Nifty at Crossroads: Reversal or Further Downturn?

Yesterday’s Profit’s

TECHM 30MAY24 1300 CE Rs 8200 ( Per 2 lot)
NIFTY 09 MAY 22300CE Rs 9,375 ( Per 5 Lot )
BANKEX 13 MAY 54700CE Rs 4500 ( Per 5Lot )

Nifty Technical View

The recent movement of the Nifty is indicating a potential rebound in the market. The formation of a small bullish candlestick pattern with minor upper and lower shadows on the daily charts, resembling a high wave pattern, suggests a bullish sentiment. Additionally, the Nifty has shown resilience by consistently staying above the crucial support level of 22,150 points, which marks the lower boundary of a rising channel. Despite nearing this level, the index bounced back and closed above its 50-day Exponential Moving Average, positioned at 22,243 points.

Based on these observations, it’s anticipated that the Nifty will likely consolidate above the 22,150 support level in the short term. However, it may encounter resistance around the 22,400-22,500 range in the coming days. It’s important to note that if the support level at 22,150 is breached, there could be a further decline towards the 22,000 mark. Overall, the market is exhibiting signs of resilience and potential for a rebound, but it’s essential to monitor the support and resistance levels closely for further market direction.

Indian Vix
The India VIX, also known as the fear index, saw a 0.42 percent increase to reach 17.08, up from its previous level of 17.01. This marks the 10th consecutive day of an upward trend. Over this 10-day period, the VIX surged by almost 67 percent, putting pressure on bullish sentiments and leaving them in an uneasy position.

FII and DII data
On May 8, according to provisional data from the NSE, Foreign Institutional Investors (FIIs) net sold shares worth Rs 6,669.10 crore, whereas Domestic Institutional Investors (DIIs) injected Rs 5,928.81 crore into the market.

Put Call Ratio
On May 8, the Nifty Put-Call ratio (PCR), a gauge of market sentiment, decreased to 0.77 from the previous session’s level of 0.78. When the PCR rises above 0.7 or exceeds 1, it suggests that traders are selling more Put options than Call options, typically signaling a strengthening bullish sentiment in the market. Conversely, if the ratio falls below 0.7 or approaches 0.5, it indicates that selling in Calls outweighs selling in Puts, reflecting a bearish sentiment in the market.

Stocks in the news:
HDFC Life Insurance Company:
Insurance Regulatory and Development Authority of India (IRDAI) has given its approval for the appointment of Keki Mistry as chairman of the board of the company.

Larsen and Toubro:
The infrastructure major has recorded net profit at Rs 4,396 crore for quarter ended March FY24, growing 10 percent over the year-ago period with healthy topline, but operating margin was weak. Revenue from operations increased by 15 percent on-year to Rs 67,079 crore for the quarter.

Stocks under F&O ban

Additions to F&O Ban List: Canara Bank and Piramal Enterprises have been newly added to the Futures and Options (F&O) ban list by the National Stock Exchange (NSE) for May 9.

Retention on F&O Ban List: Aditya Birla Fashion & Retail, Balrampur Chini Mills, Biocon, GMR Airports Infrastructure, Vodafone Idea, Punjab National Bank, SAIL, and Zee Entertainment Enterprises remain on the F&O ban list.

This means that trading in futures and options contracts of Canara Bank and Piramal Enterprises is restricted for the day, while the mentioned stocks continue to face trading restrictions as per the NSE guidelines.

Nifty and Bank Nifty Support and Resistance level

Nifty :-
Resistance 22320, 22400 and 22,470 levels.
Support 22220, 22170 and 22,100 levels.

Resistance 48,050, 48,260 and 48,400
Support 47,890, 47,800 and 47,660

Index Future levels

Nifty Futures Buy above 22400.The suggested targets for this are 22,600 and 22,700, with a stop loss set at ,22,200

Bank Nifty future buy above 49400 index is expected to up side levels of 49700 and 49800 and level 49100 will act as a stop loss.

Fundamental Pick : BHARATFORG

BUY 1480|TGT 1590| Stop Loss 1421

Bharat Forge Ltd is an Indian multinational company established in 1961, with its headquarters in Pune, India. The company operates across various sectors including automotive, power, oil and gas, construction and mining, railway, marine, aerospace, and defense. Renowned as the world’s second-largest forgings manufacturer, Bharat Forge specializes in producing high-performance components for a diverse range of industries such as automotive, power, oil and gas, construction and mining, railway, marine, aerospace, and defense. Among its notable products are crankshafts, camshafts, suspension components, transmission components, engine components, and chassis components.
Bharat Forge Ltd reported impressive financial results for the quarter ending March 31, 2024. The company saw a remarkable 78 percent year-on-year increase in its consolidated net profit, reaching ₹227 crore compared to ₹127.74 crore reported in the same period the previous year. For the entire financial year, the profit after tax (PAT) surged to ₹910 crore, marking a significant 79 percent increase from ₹508 crore reported in the corresponding period of the previous year.

Furthermore, the company’s consolidated revenue from operations amounted to ₹4,164 crore, indicating a 15 percent year-on-year increase compared to ₹3,629 crore recorded in the corresponding period of the previous year. Over the entire financial year, the revenue stood at ₹15,682 crore, as opposed to ₹12,910 crore in the previous fiscal year, representing a substantial 21 percent year-on-year surge. These results reflect the company’s strong performance and growth trajectory across various sectors it operates in.

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

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