Nifty Sustains Bull Run: What to Expect After the Breakout

Yesterday’s Profit’s

Swing BALKRISIND CASH Rs 20000 ( 200 Quanity)
Momentum Pick POLICYBZR CASH RS 8800 ( 200 Quanity)
BANKNIFTY 22 MAY 47800PE Rs 32250 ( Per 10 Lot)

Yesterday’s News letter Nifty Futures 22250 to 22450 Rs 25000 (Per 5 lot)

Nifty Technical View

The Nifty 50 is expected to reach levels between 22,500 and 22,600, assuming 22,300 serves as a support in the upcoming sessions. Recently, the Nifty 50 has been making higher highs, supported by above-average trading volumes during the weekly Futures & Options (F&O) expiry session. It is now trading above all key moving averages, and the Relative Strength Index (RSI), currently at 53, has shown a positive crossover. These factors all suggest a positive outlook for the index.

Indian Vix
Volatility has decreased slightly but remains high at a level of 20. Experts believe it needs to drop further to around 15-16 for the market to be more favorable for bulls. The India VIX, also known as the fear index, fell by 1.36 percent, moving from 20.27 to 20.

FII and DII Data
Foreign institutional investors (FIIs/FPIs) persisted in selling Indian equities. On May 17, they net sold shares amounting to Rs 776.49 crore. In contrast, domestic institutional investors (DIIs) net purchased equities worth Rs 2,127.81 crore during the same period.

Put Call Ratio
The Nifty Put-Call ratio (PCR), a measure of market sentiment, rose to 1.19 on May 16, up from 0.92 in the previous session. A higher PCR, especially above 0.7 or exceeding 1, suggests that traders are selling more Put options than Call options, which generally signals a strengthening bullish sentiment in the market. Conversely, if the ratio falls below 0.7 or towards 0.5, it indicates more selling of Call options than Put options, reflecting a bearish sentiment in the market.

Stocks in the news

Vodafone Idea’s losses widened to ₹7,666 crore for the quarter ended March 2024, from ₹6,424 crore the year before, while revenues improved marginally to ₹10,639 crore, on the back of improving subscriber mix, 4G subscriber additions and change in entry level plan. Average revenue per user (Arpu), a key metric of profitability, improved to ₹146, up 7.6% on-year primarily aided by change in entry level plan and subscriber upgrades.

Biocon released its January-March quarter results for fiscal 2023-24 (Q4FY24) on Thursday, May 16, reporting a decline of 57 per cent in consolidated net profit at ₹135.5 crore, compared to ₹313.2 crore in the corresponding period last year. The pharma major’s revenue from operations in the fourth quarter of FY24 stood at ₹3,917 crore, registering a rise of four per cent, compared to ₹3,774 crore in the year-ago period. At the operating level, the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) dropped 8.2 per cent to ₹916 crore in the March quarter compared to ₹997 crore in the same quarter last year. Margin dropped by 300 basis points (bps) to 23.4 per cent compared to 26.4 per cent in the year-ago period.

Nifty and Bank Nifty Support and Resistance level

Nifty :
Resistance 22440, 22530 and 22675
Support based 22155, 22065 and 21920
Max Pain: 22300, PCR: 1.19

Resistance 48060, 48230 and 48500
Support 47520, 47350 and 47080
Max Pain: 47900, PCR: 0.88

Index Future levels
Nifty Futures Buy near 22500.The suggested targets for this are 22,700 and 22,800, with a stop loss set
at 22,300.

Bank Nifty future buy above 48250 index is expected to up side levels of 48550 and 48650 and level 47950 will act as a stop loss.

Fundamental Pick : Tata Consumer

Tata Consumer Products Ltd, a leading consumer packaged goods company in India and a part of the Tata Group, was incorporated in 1989. The company operates in four business segments: Beverages, Staples, Packaged Foods, and Personal Care.

Tata Consumer Products Ltd is renowned for its popular brands, including Tata Salt, Tata Tea, Tetley, Eight O’Clock Coffee, Tata Sampann, Tata Starbucks, and Himalayan. Tata Salt is its flagship product and the most widely used iodized salt brand in India. Tata Tea is the second most popular product, offering a variety of blends such as Gold, Premium, and Green Tea. Additionally, Tata Sampann offers a premium range of pulses and spices, while Eight O’Clock Coffee provides premium whole bean and ground coffee options.
Tata Consumer announced its January-March quarter results for fiscal 2023-24 (Q4FY24). The company’s net profit dropped by 22.5 percent to ₹267.7 crore, compared to ₹345.6 crore in the same period last year. However, its revenue from operations increased by 8.5 percent to ₹3,927 crore, up from ₹3,619 crore in the previous year. EBITDA for the March quarter was ₹629.6 crore, showing a growth of 23 percent compared to ₹511.7 crore in the same period last year. The EBIT margin rose to 16 percent, an increase of 160 basis points from the previous year’s 14 percent. The group net profit before exceptional items increased by 46 percent to ₹427 crore, driven by strong operating performance and one-time tax credits during the quarter.

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

Also Read:Economic Data: US Unemployment Claims, EU Economic forecast in focus today Nifty Faces Breakout or Breakdown as Consolidation Nears Resistance

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