Friday’s Pick
BANKNIFTY 31 JUL 50700CE RS 10,800/-
NIFTY 1 AUG 24800CE RS 6,250/-
Technical view
The Nifty 50 index has shown a strong upward trend, depicted by a significant bullish candlestick pattern on the daily charts. This movement was accompanied by higher-than-average trading volumes and the index rising above all its key moving averages. The RSI (Relative Strength Index) momentum indicator has given a positive signal, indicating a potential continuation of the upward trend. On the weekly charts, the MACD (Moving Average Convergence Divergence) also indicates a bullish momentum. The index formed a bullish candlestick pattern with a long lower shadow, suggesting that investors are buying at lower price levels.
Indian Vix
Volatility stayed within the range of the previous day and remained below all key moving averages, which favored the bulls. The India VIX, also known as the fear index, dropped by 2.93 percent to 12.25 on Friday and fell by 17.4 percent over the week.
FII And DII Data
Foreign institutional investors (FIIs/FPIs) bought Indian stocks worth Rs 2,546.38 crore, while domestic institutional investors (DIIs) purchased Indian stocks valued at Rs 2,774.31 crore during the same period.
Put Call Ratio
The Nifty Put-Call ratio (PCR), which reflects market sentiment, rose to 1.36 on July 26, up from 1.21 in the previous session. A rising PCR above 0.7 or surpassing 1 suggests that traders are selling more Put options than Call options, which typically indicates a strengthening bullish sentiment in the market. Conversely, if the ratio falls below 0.7 or moves toward 0.5, it suggests higher selling in Call options compared to Puts, reflecting a bearish sentiment in the market.
Stocks in the news
Coal India: Coal India, the state-run coal giant, is diversifying into the non-coal sector and is keen on participating in more auctions to secure its first lithium block.
UltraTech Cement: the flagship company of the Aditya Birla Group, will acquire a 32.72 percent stake in India Cements for ₹3,945 crore from the company’s promoters and its associates. Following regulatory approvals, UltraTech, the largest cement company in the country, will make an open offer to India Cements shareholders at ₹390 per share, according to a statement released by the company on Sunday.
Nifty and Bank Nifty Support and Resistance level
Nifty :-
Resistance 24,875, 24,980, and 25,150
Support based 24,530, 24,425, and 24,250
BankNifty:
Resistance 51,385, 51,640, and 52,005
Support based 50,680, 50,450, and 50,085
Index Future levels
Nifty Futures Buy above 24900 The suggested targets for this are 25,100 and 25200 with the stop loss set at 24,700.
Bank Nifty Future Buy above 51,400 index is expected to see down side levels of 51700 and 51,900 and level 51,100 will act as a stop loss.
Momentum Pick: SBI
Buy at ₹863| Target price: ₹900 |Stop Loss:₹ 844
State Bank of India (SBI) is the largest banking and financial services company in India, with a history that dates back to 1806 when it was incorporated as the Bank of Calcutta. Today, SBI is the largest commercial bank in India in terms of assets, deposits, profits, branches, customers, and employees. SBI provides a wide array of banking and financial services, including retail banking, corporate banking, investment banking, private banking, asset management, insurance, venture capital, and private equity. Its key products include savings accounts, current accounts, fixed deposits, loans, credit cards, and debit cards. SBI also offers a variety of popular brands, such as SBI Life Insurance, SBI Mutual Fund, SBI General Insurance, SBI Cards, and SBI Securities.
State Bank of India’s revenue increased by 20.51% year-over-year to ₹1,64,914.36 crore in Q4 2023-2024. On a quarterly basis, the bank saw a 7.74% growth in revenue over the last three months. The net profit for SBI jumped 18.18% year-over-year to ₹21,384.15 crore in Q4 2023-2024. On a quarterly basis, net profits surged by 93.27% over the past three months. Despite these gains, the net profit margin decreased by 1.93% year-over-year to 12.97% in Q4 2023-2024. However, on a quarterly basis, the net profit margin improved by 79.4% over the last three months.
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
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