Yesterday’s Pick
WHIRLPOOL Cash Rs 19,400 ( Quant 200)
CIPLA Cash Rs 10,000 ( Quant 200)
Nifty Technical View
Nifty has formed a doji candle on the daily chart, and the RSI indicator is neutral at 59. Over the past three sessions, Nifty has been consolidating, with strong resistance at the 23,400 level. A clear breakout above this resistance would likely lead to further gains. For Nifty to enter a new bullish phase, it needs to decisively surpass this 23,400 barrier. If it does, the index could potentially reach 23,800 in the near term, as long as it stays above its key support level at 22,800.
Indian Vix
Volatility continues to decrease as the India VIX, also known as the fear index, closed 2.56 percent lower on an intraday basis, settling at 14.38.
FII And DII Data
Foreign institutional investors (FIIs/FPIs) purchased Indian stocks worth Rs 426.63 crore. Domestic institutional investors (DIIs) were also net buyers, acquiring Indian stocks valued at Rs 233.75 crore during the same period.
Put Call Ratio
The Nifty Put-Call Ratio (PCR), which gauges market sentiment, has moderately improved to 1.02. A PCR above 0.7 or exceeding 1 typically signals bullish sentiment, while a PCR below 0.7 or approaching 0.5 indicates a bearish sentiment.
Nifty Max Pain Point
The Nifty max pain point has shifted to the 23,200-23,150 strike price range. According to the max pain theory, this is the level where option sellers are likely to incur the least loss at expiry.
Stocks in the news
Lupin Limited
Lupin Limited has entered into a license and supply agreement with OLIC (Thailand) Limited, a subsidiary of the Japanese pharmaceutical company Fuji Pharma Co Ltd, to market Nextstellis (drospirenone and estetrol tablets) in Vietnam and the Philippines. Nextstellis is a novel combination medication used for preventing pregnancy.
Mankind Pharma
Mankind Pharma is reportedly planning to join a consortium to bid for Bharat Serums and Vaccines (BSV), which Advent International has put up for sale, according to sources.
Nifty and Bank Nifty Support and Resistance level
Nifty
Resistance 23,368, 23,470, and 23,650
Support based 23,185, 23,105, and 22,920
BankNifty
Resistance 50,138, 50,470, and 51,335
Support based 49,275, 48,745, and 47,885
Index Future levels
Nifty Futures Sell below 23300. The suggested targets for this are 23100 and 23,000, with a stop loss set at 23,550.
Bank Nifty future sell below 49,700 index is expected to see down side levels of 49300 and 49100 and level 50,000 will act as a stop loss.
Fundamental Pick : Coal India
Buy at ₹489, target ₹512, stop loss ₹476.
Coal India Limited (CIL) is a public sector undertaking under the Ministry of Coal, established in 1975. It is the largest coal-producing company in the world and one of the largest employers in India, with a workforce of over 330,000 employees. Headquartered in Kolkata, CIL operates across 81 mining areas in 8 Indian states. The company is involved in the production and sale of coal and coal products, as well as related services like exploration, development, and mining of coal and lignite reserves. CIL’s primary products include coal, coke, lignite, washed and beneficiated coal, tar, and other by-products. The company owns several well-known brands, such as Gondwana, Rajmahal, and Eastern Coalfields, which are recognized for their high-quality coal products. Additionally, CIL provides services like coal washing, transportation, and consultancy.
In May 2024, Coal India and its subsidiaries reported a 7.5% year-on-year increase in coal production, reaching 64.4 million tonnes, and a 7.2% rise in coal offtake. Bharat Coal Gasification & Chemicals has issued a tender for selecting an LSTK-2 contractor for their Coal to Ammonium Nitrate Project in Odisha. Despite a significant increase in net income to INR 374.02 billion for FY 2023-24, Coal India’s dividend coverage is a concern due to a high cash payout ratio of 1226% and forecasts of declining earnings by an average of 1.3% annually over the next three years.
The Ministry of Coal has set a production target of 1080 million tonnes for the fiscal year 2024-25, with Coal India expected to contribute the largest share. The ministry is focusing on improving coal quality, enforcing grade conformity parameters, advocating mechanized mining techniques, and digitizing coal mining operations to enhance efficiency and meet production targets while adhering to environmental safety standards.
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
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