Friday’s Pick
Investment Pick BSE RS 14,000/- ( 100 Quantity)
Nifty Technical View
The market ended up one percent higher following a strong opening but couldn’t maintain its position above the short-term moving averages (10 and 21-day EMA), which align with the 24,400 level on August 9. This level is important to monitor for potential gains towards 24,700, the top of the bearish gap formed on August 5. If the index doesn’t close and hold above 24,400, it might enter a consolidation phase, with support expected around the 24,100-24,000 range, The Nifty 50 concluded the week down by 1.4 percent at 24,368.
India VIX
Volatility decreased significantly, providing more confidence to bullish investors. If the downtrend continues, it could become more favorable for the bulls. The India VIX, which measures market fear, fell by 7.63 percent to 15.34 from 16.6 on Friday, although it rose by 7.09 percent over the week.
Nifty PCR
The Nifty Put-Call ratio (PCR), a measure of market sentiment, increased to 1.09 on August 9, up from 1.04 in the previous session. A rising PCR, particularly above 0.7 or 1, suggests that traders are selling more Put options compared to Call options, typically signaling stronger bullish sentiment. Conversely, if the ratio drops below 0.7 or moves towards 0.5, it indicates that Call option selling exceeds Put option selling, which points to a bearish outlook in the market.
FII And DII Data
Foreign institutional investors (FIIs/FPIs) sold Indian stocks valued at Rs 2,626.73 crore, whereas domestic institutional investors (DIIs) Bought Indian stocks worth Rs 577.30 crore during the same period.
Stocks In News
Adani Enterprises The Hindenburg Research launched a broadside against SEBI chairperson Madhabi Buch, alleging she and her husband had stakes in obscure offshore funds used in the Adani money siphoning scandal. In a blog post, Hindenburg said 18 months after its damning report on Adani, “SEBI has shown a surprising lack of interest in Adani’s alleged undisclosed web of Mauritius and offshore shell entities.”
Coffee Day Enterprises Corporate dispute tribunal NCLT has ordered initiating insolvency proceedings against the parent company of Coffee Day Group which operates the Cafe Coffee Day chain of coffee houses. The Bengaluru bench of the NCLT on August 8 admitted the plea filed by IDBI Trusteeship Services claiming a default of Rs 228.45 crore.
Nifty and Bank Nifty Support and Resistance level
NIFTY :-
Resistance 24,350, 24,450, and 24,700
Support based 24,200, 24,000, and 23,900
BankNifty:
Resistance 50,750, 50,880, and 51,100
Support based 50,250 49,950, and 49,760
Index Future levels
Nifty Futures Buy Above 24,450 The suggested targets for this are 24,580 and 24,700 with the stop loss set at 24,100.
Bank Nifty Buy Around 50,580 index is expected to upside levels of 50,780 and 50,950 and level 50,450 will act as a stop loss.
Momentum Pick: SBI Life Insurance Company Ltd
Buy at ₹ 1730| Target price: ₹1815 |Stop Loss:₹ 1665
SBI Life Insurance Company Ltd is engaged in the business of life insurance and annuity. It was started as a Joint-venture between State Bank of India and BNP Paribas Cardif S.A.The company offers various products across individual and group categories such as participating, non-participating, pension, group gratuity, group leave encashment, group superannuation, group immediate annuity, unit-linked insurance products, variable insurance products, etc.
The company has strong linkages with its promoter, State Bank of India. It is the largest and oldest bank in India and has the presence in life insurance sector through SBI Life Insurance, making it a critical subsidiary for the bank. The established brand name and market reputation of SBI helps the company to build its own brand equity and assists in selling to customers of all segments. Main benefit of the promoter for the company is the reach to its 22,000 branches all over India. In FY21, the company earned a total premium of 50,200 crores compared to 40,600 crores in FY20. Its new business premium (NBP) was 20,000 crores in FY21 as compared to 10,000 crores in FY17.
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
Also Read:Gold & Silver Soar: Bullish Charts & Global Tensions Fuel Rally
Recommended Read: MCX Commodities Uncovered: The Must-Knows and Essential Insights [2024]
Chat with Analyst