Nifty Bank Slips Despite Early Gains: Bulls Take a breather

Nifty Bank Slips Despite Early Gains: Bulls Take a breather

Friday’s Pick
Infosys Cash Rs 12,200 (Quantity 200)
CENTURYPLY Rs 5,600 (Quantity 200)
Momentum Pick MGL Rs 12,400 (Quantity 200)
BANKNIFTY 31JUL24 FUT Rs 18,750 (Per Lot 5)
BANKNIFTY 03 JUL 52800PE Rs 10,875 (Per Lot 5)
Daily News Letter Bank Nifty future Rs 15,000 (Per Lot 5)
CEATLTD Cash Rs 49,600 (Quantity 200)
Momentum Pick RELIANCE Rs 20,400 (Quantity 200)

Nifty Technical View:

The Nifty 50 has been consistently reaching new highs and lows for four consecutive days, even though there was some profit-taking in the latest trading session. The Relative Strength Index (RSI), a momentum indicator, remains positive on both weekly and monthly charts, indicating an overall positive trend. The index is expected to stabilize in the near term, finding support around the 23,800-23,700 range. After this consolidation, it is likely to strengthen and move upwards towards the 24,200-24,500 range.
Indian Vix
Volatility stayed below the 15 mark and the 200-day Exponential Moving Average (EMA), which is reassuring for bullish investors. The India VIX, also known as the fear index, dropped by 2.47 percent to 13.8 on Friday. However, for the entire week, it increased by 4.72 percent.
Foreign institutional investors (FIIs/FPIs) sold Indian stocks worth Rs 23.09 crore, while domestic institutional investors (DIIs) bought Indian stocks amounting to Rs 6,658.31 crore during the same period.

Put Call Ratio:

The Nifty Put-Call ratio (PCR), which reflects market sentiment, decreased to 1.17 on June 28 from 1.49 in the previous session.
A rising PCR, or one that is higher than 0.7 or surpasses 1, suggests that traders are selling more Put options than Call options, typically indicating a strengthening bullish sentiment in the market. Conversely, if the PCR falls below 0.7 or approaches 0.5, it suggests that selling in Call options is higher than in Put options, indicating a bearish mood in the market.

Nifty and Bank Nifty Support and Resistance level:

Nifty :- Resistance 24,130, 24,175, and 24,245
Support based 23,985, 23,940, and 23,870
BankNifty: Resistance 52,840, 53,025, and 53,325
Support based 52,240, 52,050, and 51,750

Index Future levels

Nifty Futures sell below 24100. The suggested targets for this are 23900 and 23,600, with a stop loss set at 24,350.

Bank Nifty future sell near 52,500 index is expected to see down side levels of 52200 and 52000 and level 52,850 will act as a stop loss.

Stocks in the news:

Orchid Pharma Ltd : Chennai-based Orchid Pharma Ltd announced the launch of its new drug, Cefepime-Enmetazobactam, designed to treat complicated urinary tract infections (cUTI), hospital-acquired pneumonia (HAP), and ventilator-associated pneumonia (VAP). The company also mentioned in a press release that it has partnered with Cipla Ltd for the distribution of the drug.
Titan : On Saturday, Titan Company announced the launch of its jewellery brand Tanishq in Bangladesh as part of its international expansion plans. On Friday, the Tata Group-managed firm signed a joint venture agreement with Rhythm Group to make Tanishq available across the Bangladesh market, according to a joint statement. The joint venture will begin with the opening of a manufacturing facility in Narayanganj, Bangladesh.

Momentum Pick : TCS

Buy at ₹3970 | Target price: ₹4118 | Stop loss: ₹3820.
Tata Consultancy Services Ltd (TCS) is a global leader in IT consulting and outsourcing services. Founded in 1968, TCS has expanded to offer comprehensive IT services, digital solutions, and business solutions worldwide. Headquartered in Mumbai, India, TCS employs over 446,000 people across 46 countries.
Fundamentally speaking Mutual funds have increased their holdings from 3.51% to 4.05% in the March 2024 quarter. The company’s net profit has risen for the last two quarters, from ₹11.05K crore to ₹12.43K crore, reflecting an average quarterly increase of 11.1%. Additionally, revenue has been on the rise for the past three quarters, increasing from ₹60.69K crore to ₹62.39K crore, with an average quarterly growth of 1.4%.
Technically speaking TCS has been consistently making higher highs and higher lows over the past few weeks. The stock rebounded from the 21-day Exponential Moving Average (EMA) and broke through its nearby resistance levels with above-average trading volumes. Additionally, momentum indicators such as the 14-day Relative Strength Index are also trending upwards, suggesting that the uptrend is likely to continue.

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

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