Friday’s Pick
BANKNIFTY 11SEP 51000CE RS.3750/- ( 5 Lot)
SHORT TERM PICK NARAYANA HRUDAYALAYA LTD RS.8000/- ( 200 Quantity)
BANKNIFTY 11SEP 51000PE RS.6000/- ( 5 Lot )
Investment Pick COFORGE LTD RS.4,500/- (15 Quantity)
Nifty Technical View
The market experienced a sharp decline on September 6, with trading volumes exceeding average levels. The Nifty 50 decisively breached the critical support level of 25,000, marking the largest single-day drop since August 5. The index fell by 293 points, or 1.17 percent, to 24,852. This significant decline may signal a shift in the short-term trend from bullish to bearish. As a result, the next support for the index is likely to be at 24,500, which coincides with the 50-day Exponential Moving Average (EMA). On the upside, the hurdle lies at 25,050.
India Vix :
On Friday, volatility surged significantly, surpassing the 15 mark and causing unease among bullish investors. If volatility remains above 15, it is advisable for bulls to exercise caution. The India VIX, a fear gauge, increased by 7.11 percent to 15.22, up from 14.2 levels.
Put-Call Ratio
The Put-Call Ratio (PCR) on September 6 declined to 0.92 from 1.33 in the previous session. A higher PCR, exceeding 0.7 or reaching 1, suggests that traders are selling more Put options than Call options, generally indicating a bullish sentiment in the market. Conversely, a PCR below 0.7 or approaching 0.5 indicates that selling of Call options is outpacing selling of Put options, reflecting a bearish market mood.
FII And DII Data :
Foreign institutional investors sold Indian stocks worth Rs 688.69 crore on September 5th, while domestic institutional investors bought stocks worth Rs 2,970.74 crore.
Stocks In News
Mazagon Dock Shipbuilders shares will be in focus as the company has won a subsea pipeline replacement contract from Oil and Natural Gas Corporation Ltd. (ONGC) on an EPC reimbursable basis (OBE) at the ceiling price of ₹1,486.40 crore, including all taxes and duties.
Gensol Engineering: As per reports, the company has increased the issue size from₹500 crore to ₹750 crore, adding an additional ₹250 crore to the previously approved amount. The company had announced ₹500 crore QIP on August 12.
Nifty and Bank Nifty Support and Resistance level
NIFTY :-
Resistance 25,080, 25,150, and 25,350
Support based 24,800, 24,700, and 24,550
BankNifty :–
Resistance : 51,150, 51,380, and 51,750
Support based 50,450, 50,250, and 49,850
Index Future levels
Nifty Futures Buy At 24,850 The suggested targets for this are 24,950 and 25,050 with the stop loss set at 24,750.
Bank Nifty Buy At 50,650 index is expected to upside levels of 50,850 and 50,950 and level 50,450 will act as a stop loss.
Momentum Pick: AETHER INDUSTRIES LTD
Buy above ₹ 925 | Target price: ₹ 975/1000 |Stop Loss:₹ 895
Aether Industries Limited, based out of Surat (Gujarat, India), focuses on producing advanced intermediates and specialty chemicals involving complex and differentiated chemistry and technology core competencies. Their products find application in the pharmaceutical, agrochemical, material science, coating, high performance photography, additive, and oil and gas segments of the chemical industry.
In FY24, R&D expenditure accounted for 15.4% of the overall standalone revenues. Co. expanded its R&D facility three-fold in FY23, by increasing the number of Fume Hoods from a mere 17 to 55.
Happy trading!
Commodity Samachar Securities
We Decode the language of the market
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