Nifty Charges Higher: Bulls Flex Muscle with Another Green Close

Yesterday’s Profits

NIFTY 23 MAY 22550CE Rs 6250 (Per 10 Lot )
Momentum Pick IRFC Rs 33200 ( 200 Quanity)
Investment Pick RVNL RS 11200 ( 200 Quanity)
NCC CASH Rs 2400 ( 200 Quanity)
BPCL 30MAY24 640 CE Rs 6300 ( Per 2 Lot)
SENSEX 24 MAY 73900CE Rs 6000 ( Per 10 Lot)

Nifty Technical View

The Nifty 50 successfully maintained its position above 22,500 by the end of the trading day, forming a bullish candlestick pattern on the daily charts. The momentum indicator, the Relative Strength Index (RSI), showed a positive crossover on the daily charts, suggesting upward momentum. However, on the hourly charts, the RSI indicated a negative crossover, accompanied by a sharp increase in volatility. This suggests that the market might experience some consolidation in the upcoming sessions before potentially reaching a new record high.

Indian Vix

Volatility has been gradually increasing as the market nears the general election results, which are expected on June 4. This rise in volatility could make bullish investors more cautious at higher levels. The India VIX, also known as the fear index, increased by 6.26 percent to reach 21.81, marking its highest closing level since September 28, 2022.

Put Call Ratio:

The Nifty Put-Call ratio (PCR), which reflects market sentiment, decreased to 1.15 on May 21 from 1.24 in the previous session. Typically, a PCR above 0.7 or surpassing 1 suggests that traders are selling more Put options than Call options, indicating a bullish sentiment. Conversely, if the PCR falls below 0.7 or moves toward 0.5, it indicates higher selling in Calls than in Puts, reflecting a bearish mood in the market.

FII and DII Data

Foreign institutional investors (FIIs/FPIs) persisted in selling Indian equities. On May 21, they net sold shares amounting to Rs 1,874.54 crore. In contrast, domestic institutional investors (DIIs) net purchased equities worth Rs 3,548.97 crore during the same period.

Stocks in the news:

Arvind Fashions Ltd:
Arvind Fashions Ltd, a prominent player in the casual and denim market, reported a 39.09 percent increase in consolidated net profit, reaching Rs 39.67 crore for the March quarter. This is up from Rs 28.52 crore in the same period the previous year, as stated in their regulatory filing. The company had sold its Sephora business to Reliance Retail in the December quarter. Excluding this sale, Arvind Fashions’ profit from continuing operations rose to Rs 25 crore, marking a 72 percent year-on-year increase. Additionally, the company’s revenue from operations grew by 3.66 percent, reaching Rs 1,093.85 crore during the quarter, compared to Rs 1,055.20 crore a year earlier.

JK Tyre and Industries :

On May 21, JK Tyre and Industries reported a 56 percent increase in consolidated net profit for the fourth quarter, reaching Rs 169.33 crore, driven by sustained demand. This is up from Rs 108.38 crore in the same period the previous year. However, sequentially, the company’s profit declined by 23.35 percent from Rs 220.92 crore in the December quarter. The firm’s revenue from operations rose by 1.8 percent to Rs 3,698.45 crore, compared to Rs 3,632.47 crore a year ago, as stated in a stock exchange filing. Additionally, the company announced a final dividend of Rs 3.50 per equity share for FY24.

Nifty and Bank Nifty Support and Resistance level

Nifty :-
Resistance 22580, 22625, and 22695
Support 22440, 22390, and 22320

Resistance 48205, 48285, and 48410
Support 47950, 47870, and 47745

Index Future levels

Nifty Futures Buy near 22600.The suggested targets for this are 22,800 and 22,900, with a stop loss set at 22,380.

Bank Nifty future buy above 48250 index is expected to up side levels of 48550 and 48650 and level 47950 will act as a stop loss.

Fundamental Pick : CIPLA

Buy CIPLA at ₹1444, Target ₹1549, Stop Loss ₹1387

Cipla Ltd is an Indian multinational pharmaceutical and biotechnology company, founded in 1935 by Dr. K.A. Hamied. Headquartered in Mumbai, India, Cipla is one of the leading pharmaceutical companies globally. The company employs over 35,000 people and operates in more than 80 countries. Cipla has a diversified product portfolio that includes active pharmaceutical ingredients (API), generics, over-the-counter (OTC) products, biosimilars, and nutraceuticals. Cipla’s operations encompass the manufacturing, marketing, and distribution of pharmaceuticals, biotechnology, and consumer healthcare products. Its top products include drugs for respiratory conditions, anti-infectives, cardiovascular diseases, and oncology. Some of Cipla’s popular brands are Asthalin, Cipcal, Cifran, and Erythromycin. Additionally, Cipla manufactures nutraceuticals, herbal products, and OTC medicines.

Pharma major Cipla reported a consolidated net profit of ₹939 crore for the January to March period, marking a 79% year-on-year (YoY) increase compared to ₹525.6 crore in the same period last year. This profit slightly exceeded estimates, which were pegged at ₹923.5 crore. Revenue from operations for the quarter rose by 7.4% YoY to ₹6,163 crore, up from ₹5,793 crore in the corresponding quarter of the previous fiscal year. However, this revenue was 1.4% lower than the expected ₹6,250.9 crore. The company’s operating profit, or EBITDA (earnings before interest, tax, depreciation, and amortisation), increased by 12% YoY to ₹1,316 crore, with margins expanding by 80 basis points to 21.3%.Over the past three years, CIPLA’s stock has risen by 51.5%. Additionally, Mutual Funds have slightly increased their ownership from 16.63% to 16.79% in the March 2024 quarter, while Foreign Institutions have also raised their holdings from 25.68% to 25.77% during the same period.

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

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