Nifty & Bank Nifty Stuck in Neutral: Breakout or Breakdown Next?
Yesterday’s Pick
NIFTY 04JUL24 24100 C Rs 4,375 (Per Lot 5)
Short Term Pick DEEPAKNTR Rs 57,600 (Quantity 200)
Weekly Top Pick MGL Rs 40,000 (Quantity 200)
Nifty Technical View:
The market experienced a period of sideways movement after reaching a new peak and ended the day slightly down. On the daily charts, the Nifty 50 formed a bearish candlestick pattern, even though there was a pattern of higher highs and higher lows. The momentum indicators, RSI and MACD, remained positive on the higher timeframes. The index is expected to continue consolidating as long as it stays below 24,200 at the close, with immediate support at 24,000. If it manages to close and remain above 24,200, then the next level to watch is 24,500.
Indian Vix
Volatility remained below both the 10-day and 200-day Exponential Moving Averages (EMA), which is a positive sign for bullish investors. Additionally, the India VIX, which measures market fear, decreased by 1.37 percent, dropping from 13.83 to 13.64.
FII/DII
Foreign institutional investors (FIIs/FPIs) sold Indian stocks amounting to Rs 2,000.12 crore, while domestic institutional investors (DIIs) bought Indian stocks worth Rs 648.25 crore during the same period.
Put Call Ratio:
The Nifty Put-Call ratio (PCR), which reflects market sentiment, dropped to 1.15 on July 2 from 1.21 in the previous session. An increasing PCR, or a ratio higher than 0.7 and exceeding 1, suggests that traders are selling more Put options than Call options, typically indicating a bullish sentiment in the market. Conversely, if the ratio falls below 0.7 or approaches 0.5, it implies higher selling in Calls compared to Puts, signaling a bearish market mood.
Nifty and Bank Nifty Support and Resistance level:
Nifty :- Resistance 24,210, 24,250, and 24,320
Support based 24,070, 24,030, and 23,960
BankNifty: Resistance 52,650, 52,845, and 53,165
Support based 52,015, 51,815, and 51,500
Index Future levels
Nifty Futures buy near 24200. The suggested targets for this are 24,400 and 24,600, with a stop loss set at 23,950.
Bank Nifty future Sell below 52,400 index is expected to see down side levels of 52000 and 51,800 and level 52,700 will act as a stop loss.
Stocks in the news:
Kotak Mahindra Bank: A SEBI investigation document has revealed that a foreign portfolio investor from the Kotak group, specifically K India Opportunities Fund Class F, traded in the futures of Adani Enterprises shortly before the publication of a report on the Adani group by Hindenburg Research. Kotak Mahindra International Ltd, a subsidiary of Kotak Mahindra Bank, acted as the investment manager for these trades.
Capgemini : Capgemini plans to invest ₹1,000 crore over the next three years to establish a facility with a capacity of 5,000 seats in Chennai. The facility will cover nearly 600,000 square feet and is expected to become a key location for top-tier talent in southern India. According to a release, it will support Capgemini’s diverse specialist teams, including those in financial services, engineering, digital, cloud, and AI.
Momentum Pick : JYOTHYLAB
Buy at ₹478 | Target price: ₹535 | Stop loss: ₹438.
Jyothy Labs Ltd, established in 1983, is a leading Indian FMCG company with operations in home care, fabric care, personal care, and agri-care. Its top products include fabric whiteners, dish-washing liquids, liquid detergents, mosquito repellents, and insecticides. The company’s popular brands include Ujala, known for fabric whitening; Henko, praised for its stain-removal properties; Margo, a skincare brand with soaps, lotions, and creams; Pril, recognized for superior dish-washing; Mr. White, known for effective fabric whitening; and Maxo and Exo, leading insecticide brands for protection against pests. Maxo Plus offers enhanced fabric whitening power.
Jyothy Labs Ltd experienced a significant surge in trading volumes, with the stock price rising by over 11% on both NSE and BSE. In Q4 2023-2024, the company’s revenue increased by 8.08% year-on-year to ₹672.96 crore. Net profit saw a substantial jump of 32.41% to ₹78.16 crore, and the net profit margin improved by 22.51% to 11.61% compared to the same period last year.
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
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