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Nifty Dances at Record Highs: Pre-Election Bull Run or Correction Incoming?


Friday’s Pick

COROMANDEL 30MAY24 1250 CE 16800/- (Per 2Lot)
Short Term Pick BHARAT FORGE CASH 12600/-(200 Quantity)
MIDCPNIFTY 27 MAY 11450CE 18750/-( 10 Quantity)
FINNIFTY 28 MAY 21800CE 12000/- (10 Quanity )

Nifty Technical View

The Nifty 50 chart showed a small bullish candlestick with a long upper shadow, indicating that despite some selling pressure, buyers still had control. The sentiment remains optimistic, as the index has gained 2 percent in each of the past two weeks. Looking ahead, the 23,000 level is anticipated to be key in the index’s potential move towards the upper range of the Rising Channel, situated between 23,100 and 23,200. On the downside, the 22,800 level is expected to provide support.

Indian Vix

Volatility remained above the 21 mark for the fourth day in a row, and experts believe a significant decline is unlikely, particularly with the upcoming Lok Sabha election results on June 4. The India VIX ended at 21.71 on May 24, a 1.54 percent increase from 21.38. For the week, it rose by 5.77 percent, marking its fourth consecutive week of increases.

FII and DII Data

Foreign institutional investors (FIIs/FPIs) continued selling Indian equities, with net sales amounting to Rs 944.83 crore on May 23. Meanwhile, domestic institutional investors (DIIs) bought equities worth Rs 2,320.32 crore during the same period.

Put Call Ratio:

The Nifty Put-Call ratio (PCR), a gauge of market sentiment, dropped to 1.14 on May 24 from 1.37 the previous session. A rising PCR above 0.7, or exceeding 1, suggests that traders are selling more Put options than Call options, typically indicating a bullish sentiment. Conversely, if the PCR falls below 0.7 or approaches 0.5, it signals that Call option selling is outpacing Put option selling, reflecting a bearish sentiment in the market.

Nifty and Bank Nifty Support and Resistance level

Nifty
Resistance 23,010, 23,040, and 23,080
Support based 22,920, 22,890, and 22,845

BankNifty:
Resistance 49,045, 49,140, and 49,295
Support 48,735, 48,640, and 48,480

Index Future levels

Nifty Futures Sell near 23150.The suggested targets for this are 22,850 and 22,700, with a stop loss set at ,22,300.

Bank Nifty future sell below 48900 index is expected to down side levels of 48600 and 48400 and level 49250 will act as a stop loss.

Stocks In News

Tata Steel

The High Court of Calcutta has dismissed the writ petition filed by the company, with a liberty to the company, to approach the Joint Plant Committee. It will seek further legal remedies in the matter. On April 2, 2024, it had filed writ petition in the court in the matter of rejection of a representation made by the company in respect of waiver of loans availed from the Steel Development Fund (SDF). The loan outstanding (principal and interest) as of the last annual audited financial statements is Rs 2,751.17 crore. The entire amount of Rs 2,751.17 crore has already been accounted for as borrowings in the last audited financial statements.

Rail Vikas Nigam

The company has emerged as the lowest bidder (L1) for a project worth Rs 187.34 crore from Maharashtra Metro Rail Corporation (Nagpur Metro). The project involves the construction of six elevated metro stations in Phase 2.

Fundamental Pick : HDFC Bank

Buy at ₹1523, target ₹1573, stop loss ₹1477

HDFC Bank Ltd. is an Indian banking and financial services company based in Mumbai, Maharashtra. Established in August 1994, it is one of India’s largest private sector banks. The bank operates in four main business areas: Retail Banking, Wholesale Banking, Treasury, and Other Banking Operations. HDFC Bank provides a wide range of banking products and services, including deposits, loans, credit cards, debit cards, prepaid cards, NRI banking, insurance, investments, and other services. Some of its popular products are savings accounts, current accounts, fixed deposits, home loans, personal loans, car loans, credit cards, debit cards, prepaid cards, NRI banking, and insurance..

Private sector lender HDFC Bank reported a 37.1 percent increase in net profit for the quarter ended March 31, 2024, reaching Rs 16,512 crore, up from Rs 12,047 crore in the same quarter the previous year. Net interest income (interest earned minus interest expended) for the quarter rose by 24.5 percent to Rs 29,080 crore. The core net interest margin was 3.44 percent on total assets and 3.63 percent based on interest-earning assets. Operating expenses for the quarter included a staff ex-gratia provision of Rs 1,500 crore.

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

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