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Bulls taken initative nifty made all time high but closes in red what next?


Yesterday’s Pick

FINNIFTY 28 MAY 22000CE Rs 22000 ( PER 10 LOT )
SENSEX 24 MAY 75800CE RS 5000 ( PER 10 LOT )
KPITTECH CASH Rs 9000 ( PER 200 Quantity )

Nifty Technical View

The Nifty 50 struggled to stay above the key psychological level of 23,000 for the second day in a row but ultimately ended slightly lower, showing increased market volatility. This suggests that investors are being cautious, even though the overall trend still favors the bulls. As a result, the index is expected to hover around the 23,000 mark in the coming days and might try to reach the higher end of its upward trend channel, which is between 23,100 and 23,200. If the index can close and maintain a position above this range, the next target to watch is 23,500, with strong support at 22,800.

Indian Vix

Volatility stayed elevated, hitting a two-year peak on May 27, as the market anticipates the Lok Sabha election results. Experts predict that volatility will stay high until the results are announced. The India VIX, a measure of market volatility, rose by 6.83 percent to 23.19, marking its highest close since May 25, 2022.

Put Call Ratio

The Nifty Put-Call ratio (PCR), a gauge of market sentiment, dropped to 1.02 on May 27 from 1.14 in the previous session. An increasing PCR above 0.7 or surpassing 1 typically indicates that traders are selling more Put options than Call options, suggesting a strengthening bullish sentiment in the market. Conversely, if the ratio falls below 0.7 or moves toward 0.5, it indicates higher selling in Call options compared to Put options, reflecting a bearish mood in the market.

FII And DII Data

Foreign institutional investors (FIIs/FPIs) continued selling Indian equities, with net sales amounting to Rs 541.22 crore on May 27. Meanwhile, domestic institutional investors (DIIs) bought equities worth Rs 922.60 crore during the same period.

Stocks in the news

Adani Energy

Adani Energy Solutions plans to raise ₹12,500 crore through a qualified institutional placement of shares or other eligible securities. This decision was announced after a board meeting convened to discuss the proposal. The plan to raise funds will be presented to shareholders for approval at the upcoming annual general meeting next month.


NTPC

India’s largest power generator announced on Monday its intention to launch the highly anticipated initial public offering (IPO) of NTPC Green Energy (NGEL) by October-November this year. NGEL, which consolidates NTPC’s green energy operations, will play a crucial role in helping the company achieve its renewable energy target of 60 gigawatts (GW) by FY32.

Nifty and Bank Nifty Support and Resistance level

Nifty
Resistance 23,065, 23,120, and 23,210
Support based 22,880, 22,825, and 22,730

BankNifty

Resistance 49,585, 49,735, and 49,980
Support 49,095, 48,950, and 48,700

Index Future levels

Nifty Futures Buy above 22850. The suggested targets for this are 23,200 and 23,300, with a stop loss set at ,22,650.

Bank Nifty future buy above 49300 index is expected to up side levels of 49600 and 49800 and level 48950 will act as a stop loss.

Fundamental Pick : Birlasoft

Buy at ₹635, target ₹665, stop loss ₹620.

Birla Soft Ltd, formerly known as KPIT Technologies Limited, is a global leader in providing innovative IT consulting, software engineering, and product development solutions across various sectors. The company has strategic partnerships with major enterprise technology and cloud providers, including SAP, Oracle, J D Edwards, Microsoft, AWS, Google, Salesforce, and ServiceNow, to develop cutting-edge next-generation software and digital services. Over the years, Birla Soft has received numerous accolades, such as the Excellence in Export Award from the Indian Government in 1994 and the Outstanding Achievement Award from Oracle in 1995.


Birlasoft announced their Q4 results on April 29, 2024, showing significant growth. The company’s revenue increased by 11.1% year-over-year (YoY) and 1.46% quarter-over-quarter (QoQ). Profits rose substantially, with a 60.55% increase YoY and an 11.81% increase QoQ. Selling, general, and administrative expenses declined by 3.21% QoQ but increased by 5.28% YoY. Operating income grew by 3.8% QoQ and surged by 37.38% YoY. The earnings per share (EPS) for Q4 was ₹6.39, representing a 57.88% increase YoY. In terms of stock performance, Birlasoft has delivered a 2.27% return over the past week, a 24.47% return over the last six months, but a -6.43% return year-to-date (YTD). Currently, Birlasoft has a market capitalization of ₹18,624.27 crore, with a 52-week high of ₹861.85 and a 52-week low of ₹273.05.

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

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