Nifty Sees Three Consecutive Red Closures:Is the Trend Changing? or A Step Back Before the Boom?

Yestaerday’s Profit

BANKNIFTY 29 MAY 49200PE 21750/- ( 5 LOT )
NIFTY 30 MAY 22850PE 6875/- ( 5 LOT )
Investment Pick Jublient Food CASH 4000/- (4 % Return on 200 Quantity )

Nifty Technical View

The Nifty 50 index has shown a bearish candlestick pattern on the daily charts, featuring an upper shadow. Recently, the market broke through the support level around 22,800, which was significant because it aligned with the previous record high from May 3 and the 23.60 percent Fibonacci retracement level calculated from this month’s low to the record high. This break occurred after a gap-down opening, and the index has closed lower for four consecutive days. Looking ahead, the next support level is around 22,600, which matches the 38.2 percent Fibonacci retracement level. Below that, further support is around 22,500, aligning with the 20-day Simple Moving Average (SMA) or the middle of the Bollinger Band. As long as the Nifty 50 maintains these support levels, there is a high chance of a rebound in the coming sessions. The key resistance level to watch for any upward movement is at 23,000.

Indian Vix

Volatility remained above the 24 mark for another session on Wednesday and is expected to stay elevated in the upcoming sessions. The market is unlikely to stabilize until it undergoes a significant decline. The India VIX, which measures market volatility, slightly decreased by 0.08 percent, moving from 24.20 to 24.18.


On May 29, foreign institutional investors (FIIs/FPIs) were net sellers of Indian equities, with a total net sale amounting to Rs 5,841.84 crore. In contrast, domestic institutional investors (DIIs) were net buyers, purchasing equities worth Rs 5,233.79 crore during the same period.

Put Call Ratio

On May 29, the Nifty Put-Call ratio (PCR), which serves as an indicator of market sentiment, declined to 0.79 from the previous session’s level of 0.94. Typically, a rising PCR, especially when it is higher than 0.7 or surpasses 1, suggests that traders are selling more Put options than Call options, indicating a bullish sentiment in the market. Conversely, when the PCR falls below 0.7 or moves towards 0.5, it indicates that selling in Call options is higher than in Put options, reflecting a bearish market sentiment. The recent decline in the PCR to 0.79 suggests a shift towards a more bearish mood in the market.

Stocks in the news

Tata Steel:
On Wednesday, May 29, Tata Steel announced its results for the January-March quarter of the fiscal year 2023-24 (Q4FY24). The company reported a significant drop of 64.8 percent in consolidated net profit, which fell to ₹554.6 crore from ₹1,566 crore in the same period last year. Additionally, Tata Steel’s revenue from operations decreased by 6.8 percent, falling to ₹58,687.3 crore in the March quarter compared to ₹62,961 crore in the corresponding period of the previous year. This performance reflects a challenging period for India’s second-largest steelmaker by market capitalization.-quarter) to Rs 1,130.8 crore.

Tata Steel Ltd :
Tata Steel Ltd announced plans to invest ₹17,408 crore ($2.11 billion) in its Singapore unit, T Steel Holdings Pte Ltd. This investment aims to fund the restructuring of its struggling UK business and to repay the debt of its offshore entities. Additionally, Tata Steel will write off $565 million of existing debt owed by T Steel, converting this debt into equity shares. These details were disclosed in regulatory filings on Wednesday.

Nifty and Bank Nifty Support and Resistance level


Resistance 22,790, 22,825, and 22,880
Support based 22,685, 22,650, and 22,560


Resistance 48,880, 49,025, and 49,265
Support 48,405, 48,260, and 48,020

Index Future levels

Nifty Futures Sell below 22750. The suggested targets for this are 22,250 and 22,100, with a stop loss set at ,22,650.

Bank Nifty future buy above 48100 index is expected to down side levels of 47800 and 47600 and level 48450 will act as a stop loss.

Fundamental Pick : SAREGAMA

Buy at ₹ 494, target ₹546, stop loss ₹469.

Saregama India Ltd, established in 1901, is a leading and highly respected music and entertainment company in India. The company operates across various sectors including music, television, digital, and mobile entertainment. As one of the oldest music labels in the country, Saregama is home to several prominent music labels like HMV, Saregama, Yash Raj Films, and EMI. Saregama’s product portfolio includes a diverse range of offerings such as music albums, movie soundtracks, devotional albums, and audiobooks. Additionally, the company owns and operates several digital music streaming services, including Saregama Carvaan, Saregama Music, Yoodlee Films, and the Saregama Music Store. These services help the company maintain a significant presence in the digital entertainment space.

Saregama India Ltd reported a significant financial performance in Q4 2023-2024. The company’s revenue increased by 27.2% year-over-year, reaching ₹281.03 crore. On a quarterly basis, revenue grew by 28.2% over the last three months. Additionally, Saregama India Ltd’s net profit rose by 23.06% year-over-year, amounting to ₹53.80 crore. On a quarterly growth basis, net profit saw a 3.03% increase over the past three months.

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

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