Nifty Stumbles: Three Days of Red Raise Concerns After Recent Gains

Yesterday’s Pick

SHORT TERM PICK MARICO Rs 12600 ( 200 Quantity)
PNB 30MAY24 125 PE Rs 13600 ( Per 1 lot)
NIFTY 30MAY24 FUT SELL Rs 8750 ( Per 5 Lot )
NIFTY 09 MAY 22350PE Rs 10000 ( Per 10 Lot )

Nifty Technical View

The Nifty index kept forming lower highs, extending its downward trend after breaking yesterday’s Inside bar pattern. The momentum indicator RSI also stayed negative, suggesting more selling pressure ahead. It seems likely that the index could reach around 22,160, the lower boundary of the rising channel, which could act as the next support level. If this support is breached, the index may decline further towards 21,800. This level aligns with both the 200-day Exponential Moving Average (EMA) and the low point of the recent high rally.

Indian Vix

Investors should also be wary of increasing market volatility, which is making bullish traders uneasy, indicating potential challenges ahead. The India VIX, known as the fear index, rose by 2.5 percent to reach 17.01 levels on Tuesday. Over the past nine consecutive sessions, it has surged by nearly 67 percent.

FII and DII data

On May 7, according to provisional data from the NSE, Foreign Institutional Investors (FIIs) offloaded shares worth Rs 3,668.84 crore, while Domestic Institutional Investors (DIIs) injected Rs 2,304.50 crore into the market.

Put Call Ratio

The Nifty Put-Call Ratio (PCR), a gauge of market sentiment, declined to 0.78 on May 7, down from 0.85 levels in the previous session. A rising PCR, especially above 0.7 or surpassing 1, typically suggests that traders are selling more Put options than Call options, signaling a strengthening bullish sentiment in the market. Conversely, if the ratio falls below 0.7 or trends toward 0.5, it indicates that selling in Call options outweighs selling in Put options, reflecting a bearish sentiment in the market.

Stocks in the news:

Dixon Technologies:
Subsidiary, Dixon Electro Appliances has entered into an agreement with Nokia Solutions and Networks OY (Nokia) for development and manufacturing of telecom products.

Dr Reddy’s Laboratories:
The pharma company has recorded net profit at Rs 1,307 crore for quarter ended March FY24, growing 36.3 percent over a year-ago period, with other income rising 133 percent YoY to Rs 656 crore. Revenue from operations grew by 12.5 percent on-year to Rs 7,083 crore for the quarter, with global generics business rising 13 percent to Rs 6,119.1 crore.

Nifty and Bank Nifty Support and Resistance level

Nifty :-

Resistance 22,330, 22,500 and 22,620 levels.
Support 22,240, 22,160 and 22,080 levels.


Resistance 48,360, 49,010 and 49,320
Support 48,200, 48,000 and 47,700

Index Future levels

Nifty Futures Sell Below 22300.The suggested targets for this are 22,100 and 22,000, with a stop loss set at ,22520.

Bank Nifty future Sell Below 48280 index is expected to down side levels of 48000 and 47900 and level 48600 will act as a stop loss.

Fundamental Pick : Tech Mahindra Ltd

BUY 1295|TGT 1390| Stop Loss 1247

Tech Mahindra Ltd, founded in 1986, is an Indian multinational technology company and a subsidiary of the Mahindra Group. Based in Pune, India, it offers digital transformation, consulting, and business re-engineering services across more than 90 countries. Operating across various sectors, Tech Mahindra provides enterprise business solutions, digital transformation services, IT services, network services, and business process outsourcing. Its key offerings encompass enterprise mobility, cloud computing, analytics, and big data solutions..
Tech Mahindra company reported a significant decline of 41 percent in its consolidated net profit, amounting to ₹661 crore, compared to the same period the previous year. Additionally, its revenue from operations during the fourth quarter dropped by 6.2 percent to ₹12,871.3 crore, compared to the corresponding period last year. Tech Mahindra, India’s fifth-largest software company, faced these challenges amidst changing market conditions.
In Q4FY24, Tech Mahindra’s total headcount was 145,455, representing a decrease of 795 on a sequential basis. The company’s IT attrition rate on a last twelve months (LTM) basis stood at 10 percent, down by 30 basis points sequentially. Total utilization, including trainees, reached 86 percent in the March quarter. These figures provide insights into the company’s workforce dynamics and operational efficiency during the period.

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

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