Green Shoots Emerge: Nifty Closes Higher as Investor Confidence Returns

Yesterday’s Pick

SBIN 30MAY24 830 CE Rs 5625 ( PER 5 LOT )
COALINDIA RS 4000 ( 200 Quanity)
Investment Pick LICI Rs 13000 ( 200 Quanity)
SHORT TERM PICK FORTIS Rs 8200 ( 200 Quanity)
Short Term Pick APLAPOLLO Rs 20000 ( 200 Quanity)
ICICIBANK 30MAY24 1120 PE Rs 10500 (Per 5 Lot )

Nifty Technical View

A bullish candlestick pattern with a long lower shadow on the daily charts of Nifty indicates buying support at lower levels. Additionally, the index has been making higher highs for the past eight sessions and is trading above all key moving averages, showing a positive trend. The Relative Strength Index (RSI) is at 59.12, reinforcing this positive outlook. We believe that if the index closes and sustains above 22,600 in the upcoming sessions, it could potentially reach 22,800. Until then, the index might consolidate, with support found between the 22,500 and 22,400 levels.

Indian Vix
Despite a slight decrease on Wednesday, volatility remains high, indicating that bulls should be cautious at current levels. Experts suggest that for the market to stabilize, volatility needs to decrease to around 15-16 levels. The India VIX, which measures market fear, dropped by 1.57 percent, going from 21.81 to 21.47.

FII and DII Data
Foreign institutional investors (FIIs/FPIs) persisted in selling Indian equities. On May 21, they net sold shares amounting to Rs 686.04 crore. In contrast, domestic institutional investors (DIIs) net purchased equities worth Rs 961.91 crore during the same period

Put Call Ratio
The Nifty Put-Call ratio (PCR), which reflects market sentiment, increased to 1.20 on May 22 from 1.15 the previous day. A rising PCR above 0.7 or exceeding 1 means traders are selling more Put options than Call options, generally signaling a strengthening bullish sentiment in the market. Conversely, if the ratio drops below 0.7 or moves towards 0.5, it indicates more selling in Call options than Put options, reflecting a bearish market mood.

Stocks in the news

Sun Pharmaceutical Industries Ltd :
On May 22, the company reported a consolidated net profit of Rs 2,654.5 crore for the March quarter, a 34 percent increase from the same period last year. Consolidated revenue reached Rs 11,982.9 crore, up 9 percent from Rs 10,930.6 crore a year ago, although it fell short of the estimate of Rs 12,241 crore. The company’s board declared a final dividend of Rs 5 per equity share for the financial year 2023-24.

Welspun Enterprises Limited :
Welspun Enterprises Limited emerged as the lowest bidder to construct an access-controlled multi-modal corridor from Navghar to Balavali in Maharashtra. The quoted amount for the project is Rs 1,864.71 crore, and it is expected to be completed within 36 months from the date of the notice of commencement, according to a regulatory filing by the company.

Nifty and Bank Nifty Support and Resistance level

Nifty :-
Resistance 22,625, 22,660, and 22,715
Support based 22,515, 22,480, and 22,425

Resistance 48,035, 48,200, and 48,455
Support 47,520, 47,360, and 47,095

Index Future levels

Nifty Futures Buy near 22600.The suggested targets for this are 22,800 and 22,900, with a stop loss set at 22,380.

Bank Nifty future buy above 48000 index is expected to up side levels of 48300 and 48650 and level 47700 will act as a stop loss.

Fundamental Pick : Finolex Cables Ltd

Finolex Cables Ltd, established in 1958, is an Indian manufacturer of electrical and telecommunication cables with operations spanning India, Africa, the Middle East, and Southeast Asia. The company offers a wide range of products, including wires and cables, switches, fans, and lighting products. Some of their top products include PVC insulated cables, Power cables, Control cables, Instrumentation cables, optical fibre cables, Aerial bunched cables. Finolex also has several popular brands, such as Finolex, Finolex Gold, Finolex Lite, Finolex Star, Finolex Plus, and Finolex Fan.

Finolex Cables Ltd has seen its revenue increase over the last two quarters, rising from ₹1,250 crore to ₹1,290 crore, with an average growth rate of 2.9% per quarter. Foreign institutional holdings also increased from 11.05% to 11.56% in the March 2024 quarter. Over the past month, the FINCABLES stock has gained 7.8%. In comparison, KEI Industries Ltd has significantly outperformed Finolex Cables over the past three years, providing a return of 598.2%, which is 424.8% higher than Finolex Cables. Over the past year, KEI Industries Ltd has given a 111.3% return, surpassing Finolex Cables by 91.3%. Promoter holdings in Finolex Cables remained unchanged at 35.86% in the March 2024 quarter.

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

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