“BJP Emerges as Dominant Force in Election Outcome; Market Reacts with 8% Nifty Decline”

Nifty Technical view

The Nifty 50 index displayed a significant downward trend on the daily charts, creating a large bearish candlestick pattern. Indicators of market momentum have signaled a negative crossover, suggesting further decline. The index closed below the lower boundary of its ascending trend channel, settling at 21,885. Moving forward, the index is expected to experience volatility with a tendency to decline, with key support anticipated around the 21,250 level.

Indian Vix

Volatility surged significantly during the announcement of the Lok Sabha election results, creating challenges for bullish traders. The India VIX, also known as the fear index, spiked to a high of 31.71 during the day and ended 27.75% higher at 26.75, marking its highest closing level since March 2022.

FII And DII Data

Foreign institutional investors (FIIs/FPIs) sold more Indian stocks than they purchased, leading to a net outflow of Rs 12,436.22 crore. Similarly, domestic institutional investors (DIIs) were also net sellers, offloading Indian stocks worth Rs 3,318.98 crore during the same period.

Put Call Ratio

June 4 from 1.04 in the previous session. Typically, when the PCR increases or exceeds 0.7 or 1, it suggests that traders are selling more Put options than Call options, indicating a strengthening bullish sentiment in the market. Conversely, if the ratio drops below 0.7 or moves towards 0.5, it implies that selling of Call options is higher than that of Put options, reflecting a bearish sentiment in the market.

Stocks in the news

Punjab National Bank: On Tuesday, Punjab National Bank’s (PNB) Board approved the process to divest 10% of its shareholding in its associate company, Canara HSBC Life Insurance, through an initial public offering (IPO). Currently, PNB holds a 23% stake in Canara HSBC Life Insurance.
Tata Motors : Tata Motors announced on Tuesday that its board has approved the creation of a wholly-owned subsidiary to manage its commercial vehicles business. The proposed name for the new unit is TML Commercial Vehicles Ltd (TMLCVL). Tata Motors confirmed this plan in a regulatory filing, stating that the new entity will be a wholly-owned subsidiary of the company.

Nifty and Bank Nifty Support and Resistance level


Resistance 22,840, 23,290, and 24,015
Support based 21,390, 20,940, and 20,220


Resistance 49,645, 50,730, and 52,480
Support based 46,140, 45,055, and 43,300

Index Future levels

Nifty Futures Sell Near 22100. The suggested targets for this are 21800 and 23,800, with a stop loss set at ,2,150.

Bank Nifty future buy above 47200 index is expected to see up side levels of 47500 and 47500 and level 46900 will act as a stop loss.

Fundamental Pick : DABUR

Buy at ₹ 580 , target ₹651, stop loss ₹544.

Dabur India Ltd, a prominent Indian consumer goods company established in 1884, operates in various sectors such as health care, hair care, skin care, home care, and food and beverages. Some of its top products include Chyawanprash, Hajmola, Vatika, Odonil, and Real Juice, with popular brands like Dabur, Vatika, Hajmola, Real, and Fem.For over 130 years, Dabur India Ltd has maintained its leadership in the Indian consumer goods market and has successfully established a strong presence in more than 60 countries worldwide.

Dabur India anticipates continued revenue growth outperformance in the near term, driven by higher growth in rural areas compared to urban regions. The Food Safety and Standards Authority of India has instructed companies to remove claims of 100% fruit juice from labels and advertisements. In response, Dabur Ltd adapts its marketing strategies to local languages and cultural nuances, fostering familiarity and trust in regional and rural markets. The company has partnerships for various products across India and is experiencing increasing demand for its summer-centric products amid intensifying heatwaves across the country.

Meanwhile, there is a dispute between the promoters of Dabur and Religare’s board over corporate governance and insider trading issues. Dabur India is expanding its rural presence by adding 22,000 villages to its network. The company’s CEO is optimistic about a gradual increase in consumption trends in FY25 and expects mid-to-high single-digit volume growth. Investments in Dabur India are attractive as FMCG and IT sector stocks rebound from their long-term support levels.

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

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