Nifty & Bank Nifty Rebound: Time to Re-enter the Market?

Yesterday’s Pick:

FINNIFTY 14MAY24 21100 CE Rs 10000 ( Per 5 Lot )

Nifty Technical View:

Based on the Bullish Hammer candlestick pattern seen on the daily charts, indicating a potential reversal from a downtrend, along with a strong intraday trend reversal in the last session, it suggests that the Nifty 50 index might encounter resistance around the 22,250-22,350 levels. However, if the index manages to confidently close above 22,350, it could signal further upward movement towards the 22,500-22,600 range. Support levels are anticipated around 22,000-21,900.

Indian Vix

The India VIX, known as the fear gauge, surged to 20.6 levels on May 13, more than doubling from its level of 10.2 on April 23. This significant increase suggests that the prevailing trend is still favorable for bears, indicating a higher level of market volatility and uncertainty. Bulls, or buyers, may find themselves in an uneasy position given this heightened volatility.

FII and DII data

According to provisional data from the NSE, Foreign Institutional Investors (FIIs) sold a net of Rs 4,498.92 crore worth of shares on May 13. In contrast, Domestic Institutional Investors (DIIs) injected Rs 3,562.75 crore worth of shares during the same period. This indicates a significant divergence in investor sentiment, with foreign investors offloading shares while domestic investors are actively buying.

Put Call Ratio:

On May 13, the Nifty Put-Call ratio (PCR), a measure reflecting market sentiment, rose to 0.97 from its previous session level of 0.91. When the PCR exceeds 0.7 or climbs above 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 Call options outweighs selling in Put options, reflecting a bearish sentiment prevailing in the market.

Nifty and Bank Nifty Support and Resistance level:

Nifty :- Resistance   22,140, 22,210 and 22,330 levels.

             Support      21,900, 22,830 and  22,690 levels.

BankNifty: Resistance  47,850, 48,060 and 48,385

                   Support     47,200, 47,000 and 46,670

Index Future levels

Nifty Futures Buy above  22250.The suggested targets for this are 22,450 and 22,650, with a stop loss set at ,22,000

Bank Nifty future buy near 48100 index is expected to up side levels of 48400 and 48600 and level 47800 will act as a stop loss.

Stocks in the news:

Cochin Shipyard: The company has secured a substantial order, estimated to be in the range of Rs 500-1,000 crore, from a European client. This order pertains to the design and construction of a hybrid service operation vessel (Hybrid SOV), with the possibility of two additional vessels under the same agreement.

Rail Vikas Nigam: The company has been awarded a Letter of Acceptance from the Southern Railway for the implementation of an automatic block signaling system. This system will be installed from Jolarpettai junction to Erode junction within the Salem division of the Southern Railway. The order is valued at Rs 239.1 crore and is anticipated to be completed within a timeframe of 12 months.

 Fundamental Pick : Coforge

Buy  ₹4545, target ₹4710, stop loss ₹4430

Coforge Limited, formerly known as NIIT Technologies Limited, is a prominent provider of Information Technology solutions. Established in 1992, the company offers a wide array of services including Application Development and Maintenance, Managed Services, Cloud Computing, and Business Process Outsourcing across diverse industry sectors. Coforge has demonstrated its commitment to excellence by maintaining ISO 27001 standards and achieving SEI CMMI Level 5 Version 1.2 certification. Over the years, the company has expanded its global footprint with development centers spanning from New Delhi to London and Singapore. In 2002, NIIT Technologies underwent restructuring, becoming an independent entity. Shortly thereafter, it ventured into the Managed Services arena, broadening its service offerings. Coforge has been recognized for its innovation and excellence, notably in 2008 when it introduced its distinctive Fleet Management System. This initiative garnered prestigious accolades, including the ‘Banking and Finance ICT Innovation Award for Belgium/Luxembourg,’ underscoring the company’s commitment to pioneering solutions in the IT sector.

In the three months ending on March 31, consolidated revenue for Coforge Limited increased by 8.7% year-on-year, Net profit saw a substantial surge, rising by 95% to 2.24 billion rupees during the same three-month period. One notable highlight was the significant increase in fresh order intake, which more than doubled to $774 million from $301 million compared to the previous year’s figures for the January-March period. This boost in orders was primarily attributed to a $400 million deal that was signed during the quarter, indicating strong growth prospects for Coforge.

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

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