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“How Election Results Could Influence Nifty: A Market Analysis and Forecast”


Yesterday’s Pick

CASH ADANI ENERGY SOLUTION LTD Rs 26,000 ( Quanity 200 )
INDUSINDBK 27JUN24 1520 CE RS 7500 ( PER 5OT )
FINNIFTY 04 JUNE 22600 CE Rs 24000 ( PER 5 LOT)
SENSEX 07 JUNE 76200CE RS 15000 ( PER 5 LOT)

Nifty Technical view

The Nifty 50 index is showing a strong uptrend, as it has been consistently reaching higher highs and higher lows. It is trading comfortably above all major moving averages. The Relative Strength Index (RSI), a momentum indicator, has shown a positive signal on both daily and weekly charts. The index is expected to exceed 23,500, with immediate support around 23,000. One of the main reasons for this optimism is that the index has closed significantly above the upper boundary of the Rising Channel.

Indian Vix

Volatility decreased significantly as the uncertainty surrounding the Lok Sabha election diminished, giving confidence to bullish investors. If this trend continues, it could further bolster the bulls. The India VIX, known as the fear index, dropped by 14.90 percent to 20.94, marking its lowest level since May 18.

Put-Call Ratio

A higher Put-Call Ratio (PCR), above 0.7 or 1, suggests a bullish market sentiment as traders are buying more puts than calls. Conversely, a PCR below 0.7 or moving towards 0.5 indicates a bearish sentiment with traders favoring calls over puts.

Stock in news

State Bank of India Ltd.
India’s largest lender, crossed ₹8 lakh crore in market capitalisation on Monday, having touched a new record high of ₹912 during the session. The stock had first hit the ₹7 lakh crore mark on March 7 this year. Since the start of the year, the stock has added over ₹3 lakh crore in market capitalisation.

Kalyan Jewellers India Ltd
Announced that it has signed a definitive agreement with Rupesh Jain, the Founder of Candere (Enovate Lifestyles Pvt. Ltd), to acquire his remaining 15 percent stake in Candere. This acquisition, for a consideration of ₹42 crore, will make Candere a wholly-owned subsidiary of Kalyan Jewellers. This move signifies Candere’s transition from an e-commerce platform to an omni-channel commerce model. The company has informed the stock exchanges about this share sale agreement.

Nifty and Bank Nifty Support and Resistance level

Nifty
Resistance 23,330, 23,390 and 23,500
Support based 23,115, 23,050 and 22,945


BankNifty
Resistance 51135, 51380 and 51,775
Support based 50340, 50090 and 49,695

Index Future levels

Nifty Futures Buy above 23500. The suggested targets for this are 23,700 and 23,800, with a stop loss set at 23,150.

Bank Nifty future buy above 51200 index is expected to see up side levels of 51600 and 51800 and level 50980 will act as a stop loss.

Fundamental Pick : PHOENIXLTD

Buy at ₹ 3350 , target ₹3752, stop loss ₹3134.

Phoenix Mills Ltd is a prominent real estate and retail company, established in 2005 and headquartered in Mumbai, India. The company operates across the real estate, retail, hospitality, and entertainment sectors. Its real estate portfolio comprises retail malls, commercial office spaces, residential projects, and hospitality ventures.

Phoenix Mills Ltd’s retail division features over 300 brands in its malls and retail outlets. Some of the popular brands include Nike, H&M, Zara, Adidas, Puma, Sephora, Lifestyle, Westside, Pantaloons, Central, and Shoppers Stop. Additionally, the company operates various food and beverage outlets, entertainment centers, and amusement parks.

Phoenix Mills Ltd’s stock rose by 3.45% to trade at ₹3253.3. Over the last five years, the company’s EPS growth was 17%, which is lower than the average annual share price increase of 38%. In Q4 FY24, Phoenix Mills reported a 32.6% year-on-year (YoY) increase in net profit and recommended a dividend of ₹5 per equity share for FY23-24. However, standalone net sales for March 2024 were down 5.66% YoY.

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

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