprehension among investors.
FII and DII data
On May 6, foreign institutional investors (FIIs) were net sellers of shares amounting to Rs 2,168.75 crore, according to provisional data from the NSE. In contrast, domestic institutional investors (DIIs) were net buyers, injecting Rs 781.39 crore into the market. This suggests a divergence in investment behavior between foreign and domestic institutions on that particular day.
Put Call Ratio
On May 6, the Nifty Put-Call ratio (PCR), a key indicator of market sentiment, declined further to 0.85 compared to the previous session’s level of 0.89. When the PCR increases, especially above 0.7 or exceeding 1, it signifies that traders are selling more Put options than Call options. This typically suggests a strengthening bullish sentiment in the market. Conversely, if the ratio falls below 0.7 or trends toward 0.5, it indicates that selling in Call options is surpassing that in Put options, reflecting a bearish sentiment prevailing in the market.
Nifty and Bank Nifty Support and Resistance level:
Nifty
Resistance 22460, 22600 and 22680 levels.
Support 22400, 22300 and 22260 levels.
BankNifty
Resistance 48940, 49270 and 49450.
Support 48800, 48690 and 48510.
Index Future levels
Nifty Futures Buy above 22600.The suggested targets for this are 22,800 and 22,900, with a stop loss set at ,22400.
Bank Nifty future buy above 49130 index is expected to down side levels of 49350 and 49550 and level 48900 will act as a stop loss.
Stocks in the news
Gujarat Gas:
The city gas distribution company saw an impressive 86 percent quarter-on-quarter growth in net profit, reaching Rs 409.5 crore for the quarter ended March FY24. This surge was propelled by a combination of factors, including a reduction in spot gas prices and an uptick in volumes. Additionally, revenue from operations, excluding excise duty, experienced a sequential growth of 5.2 percent, reaching Rs 4,134.2 crore for the quarter.
Lupin:
The global pharma company has recorded consolidated net profit at Rs 359.4 crore for the fourth quarter of financial year 2024, growing 52.3 percent over the corresponding period of previous fiscal. Revenue from operations increased by 12 percent on-year to Rs 4,960.8 crore for the quarter.
Today’s Fundamental Pick : MARICO
BUY 535|TGT 574| Stop Loss 516
Marico Ltd is indeed a prominent Indian consumer products company founded in 1988 by Harsh Mariwala. The company has diversified operations across multiple sectors, including health and beauty, food and beverages, as well as home and personal care. Marico has established a strong presence in more than 25 countries spanning Asia, Africa, and the Middle East, showcasing its global footprint and reach in the consumer goods market.
Marico Ltd has disclosed a consolidated net profit of Rs 320 crore for the fourth quarter of the financial year 2023-24, marking a growth of 4.9 percent compared to the same period last year. Revenue also saw an uptick, increasing by 1.69 percent from the previous year to reach Rs 2,278 crore. Additionally, the company reported earnings before Tax, Interest, Amortization, and Depreciation (EBITDA) of Rs 442 crore for the quarter, reflecting a notable increase of 12.5 percent. The EBITDA margin stood at 19.4 percent, showing an improvement of 190 basis points over the previous year.
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
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