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“Deciphering Nifty’s Failed Attempts at New Highs: Will the Red Trend Persist?”


Yesterday’s Pick

Dmart Cash Rs 36,800 ( Quantity 200)
COROMANDEL Cash Rs 46,600 ( Quantity 200)
DHANUKA AGRITECH Rs 80,400 ( Quantity 200)
NIFTY 13 JUNE 23300CE Rs 5250 ( Per 5 Lot )
WOCKPHARMA Rs 3600 ( Quantity 200)

Nifty Technical View

A small negative candle with an upper shadow formed on the daily chart. After a recent sharp uptrend, the market’s behavior in the last two sessions suggests a potential minor downward correction in the short term. Indices initially overcame early weakness and rose steadily, but profit booking emerged towards the end of the session. Over the past two days, the Nifty has been moving within a range, with the VIX dropping below 15. Despite multiple attempts, prices failed to break above the 23,380–23,410 range and reversed to close at 23,264. Experts believe that if the index moves below 23,200, short-term selling pressure may be triggered unless it closes above 23,410.

Indian Vix

Volatility continues to decrease as the India VIX, also known as the fear index, closed 9.96 percent lower on an intraday basis, settling at 14.76.

FII And DII Data

Foreign institutional investors (FIIs/FPIs) sold Indian stocks worth Rs 111.04 crore, while domestic institutional investors (DIIs) were net buyers, acquiring Indian stocks valued at Rs 3,193.29 crore during the same period.

Put Call Ratio

The Nifty Put-Call Ratio (PCR), a measure of market sentiment, improved moderately to 1.02 on June 11 compared to the previous session. Generally, a PCR above 0.7 or surpassing 1 indicates bullish sentiment, while a ratio below 0.7 or moving towards 0.5 suggests a bearish mood.

Stocks in the news

Ola Electric :
Bhavesh Aggarwal-led Ola Electric Technologies has received approval from market regulator SEBI for its initial public offering (IPO) to raise ₹7,500 crore, according to sources close to the development. Ola Electric is the first-ever Indian EV two-wheeler manufacturer to file for an IPO. The company submitted its draft red herring prospectus (DRHP) to the markets regulator on December 22, 2023.

Vodafone Idea:
has received in-principle approval for ₹14,000 crore from a consortium of banks led by the State Bank of India. Sources indicate that this consortium includes various PSU banks and two major private sector banks. Earlier this year, Vodafone Idea informed its shareholders about plans to raise ₹25,000 crore of additional funds from lenders. Additionally, Vodafone Idea successfully raised ₹18,000 crore through a follow-on public offer (FPO) in April.

Nifty and Bank Nifty Support and Resistance level

Nifty
Resistance 23185, 23115, and 22,930
Support based 23370, 23485, and 23,670

BankNifty
Resistance 50150, 50515, and 51,145
Support based 49520, 49255, and 48,625

Index Future levels

Nifty Futures Sell below 23300. The suggested targets for this are 23100 and 23,000, with a stop loss set at 23,550.

Bank Nifty future sell below 49,800 index is expected to see down side levels of 49400 and 49200 and level 50,130 will act as a stop loss.

Fundamental Pick : M&M Finance

Buy at ₹291, target ₹307, stop loss ₹282.

Mahindra & Mahindra Financial Services Ltd (MMFSL) is a leading non-banking financial company in India, established in 1991. The company offers a broad range of financial services and solutions to individuals, rural and urban customers, and small and medium enterprises (SMEs). MMFSL’s core operations encompass vehicle finance, rural finance, microfinance, and SME finance. Their product portfolio includes vehicle loans, tractor loans, two-wheeler loans, commercial vehicle loans, SME loans, microfinance loans, and housing finance. Additionally, MMFSL provides insurance products, mutual fund investments, and other financial services. The company’s well-known brands include Mahindra Finance, Mahindra Rural Housing Finance, Mahindra Insurance Brokers, Mahindra Mutual Fund, and Mahindra Investment Services. MMFSL has a significant presence in rural India, operating over 2,000 branches across more than 20,000 villages. It also has a strong presence in urban India, with over 1,200 branches in more than 500 cities.

MMFSL’s net profit has increased over the last three quarters, from ₹281.09 crore to ₹670.35 crore, with an average quarterly growth rate of 31.0%. Revenue has been on the rise for the last nine quarters, increasing from ₹2.90K crore to ₹4.34K crore, with an average quarterly growth rate of 4.9%. Promoters’ holdings remained stable at 52.16% as of the March 2024 quarter.

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

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