Nifty Finishes Green for Three Consecutive Sessions

Yesterday’s Pick

NIFTY 13 JUNE 22950CE RS 18,125 ( PER 5 LOT )

Nifty Technical View

The Nifty 50 index showed strong upward movement on the daily charts, creating a bullish candlestick pattern characterized by both higher highs and higher lows. This rise was accompanied by trading volumes that were above the average. Additionally, momentum indicators such as the RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) also signaled a positive trend by crossing over to the upside.
Looking ahead, the index has a key support level around 22,800 points. If it manages to break decisively above its recent high, it could potentially reach the next target of 23,800 points in the coming days.

Indian Vix

Volatility in the market significantly decreased after reaching a two-year high. It dropped from 31.71 on June 4 to 16.88 on June 7, following the conclusion of the general elections. This decrease in volatility has put the bulls in a favorable position. On Friday, the India VIX, which is known as the fear index, increased slightly by 0.49 percent to 16.88.

FII And DII Data

Foreign institutional investors (FIIs/FPIs) purchased Indian stocks worth Rs 4,391.02 crore. In contrast, domestic institutional investors (DIIs) were net sellers, offloading Indian stocks valued at Rs 1,289.75 crore during the same period.

Put Call Ratio:

The Nifty Put-Call ratio (PCR), a gauge of market sentiment, rose to 1.15 on June 7 from 1.03 in the previous session. A rising PCR, especially when it exceeds 0.7 or surpasses 1, indicates that traders are selling more Put options than Call options, which generally signals a strengthening bullish sentiment in the market. Conversely, if the PCR falls below 0.7 or moves towards 0.5, it suggests that selling in Call options is higher than in Put options, reflecting a bearish market mood.

Stocks in the news

RailTel Corporation of India:
RailTel Corporation of India, a state-run company, has received a substantial work order valued at up to Rs 81.6 crore from National Informatics Centre Services Incorporated (NICSI) for ICT (Information and Communication Technology) infrastructure. According to a regulatory filing, the scope of the order encompasses the supply, installation, configuration, commissioning, and integration of the infrastructure, along with responsibilities for its operation and maintenance.

Mphasis Ltd :
Blackstone is set to sell a 10.6 percent stake in IT company Mphasis Ltd through block deals, with a base price of Rs 2,350 per share, according to a report by CNBC TV-18 citing sources. This base price represents a 5 percent discount from the last closing price.

Nifty and Bank Nifty Support and Resistance level

Resistance 23,335, 23,460, and 23,665
Support based 22,930, 22,805, and 22,600

Resistance 49,940, 50,140, and 50,470
Support based 49,280, 49,075, and 48,745

Index Future levels

Nifty Futures Sell below 23300. The suggested targets for this are 23200 and 23,000, with a stop loss set at 23,450.

Bank Nifty future buy above 50,100 index is expected to see up side levels of 50400 and 50600 and level 49,800 will act as a stop loss.

Fundamental Pick : WIPRO

Buy at ₹ 485 , target ₹546, stop loss ₹453.

Founded in 1945 and headquartered in Bengaluru, India, Wipro Ltd is a prominent global company in information technology, consulting, and business process services, employing over 160,000 people worldwide. Wipro’s operations are divided into three key areas: IT Services, which encompasses consulting, systems integration, and application development and maintenance; Business Process Services, which includes analytics, automation, and customer service; and Products & Platforms, which focuses on offerings in cloud computing, analytics, artificial intelligence, and the Internet of Things (IoT).

Wipro Ltd’s stock has broken out of a symmetric triangle pattern, targeting a price of 546. This breakout is supported by strong momentum, as evidenced by Friday’s trading volume being nearly six times the 10-day average. To manage risk, a strict stop loss is set at 470. Despite securing a $500 million contract with a leading US telecom service provider, brokerages remain bearish on Wipro due to its near-term growth lagging behind competitors. Nevertheless, Wipro’s shares rose by 5.31% following the deal announcement. The company is optimistic about growth in FY25, driven by increased client investments in AI and digital transformation, although it acknowledges current challenges, including a cautious approach to technology investments amid economic uncertainty.

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

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