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Nifty Under Pressure, But Bulls Prevail


Yesterday’s Pick

EICHERMOT AUG 4600PE RS. 4,375/- (5 Lot)
HINDALCO FUTURE RS. 6,300/- (Per Lot)

BANKNIFTY 7 AUG 49800 CE RS. 9750/- (5 Lot)

Nifty Technical View

On August 7, the market ended on a positive note for the first time in four sessions, with the Nifty 50 climbing 1.3% in line with global market trends. Despite this gain, the index stayed within the previous day’s range. For a clear upward movement, the Nifty 50 needs to break past the 24,400 mark. If it does, it could continue rising towards 24,700. In the meantime, expect the index to find support around the 24,100 to 24,000 range if it faces any downturn.

India VIX

Volatility has decreased substantially, which is increasingly favorable for bullish market conditions. If the India VIX falls and stabilizes below the 15 mark, it would provide additional reassurance to bullish investors. The VIX has dropped by 13.73%, moving from 18.74 to 16.17.

FII And DII Data

Foreign institutional investors (FIIs/FPIs) sold Indian stocks valued at Rs 3,314.76 crore, whereas domestic institutional investors (DIIs) Bought Indian stocks worth Rs 3,801.21 crore during the same period.

Put Call Ratio

On August 7, the Nifty Put-Call Ratio (PCR), a measure of market sentiment, increased to 0.88 from the previous session’s 0.71.
An increasing PCR, especially when it rises above 0.7 or surpasses 1, suggests that traders are selling more Put options relative to Call options, which typically signals a strengthening bullish sentiment in the market. Conversely, if the PCR drops below 0.7 or moves toward 0.5, it indicates that selling in Call options is outpacing selling in Put options, reflecting a bearish outlook.

Stocks in the news

Coromandel International : Coromandel International has appointed S Sankarasubramanian as MD and CEO of the company.

Protean eGov Technologies : Standard Chartered Bank is likely to sell 3.09% equity in Protean eGov Technologies via block deals tomorrow, according to reports.

Nifty and Bank Nifty Support and Resistance level

NIFTY :-
Resistance 24,350, 25,450, and 25,700
Support based 24,150, 24,000, and 23,900

BankNifty:
Resistance 50,450, 50,750, and 51,050
Support based 49,750, 49,550, and 49,200

Index Future levels

Nifty Futures Buy Above 24,400 The suggested targets for this are 24,550 and 24,700 with the stop loss set at 24,100.

Bank Nifty Buy around 50,000 index is expected to upside levels of 50,150 and 50,300 and level 50,850 will act as a stop loss.

Momentum Pick: Alkem Laboratories Ltd

Buy at ₹ 5500| Target price: ₹5600 |Stop Loss:₹ 5400

Alkem Laboratories is engaged in pharmaceutical business with global operations. The Company is engaged in the development, manufacture and sale of pharmaceutical and nutraceutical products.Alkem is the fifth largest player in domestic formulation market with a market share of 3.9% as on March 31, 2022. It has established its leadership position in acute therapy, with a strong market position in anti-infective, gastrointestinal, pain management, vitamins, minerals, and nutrient segments.

During FY22, Alkem earned 82% of its domestic revenue from top five therapeutic segments, which include anti-infective (39%), gastrointestinal (18%), vitamins, minerals, and nutrients (11%), pain and analgesics (10%), and neuro and central nervous system(4%). Furthermore, Alkem earned around 37% of its domestic revenue from the top ten brands during FY22.

Happy Trading!
Commodity Samachar
Learn and Trade with Ease

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