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Range-Bound Nifty Signals: Is a Powerful Breakout Approaching?


Yesterday’s Pick

BANKNIFTY 18SEP 52000 CE RS.12,000/- ( 10 Lot)
Nifty Future RS.10,000/- ( 5Lot )

Nifty Technical View

The Nifty 50 closed at a new high of 25,419 on September 17, up 35 points. Positive momentum indicators suggest continued upward movement. If the Nifty 50 closes above 25,500 or breaks above the upward trendline, it could rise to 25,800. The immediate support level is 25,200.

India Vix

The India VIX, a measure of market volatility, increased by 1.04 percent to 12.59 from 12.46. This increase, however, occurred after a three-day decline and remained below all key moving averages and the 13 level. This overall decline in volatility favored the bulls, indicating a potential for further upward movement in the market.

Nifty PCR

The Nifty Put-Call ratio (PCR) increased to 1.3 on September 17 from 1.26 in the previous session. A PCR higher than 0.7 or above 1 indicates that traders are buying more Put options than Call options, which generally suggests a bullish sentiment in the market. Conversely, a PCR below 0.7 or approaching 0.5 indicates that traders are selling more Call options than Put options, reflecting a bearish sentiment in the market.

FII And DII Data

On September 17th, foreign institutional investors purchased Indian stocks totaling Rs 482.69 crore, whereas domestic institutional investors Also Bought stocks amounting to Rs 874.15 crore.

Stocks to Watch

REC – The company has signed a non-binding financial commitment for increasing its renewables loan book to over Rs 3 lakh crore by 2030. This will raise the share of renewables from the current 8% to 30% by 2030, as REC’s loan book is projected to reach Rs 10 lakh crore by then.

Torrent Power – The company has received a Letter of Intent from Maharashtra State Electricity Distribution Co. for the procurement of 1,500 MW of energy storage capacity from a pumped hydro storage project for 40 years.

Nifty and Bank Nifty Support and Resistance level

NIFTY :-
Resistance   25,450, 25,400 and 25,800
Support based 25,200,  25,000 and 24,750

BankNifty :
Resistance  :52,350, 52,780 and 53,000
Support based   51,850, 51,550, and 51,250

Index Future levels

Nifty Futures Buy At 25,500 The suggested targets for this are 25,650 and 25,750 with the stop loss set at 25,300

Bank Nifty Buy Above 52,400 index is expected to upside levels of 52,650 and 52,850 and level 51,950 will act as a stop loss.

Momentum Pick: NTPC LTD

Buy above ₹ 418 | Target price: ₹ 440/460 |Stop Loss:₹ 380

NTPC (National Thermal Power Corporation) Ltd along with its subsidiaries/ associates & JVs is primarily involved in generation and sale of bulk power to State power utilities. Other business of the group includes providing consultancy, project management & supervision, energy trading, oil & gas exploration and coal mining.

NTPC Green Energy has incorporated a 50:50 JV with IOC, named “INDIANOIL NTPC GREEN ENERGY PRIVATE LIMITED” on 2 June 2023 to develop Renewable Energy based power projects of 650 MW.
The Capital outlay of NTPC Group has been estimated at ₹28,373 Cr for FY24. In 9M FY24, it incurred CAPEX of ₹21,552 Cr.

Happy Trading!

Commodity Samachar Securities
We Decode the Language of the Markets

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