Nifty Teeters After Touching All-Time High: Consolidation or Correction?

Yesterday’s Pick

LALPATHLAB Cash Rs 21,400 ( Quant 200)
AVANTIFEED Cash Rs 7,200 ( Quant 200)
DHANUKA AGRITECH Rs 56000 ( Quant 200)

Nifty Technical View

The Nifty 50 index is currently moving within a tight range after falling from its peak on Monday. It hit a record high of 23,411.90 but faced resistance, prompting investors to book profits. While the overall trend remains positive, there might be some consolidation or minor pullbacks to ease the overbought conditions. Any decline will be viewed as a part of the ongoing uptrend, since both daily and weekly indicators are still showing positive signals.

Indian Vix

Volatility surged significantly around the time of the Lok Sabha election results, creating challenges for bullish investors. However, after the election results were announced, the VIX, often referred to as the fear gauge, has been steadily decreasing.

Put Call Ratio

On June 10, the Nifty Put-Call ratio (PCR), which measures market sentiment, improved moderately to 0.84. Typically, a PCR above 0.7 or exceeding 1 suggests bullish sentiment, whereas a ratio below 0.7 or approaching 0.5 indicates a bearish outlook.

Stocks in the news

Cognizant Technology

With an eye on accelerating revenue growth in a tough environment, IT major Cognizant Technology Solutions has signed an agreement to acquire US-based Belcan LLC, a global supplier of Engineering Research & Development (ER&D) services at a purchase price of around $1.3 billion in cash and stock. This is Cognizant’s second big acquisition in the last six months as it acquired Thirdera, a ServiceNow advisory platform, in January.

Nifty and Bank Nifty Support and Resistance level


Resistance 23,480, 23,660, and 24,195
Support based 22,945, 22,600, and 22,070


Resistance 50,140, 50,470, and 51,335
Support based 49,275, 48,745, and 47,885

Index Future levels

Nifty Futures Sell below 23200. The suggested targets for this are 23000 and 22,850, with a stop loss set at 23,450.

Bank Nifty future sell below 49,700 index is expected to see down side levels of 49400 and 49200 and level 50,150 will act as a stop loss.

Fundamental Pick : Chambal Fertilisers

Buy at ₹426, target ₹450, stop loss ₹415

Chambal Fertilisers & Chemicals Ltd (CFCL) is a prominent Indian agrochemical company, established in 1985. The company is involved in producing and marketing a diverse array of fertilisers, crop protection chemicals, and industrial chemicals. CFCL’s fertiliser portfolio includes Nitrogenous, Phosphatic, Potassic, and Complex fertilisers. It also offers a variety of crop protection chemicals such as herbicides, insecticides, fungicides, and plant growth regulators. Additionally, CFCL manufactures and markets industrial chemicals like industrial acids, solvents, and intermediates.Among CFCL’s top products are Urea, DAP (Diammonium Phosphate), NPK (Nitrogen, Phosphorus, and Potassium), and Potash, along with various crop protection and industrial chemicals. The company’s well-known brands include Chambal, Urea, DAP, and NPK.

Foreign Institutions have increased their holdings in Chambal Fertilisers & Chemicals Ltd (CFCL) from 13.89% to 15.00% in the March 2024 quarter. Over the past month, CFCL’s stock has risen by 3.7%. Mutual Funds have also increased their holdings, from 6.39% to 6.77% in the same period. Meanwhile, Fertilizers & Chemicals Travancore Ltd has outperformed CFCL significantly, delivering a 447.6% return over the last three years compared to CFCL’s 43.4% return.

Promoters’ holdings in CFCL have remained stable at 60.70% during the March 2024 quarter. The company anticipates margin expansion in FY24-25, driven by energy efficiency projects, and aims to be debt-free by the end of FY25, supported by strong cash flows. Despite a 27% decline in revenue from operations, CFCL’s Q4 profits grew by 3% year-on-year. Over the past year, the stock has surged nearly 33%.

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

Also Read : Spotlight: Natural gas prices rose over 14% last week – What next? Nifty Finishes Green for Three Consecutive Sessions

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