Nifty Stages Comeback After Short-Term Pullback

Yesterday’s Profit

LICHSGFIN 30MAY24 620 PE Rs 6600 ( Per 1 Lot )
SENSEX 17MAY24 72900 CE Rs 12000 ( Per 10 Lot )
Daily News Letter Nifty Futures Buy Rs 12500(Per 5 Lot)

Nifty Technical view

The Nifty index displayed a bullish candlestick pattern on its daily chart. Several factors contribute to this positive momentum, including the formation of higher highs and higher lows, the defense of a rising support trendline, and the upward trend in the momentum indicator RSI. These factors suggest that the upward movement is expected to persist until reaching the levels of 22,308 to 22,423, which represent the 50 percent and 61.82 percent Fibonacci retracement levels from the previous decline. On the downside, the range of 22,040 to 22,000 is seen as a critical support level from a short-term perspective.

Indian Vix

Market participants should monitor the India VIX, also known as the fear index, as it has been holding above the 20 mark. Despite a slight correction to 20.20 levels on Tuesday from 20.6 levels, it had surged by 102 percent over the preceding 13 consecutive trading sessions.

Put Call Ratio

On May 14, the Nifty Put-Call ratio (PCR), a gauge of market sentiment, climbed to 1.02 from the previous session’s level of 0.97. When the PCR exceeds 0.7 or surpasses 1, it suggests that traders are selling more Put options than Call options. This typically indicates a strengthening bullish sentiment in the market. Conversely, if the ratio drops below 0.7 or trends towards 0.5, it implies that selling in Call options outweighs selling in Put options, signaling a bearish sentiment in the market.

Stocks under F&O ban on NSE

The NSE has added Birlasoft to the F&O ban list for May 15, while retaining Balrampur Chini Mills, Canara Bank, GMR Airports Infrastructure, Hindustan Copper, Vodafone Idea, Piramal Enterprises, SAIL, and Zee Entertainment Enterprises to the said list. Punjab National Bank was removed from the said list.

Stocks in the news
PVR Inox :
PVR Inox, the multiplex chain operator, reported a consolidated net loss of ₹130 crore in the fourth quarter of FY24, down from ₹333 crore reported in the year-ago period. The company has posted a net profit of ₹13 crore in Q3FY24. PVR Inox’s revenue from operations in Q4FY24 rose 10% to ₹1,256 crore from ₹1,143 crore, YoY. For the full year FY24, the company’s loss narrowed to ₹32 crore from ₹335 crore in FY23, while its revenue for the period increased to ₹6,107 crore from ₹3,751 crore in the previous year.

Devyani International :
Devyani International, on Tuesday, May 14, reported a loss of ₹49 crore for the March quarter of the last financial year (Q4FY24). The company reported a one-time loss of ₹42.3 crore. The company had reported a profit of ₹60 crore in the same quarter last year, while in the December quarter of FY24, the company’s profit was ₹5 crore. Revenue from operations for the quarter under review came at ₹1,047.1 crore, up 38.7 per cent against the revenue of ₹755 crore in Q4FY23, supported by Thailand acquisition and store additions. Sequentially, the company’s consolidated revenue grew 24.2 per cent as in Q3FY24, the company’s revenue stood at ₹843.1 crore.

Nifty and Bank Nifty Support and Resistance level

Nifty :-
Resistance 22,265, 22,310 and 22,380 levels.
Support 22,120, 22,070 and 22,000 levels.
Max Pain = 22200, PCR= 1.03

Resistance 47,930, 48,000 and 48,130
Support 47,680, 47,600 and 47,480
Max Pain = 47800, PCR= 0.80

Index Future levels
Nifty Futures Buy above 22350.The suggested targets for this are 22,550 and 22,650, with a stop loss set at ,22,000

Bank Nifty future buy above 48300 index is expected to up side levels of 48600 and 48700 and level 48000 will act as a stop loss.

Fundamental Pick : BASF

Buy ₹4620, Target ₹5159, Stop loss ₹4379

BASF India Limited stands out as a prominent multinational player within the Indian chemical industry, offering a diverse range of products spanning crop protection, performance chemicals, dispersions and pigments, care chemicals, nutrition and health products, intermediates, petrochemicals, monomers, coatings, construction chemicals, performance materials, and process catalysts. Originally established as R A Cole Pvt Ltd in 1943, the company has continually expanded its product lineup and established additional facilities to enhance its competitive edge and facilitate accelerated growth. Throughout its journey, BASF India Limited has strategically divested certain segments, such as textile chemicals, paper wet-end and water chemicals, and automotive coatings, while also transferring its construction chemical and pigments businesses to affiliated subsidiaries. Concurrently, the company has cultivated a robust network of research and development capabilities, enabling the timely launch of new products and effective response to customer needs. In the fiscal year 2021-22, BASF India Limited made significant investments, including the establishment of a technical services laboratory and the implementation of improvements such as piping reconfiguration and the installation of efficient compressors. Additionally, it divested its Kaolin minerals business in the USA and its attapulgite business in Florida. Moreover, the company approved the removal request of Master Builders Solutions Deutschland GmbH from the list of promoter group shareholders, further refining its corporate structure and operations.

BASF India Ltd reported a significant year-on-year increase of 96 percent in standalone net profit, reaching Rs 161.5 crore for the fourth quarter ending March 31, 2024. This marks a substantial rise compared to the net profit of Rs 82.3 crore On a consolidated basis, the company’s profit also exhibited growth, increasing by 15 percent quarter-on-quarter from Rs 140 crore in the December quarter. In terms of revenue, BASF India’s operations saw a moderate uptick, with a 2.4 percent increase to Rs 3,328.1 crore compared to Rs 3,249.9 crore in the corresponding period of the previous fiscal year. Operating performance reflected a notable improvement as well, with EBITDA soaring by 88 percent to Rs 245 crore during the fourth quarter of the fiscal year, compared to Rs 130 crore in the same period of the previous fiscal. The EBITDA margin for the reporting quarter stood at 7.31 percent

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

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