19 Nov
NIFTY OUTLOOK FOR 21 NOVEMBER 2024
Indian equity markets ended the day on a positive note amid heightened volatility. The benchmark indices, Sensex and Nifty, managed to close in the green but well below their intraday highs due to late-session selling pressure.
Market Highlights
Sensex: Closed at 77,578.38, up 239.37 points (0.31%).
Nifty 50: Closed at 23,518.50, up 64.70 points (0.28%).
Market Breadth:
Advances: 2,197 stocks.
Declines: 1,591 stocks.
Unchanged: 95 stocks.
Key Market Trends
Opening Momentum: Strong cues from Asian markets and bottom-fishing supported a robust start, but gains faded in the second half.
Sectoral Performance:
Gainers: Media, Realty, Auto, IT, and Pharma (up 0.5%-2.5%).
Laggards: Metal, Oil & Gas, and PSU Banks (down 0.5% each).
Broader Indices: Midcap and Smallcap indices outperformed, gaining nearly 1% each.
Technical Analysis
Nifty:
Resistance at 23,733 (40-hour average).
Strong support at 23,300, with 23,800 necessary for a trend reversal.
Formed a Doji candlestick pattern, signaling indecision.
Fibonacci retracement at 23,180 indicates a potential downside target.
Bank Nifty:
Closed near 50,800, falling short of intraday highs.
Weakness expected to persist with support at 49,700-49,800.
Resistance zone at 50,800-50,900.
Key Drivers
Profit Booking: Investors used intraday surges to book profits, reflecting caution ahead of Maharashtra Assembly elections.
Geopolitical Tensions: Reports of Ukraine`s first ATACMS missile strike on Russian border regions heightened uncertainty.
Foreign Institutional Investor (FII) Activity: While the pace of outflows has eased, consistent selling remains a key overhang.
Earnings Impact: Weak Q2 earnings and stretched valuations continue to weigh on market sentiment.
Top Gainers & Losers
Gainers:
M&M: +3% (boosted by CLSA’s ‘outperform’ rating, with a target price of ?3,440).
Tech Mahindra, HDFC Bank, Trent, Eicher Motors.
Losers:
SBI Life Insurance, HDFC Life, Reliance Industries, Tata Consumer, Hindalco.
Outlook
Nifty: Bears maintain control, and "sell on rise" remains the dominant strategy unless a decisive move above 23,800 is achieved.
Sector Focus: Realty and Auto sectors are seeing renewed interest due to strong festive sales and correction-driven value buys.
Investment Strategy:
Stick to quality large-cap stocks.
Avoid rushing into mid and small caps despite their recent outperformance.
Market Closure
Markets will remain closed on November 20, 2024, for the Maharashtra Assembly elections.
Disclaimer: This report is for informational purposes only and should not be considered as financial advice.
18 Nov
NIFTY TRADING TIPS FOR 19 NOVEMBER 2024
Market Report: November 18, 2024
Overview
The Indian equity markets extended their bearish trend for the 7th consecutive session, influenced by global and domestic factors. Weakness in key sectors like IT, Oil & Gas, and Telecom exerted downward pressure, while resilience in Banking, Metals, Auto, and FMCG helped benchmarks recover from intraday lows.
Nifty: Closed 79 points lower.
Sensex: Declined by 241 points.
Sectoral Performance
Gainers:
Metals: Outperformed with a gain of 1.80%, driven by optimism around China`s decision to reduce tax rebates on aluminum and copper.
Banking, Auto, FMCG: Showed resilience amidst market uncertainty.
Losers:
IT: Declined over 2% due to subdued investor sentiment, fueled by concerns over reduced FED rate-cut expectations impacting BFSI spending.
Telecom, Oil & Gas: Contributed to the overall weakness.
Market Technicals
Key Observations:
The market remains below its 200-day SMA, forming a bearish candle on daily charts.
Oversold conditions indicate a potential short-term pullback rally.
Key Levels:
Support: 23,350 (Sensex) / 76,950 (Nifty).
Resistance: 23,600–23,700 (Sensex) / 78,000–78,200 (Nifty).
Failure to hold 23,350/76,950 may result in further downside to 23,200–23,175/76,500–76,400.
Public Sector Undertakings (PSUs)
Declining Market Share:
PSUs now represent 15.34% of India’s total market capitalization, an 11-month low.
A decline from 17.77% in May 2024, the peak over the last seven years.
Combined PSU market capitalization: ?66.06 lakh crore in November, a sharp fall from ?81.38 lakh crore in July.
Sectoral Losses:
Significant Decliners:
Mahanagar Telephone Nigam (-57%), Cochin Shipyard (-56%), Chennai Petroleum Corp (-55%).
Several others, including Garden Reach Shipbuilders and Ind Bank Housing, declined over 50%.
PSU Q2 FY25 Earnings Highlights
Disappointing Results:
Nearly half of reporting PSUs underperformed.
14 firms posted losses, while 29 experienced YoY declines in net profit.
42 companies reported YoY declines in operating profit.
Flat Growth:
Many PSUs displayed single-digit or marginal growth in net profits and operating margins, reflecting the challenging economic landscape.
Key Challenges:
Valuation Adjustments: Peaked valuations led to profit booking.
Macroeconomic Pressures: Slower GDP growth, weak GST collections, and subdued government spending compounded market challenges.
Market Sentiment
The ongoing correction reflects alignment between fundamentals and valuations. While Q2 earnings failed to meet expectations, the correction creates opportunities for stock-pickers. However, concerns around operating and PAT margins persist despite robust order books.
Outlook
Short-Term:
A technical rebound is possible from oversold levels if the market sustains above key support zones.
Consolidation may continue due to global uncertainties like rising US bond yields and domestic earnings challenges.
Medium-Term:
Weak PSU performance and declining contributions to market capitalization signal a shift in market dynamics.
Investors are advised to adopt a cautious approach, focusing on sectors with strong earnings potential and lower vulnerability to macroeconomic fluctuations.
Recommendations for Traders
Watch Levels: Maintain caution around 23,350/76,950 as a critical support zone.
Stock Selection: Favor companies with robust fundamentals and resilient sectors like Metals and Banking.
Conclusion
Despite the bearish undertone, the market presents selective opportunities for investors willing to navigate through uncertainties. A combination of technical pullbacks and focused stock-picking could yield gains in the near term. However, challenges in macroeconomic indicators and sectoral performances necessitate a measured approach.
15 Nov
NIFTY BANKNIFTY OUTLOOK FOR 18 NOV 2024
Key Highlights
Benchmark Indices Performance:
Sensex: Down 110.64 points (-0.14%) to close at 77,580.31.
Nifty 50: Down 26.35 points (-0.11%) to close at 23,532.70.
Weekly Decline:
Both Sensex and Nifty dropped by 2.5% for the week, marking the second consecutive week of losses.
Broader indices showed marginal relief, posting gains of 0.4%-0.8%.
Sectoral Performance:
Positive: Realty, Auto, and Media sectors edged higher.
Negative: FMCG, Pharma, PSU Bank, and Metals sectors saw declines.
Midcap Index: Down 4% this week.
Bank Nifty: Down nearly 3% this week, trading near critical support levels.
Market Insights
Support and Resistance Levels:
Nifty:
Current trading near its 200-day moving average (23,556), a crucial support level.
Possible pullback range: 23,700 – 23,750.
Downside risk: Target at 23,180, coinciding with the 61.82% Fibonacci retracement level.
Bank Nifty:
Support at 49,700 (200 DMA).
Immediate resistance: 50,560 – 50,700.
Market Sentiment:
FIIs continue to remain net sellers, though the intensity of selling has eased.
Domestic Institutional Investors (DIIs) provided support.
Global factors, including a strong Dollar Index (106.61) and US 10-year bond yields (4.48%), weighed on sentiment.
Economic Indicators:
Concerns over inflation, driven by rising food prices due to prolonged monsoons.
Rupee depreciation to a historic low of 84.40/USD added pressure.
Anticipation of increased government spending post-election year to support the economy.
Q2 Earnings Impact:
Muted domestic Q2 earnings largely factored in, with consolidation observed over the past 1-2 months.
Investors are now focused on IT and banking sectors for fresh cues.
Outlook and Recommendations
Technical View:
Market remains in a downtrend; any pullbacks should be seen as opportunities to sell.
Key Levels:
Upside: Resistance at 23,700 – 23,750 for Nifty and 50,560 – 50,700 for Bank Nifty.
Downside: Nifty support at 23,180; Bank Nifty support at 49,700.
Strategic Advice:
Monitor leveraged positions closely due to volatility.
Focus on sectoral trends, particularly in realty and auto, which have shown resilience.
Exercise caution amid global uncertainties and inflationary pressures.
Key Events to Watch:
Economic data releases and RBI’s commentary on inflation.
IT and banking sector performance post-Q2 earnings.
Conclusion
Indian markets extended their losing streak into the sixth session as weak global cues, persistent FII outflows, and inflation concerns weighed on sentiment. While key indices are testing significant support levels, the overall trend remains bearish. A cautious approach is advised, with a focus on selective opportunities in resilient sectors like auto and realty.
11 Nov
NIFTY OUTLOOK & TRADING TIPS FOR 12 NOVEMBER 2024
Key Indices Overview
Sensex closed at 79,496.15, up by 9.83 points (+0.01%).
Nifty ended at 24,141.30, down by 6.90 points (-0.03%).
Market Summary
The Indian equity market exhibited significant volatility, with the Nifty oscillating within the 24,000-24,350 range without a clear breakout. While the RSI momentum indicator has shown a bullish crossover, there were mixed signals throughout the session, leading to a flat close.
Technical Patterns and Outlook:
An inverted hammer pattern on the daily chart suggests a possible bullish reversal. The index may test higher resistance levels at 24,500-24,550 if this pattern holds.
On the lower end, support is pegged at 24,000.
A spinning top candlestick pattern emerged, signaling indecision between bulls and bears. A decisive move is needed to break out of this range.
Sectoral Highlights
Gainers: Banking and IT sectors supported the market, ending higher by 0.6% and 1% respectively. Select banking and IT stocks provided crucial support amid choppy trading.
Lagging Sectors: Broader sectors underperformed, with Midcap and Smallcap indices declining by 0.8% and 1%, respectively. Media and Metal sectors were the primary losers, contributing to the downward pressure.
Market Breadth
Advances: 1,446 shares
Declines: 2,478 shares
Unchanged: 116 shares
The broader market sentiment was negative, reflecting overall bearishness, with more declines than advances, notably in midcap and smallcap segments.
Key Stock Movements
Top Gainers: Power Grid Corp, Trent, Infosys, HCL Tech, and Tech Mahindra
Top Losers: Asian Paints, Britannia, Apollo Hospitals, Cipla, and ONGC
Market Influences
Global Impact: Concerns over international events, especially those related to US policy, continue to influence market sentiment. The IT sector outperformed, partly due to a strong US dollar and anticipated increases in US IT spending.
Domestic Factors: Investors are awaiting CPI data, as higher food prices may compel the RBI to hold interest rates in the near term. FII actions are a major force behind current market momentum, which remains susceptible to economic and earnings announcements.
Technical Outlook and Strategy
The broader trend remains choppy with a weak bias. A potential upside bounce may occur around the lower support range of 23,800, while resistance is visible around 24,300.
The market is likely to stay volatile, and a hedged trading strategy is advised. Traders are recommended to focus on selective stock-picking, particularly in sectors with strong momentum.
Conclusion
The market remains in a high-low consolidation range, lacking a decisive direction. Continued volatility is anticipated as the earnings season wraps up.
1. IPO Overview
Swiggy`s IPO has garnered significant market attention, though investor expectations for listing gains are cautious, following a muted response to Hyundai India`s IPO. Swiggy, a prominent player in India’s online food delivery and quick commerce sectors, faces stiff competition from Zomato and potential entry threats from Jio in the hyperlocal delivery market.
IPO Issue Size: 16.01 crore shares
Total Subscription: 35% (5.55 crore shares)
Retail Investors: 83% subscription
Non-Institutional Investors (NII): 14% subscription
Qualified Institutional Buyers (QIB): 28% subscription
Grey Market Premium: Rs 4-5, or a 1% premium in the unlisted market.
2. Financial Performance and Valuation
Swiggy currently operates at a loss and may face challenges in achieving profitability in the near term due to high competition and investment requirements in the quick commerce space. Although the company has shown growth in its Average Order Value (AOV) and expanded its network of Dark Stores from 301 in FY22 to 523 in FY24, these have yet to translate into profitability on a consolidated basis.
Valuation: 8x Price to Sales at the upper price band, with a 76% discount compared to competitors.
Profitability: Long-term focus needed as profitability remains challenging due to high operational costs and competitive pressures.
3. Key Growth Drivers
Quick Commerce Expansion: Swiggy has aggressively expanded into quick commerce, broadening its service offerings and customer base.
Dark Stores Network: The growth from 301 to 523 stores has improved user engagement and operational efficiency, supporting higher order frequencies and better retention rates.
Unified App Experience: A streamlined platform integrating various services has helped drive user growth, hitting 112.73 million users by June 2024.
Focus on User Retention: High transaction frequency, personalization, and basket-size expansion have supported retention and engagement, increasing Monthly Gross Order Value (GOV) per Monthly Transacting User (MTU).
4. Challenges and Competitive Landscape
Profitability Concerns: As Swiggy continues to invest heavily in quick commerce and user engagement, it may take years to reach profitability.
Rising Competition: Swiggy faces strong competition from Zomato, which has a solid market presence, and may also face competition from Jio’s potential entry.
Market Sentiment: Despite strong growth prospects, the IPO has not shown robust initial demand in the grey market, with a low premium reflecting cautious investor sentiment.
5. Investment Recommendation
Given Swiggy’s high growth potential in India’s rapidly expanding online food delivery and quick commerce markets, the IPO presents an attractive long-term investment opportunity. However, due to the company`s current loss-making status and uncertain short-term profitability, it is suitable only for high-risk investors willing to commit for the long term.
Recommendation: SUBSCRIBE (for long-term, high-risk investors)
This report provides a balanced overview, assessing both Swiggy’s strengths in user growth and hyperlocal commerce while considering the challenges related to profitability and competition.
08 Nov
Indian Stock Market Report: November 8, 2024
Summary On November 8, 2024, the Indian stock market saw a second consecutive day of decline, primarily driven by weakness in large-cap stocks like Reliance Industries, ICICI Bank, State Bank of India, and Trent. Despite a 25-basis point rate cut by the U.S. Federal Reserve on Thursday, investor sentiment remained cautious due to subdued Q2 earnings.
Market Indices
Nifty 50 closed at 24,148 points, down 0.21% today and down 0.64% for the week.
Sensex fell by 55.70 points, or 0.07%, ending at 79,486, marking a weekly loss of 0.30%.
Market Overview Indian markets initially showed volatility, with early trades experiencing a 700-point fluctuation. However, markets settled into a range-bound trend, pressured by selective selling in banking, telecom, metal, oil & gas, and realty stocks. While global indices saw a recovery, Indian markets continued to experience outflows from Foreign Institutional Investors (FIIs), contributing to the negative sentiment.
The Nifty Midcap 100 and Nifty Smallcap 100 indices bore the brunt of today’s selloff, declining by 1.42% and 1.76%, respectively.
Sectoral Performance
Sector Closing Change (%)
Realty -3.00%
Media -2.09%
PSU Bank -1.00%+
Oil & Gas -1.00%+
Energy -1.00%+
Metal -1.00%+
IT +0.71%
FMCG +0.31%
Pharma Flat
Auto Flat
Top Gainers: IT stocks benefited from renewed investor interest due to the U.S. Fed’s rate cut, with the Nifty IT index rising by 0.71%. The Nifty FMCG index also rebounded, posting a gain of 0.31%.
Top Losers: Realty and Media stocks saw continued bearish momentum, with the Nifty Realty index declining by 3% and the Nifty Media index falling 2.09%.
Nifty 50: Individual Stock Highlights
Gainers
Out of 50 stocks, 23 Nifty constituents ended in the green:
Mahindra & Mahindra led the gains with a 2.9% increase, following a strong Q2 performance that exceeded market expectations.
Other Gainers: Titan Company, Tech Mahindra, Infosys, Nestle India, HUL, Power Grid, Cipla, and a few others saw gains above 1%.
Losers
27 Nifty stocks ended in the red:
Trent was the largest loser, dropping 3.2% after disappointing Q2 earnings, marking a two-day decline of 9.5%. The stock is down 24.52% since its October peak.
Other Losers: Coal India, Asian Paints, and Tata Steel declined by over 1%.
Key Market Drivers
Subdued Earnings: Q2 earnings for several companies have been below expectations, affecting investor confidence.
FII Outflows: Continued outflows from Foreign Institutional Investors are putting pressure on market liquidity and sentiment.
Global Rate Cuts: The U.S. Fed’s rate cut has sparked some interest in IT stocks, but the Indian market has largely been unaffected due to local economic concerns.
Inflation Concerns: Rising inflation expectations in India could lead the RBI to hold rates, despite the Fed’s easing stance.
Technical Outlook for Nifty 50
Support Level: 24,000 is considered a crucial support level. If this level holds, the market may recover, potentially reaching 24,500 in the near term.
Downside Risk: A breach below 24,000 could signal further downside, leading to a possible market correction.
Momentum Indicators: The RSI remains in positive crossover territory, suggesting short-term momentum may remain intact, barring any significant downside triggers.
Conclusion and Outlook
While today`s rate cut by the Fed provided some optimism for selective sectors, broader market sentiment remains cautious due to disappointing earnings and FII outflows. If the Nifty 50 holds above the 24,000 support level, there is potential for a near-term recovery. However, a fall below this threshold could prompt a further correction in the coming days.
08 Nov
Swiggy IPO Report: Key Highlights Before Subscribing
Swiggy, a leading player in India’s food and grocery delivery market, is set to launch its initial public offering (IPO). This report provides crucial insights into the IPO structure, key dates, financials, and Swiggy’s planned use of proceeds.
Swiggy IPO Details:
IPO Dates:
Open Date: November 6, 2024
Close Date: November 8, 2024
Allotment Date: November 11, 2024
Listing Date: November 12, 2024
Issue Size: ?11,327.43 crore
Fresh Equity Shares: 11.54 crore shares valued at ?4,499 crore
Offer-for-Sale (OFS): 17.51 crore shares, raising ?6,828.43 crore
Price Band: ?371 – ?390 per share
Lot Size: 38 shares per lot
Investment Structure:
Minimum Investment: For retail investors, the minimum bid involves 1 lot (38 shares), requiring a minimum investment of ?14,820.
Allocation Breakdown:
Qualified Institutional Buyers (QIBs): 75% of net issue
Retail Investors: 10% of net issue
Non-Institutional and High Net-Worth Investors (NIIs): 15% of net issue
Non-Institutional Minimum Lots:
Small NIIs (sNIIs): Minimum 14 lots
Big NIIs (bNIIs): Minimum 68 lots
Allotment and Refund Details:
Basis of Allotment Finalization: November 11, 2024
Shares Credited to Demat Accounts: November 12, 2024
Refund Initiation: November 12, 2024
Purpose and Utilization of Proceeds:
Swiggy plans to utilize the funds from the IPO to support growth and enhance operational efficiencies:
Debt Reduction: Partial or full prepayment of borrowings related to its subsidiary, Scootsy.
Quick Commerce Expansion: Investment in Swiggy’s quick commerce segment, especially by increasing dark stores.
Technology and Infrastructure: Enhancing cloud infrastructure and tech capabilities.
Marketing and Brand Awareness: Improving Swiggy’s market presence.
Corporate Expenses: General corporate purposes.
Company Overview:
Founded: 2012
Key Services: Food delivery, Swiggy Instamart (quick commerce), Swiggy Minis, and Swiggy Genie.
In FY24, Swiggy recorded:
Revenue: ?11,634.35 crore
Net Loss: ?2,350.24 crore
In Q1 FY25, Swiggy reported:
Revenue: ?3,310.11 crore
Net Loss: ?611 crore
Conclusion:
With this IPO, Swiggy aims to consolidate its market position, drive technological enhancements, and strengthen its quick commerce offerings. Investors may consider Swiggy`s recent financials, growth trajectory, and market strategies before subscribing to this IPO.
This concise overview covers essential information about Swiggy’s IPO, aiding investors in making informed decisions.
07 Nov
Market Report: Nifty Short-Term Trends and Key Technical Levels
Overview
The short-term trend in the Nifty index remains uncertain, with persistent volatility expected in the coming sessions. While Nifty has shown some resilience with an upside bounce over the last two sessions, the index remains constrained by crucial resistance levels.
Key Resistance and Support Levels
Resistance Level: Until the Nifty breaks above the 24,500 mark, a sustained upward trend is unlikely. This level represents a significant barrier that has remained unbreached despite recent attempts, keeping the upward momentum in check.
Support Level: On the downside, Nifty could find support around 23,800. This level is anticipated to act as a cushion against significant downward movement, potentially stabilizing prices during market dips.
Technical Indicators
Candle Pattern: A long negative candle has formed on the daily chart, which followed an upside bounce in the previous two sessions. This candle pattern suggests that, although a significant drop is not evident, some degree of consolidation or a minor correction could be anticipated, potentially bringing Nifty down to 23,800 or lower levels.
Open Interest Analysis
Open interest (OI) data provides insights into market sentiment and potential support and resistance levels:
Call Side OI: The highest call OI is observed at the 24,200 and 24,250 strike prices, indicating that these levels could act as overhead resistance.
Put Side OI: On the put side, the highest OI is at the 24,200 strike, followed by the 24,150 strike price, suggesting some level of market support at these levels.
Analyst Insights
Conclusion
In the immediate term, the Nifty is expected to trade with limited upside potential unless a decisive breakout above 24,500 occurs. Traders should monitor the support at 23,800, which could be tested during any downward correction. Meanwhile, open interest data points to specific resistance and support levels around the 24,200 and 24,150 strike prices, reflecting market sentiment and the likelihood of consolidation around these levels.
This report recommends caution for short-term traders, with a focus on observing how Nifty behaves around the 23,800–24,500 range before making significant trades.
06 Nov
Market Analysis Report: Sensex and Nifty 50 Surge Amid US Election Trends
Market Overview
The Indian stock market saw strong upward momentum today, with the Sensex and Nifty 50 indices jumping over 1% each, marking the second consecutive day of gains. This positive sentiment stemmed largely from early reports suggesting that former US President Donald Trump is leading the 2024 US presidential election race, which has influenced global market sentiment, especially in emerging markets like India.
Key Highlights
Sensex Performance: The 30-share Sensex index closed up by 902 points, or 1.13%, at 80,378.13, with 25 of its constituents finishing in the green.
Nifty 50 Performance: Nifty 50 gained 271 points, or 1.12%, to close at 24,484.05.
Market Capitalization: BSE-listed firms’ total market cap rose to nearly ?453 lakh crore, marking an increase of approximately ?8 lakh crore from the previous session.
Sectoral Indices: Gains were broad-based, led by a 4% surge in the Nifty IT index. Other sectoral indices that showed notable gains include Nifty Realty and Oil & Gas, up nearly 3% each. Consumer Durables, Auto, Media, Metal, Pharma, and PSU Banks also rose by over 1%.
Top Gainers and Laggards
Top Gainers: Tech-focused stocks led the rally, with TCS, Infosys, Tech Mahindra, and HCL Tech among the biggest gainers.
Laggards: Stocks like Titan, IndusInd Bank, Hindustan Unilever, Axis Bank, and HDFC Bank finished lower.
Broader Market Trends
The BSE Midcap and Smallcap indices surged 2.28% and 1.96%, respectively, with over 200 stocks hitting fresh 52-week highs, including names like Coforge, City Union Bank, Deepak Fertilisers, eClerx Services, Gillette India, Mankind Pharma, and National Aluminium Company.
Analysis of the Key Drivers
US Election Results: Trump`s strong lead in the early election results has spurred expectations of reduced political uncertainty, particularly around potential tax cuts and government spending increases under a Republican administration. His prior focus on a robust fiscal policy is viewed as a catalyst for a risk-on sentiment in global markets.
Implications for Indian IT: The Indian IT sector, a significant contributor to market indices, saw a strong rally. With improved BFSI (Banking, Financial Services, and Insurance) spending in the US, Indian IT companies anticipate increased demand. However, potential H-1B visa restrictions under a Trump-led government could challenge the sector in the near term.
India’s Advantage in Global Trade: A Republican administration is expected to take a protectionist stance, likely renewing tariffs that could revive the US-China trade war. This may benefit India under the "China-plus-one" strategy as global firms seek alternatives to China for supply chain stability, especially in sectors like pharmaceuticals.
Commodity Prices and Inflation Impact: A cooling Chinese economy could lead to a decline in commodity prices, benefiting India. However, Trump’s policies on tariffs may increase inflationary pressures in the US, possibly delaying the Federal Reserve’s plans to reduce interest rates. This factor could indirectly affect Indian markets if tighter global monetary policy continues.
Conclusion and Outlook
The Indian stock market remains poised for potential gains, driven by global market optimism surrounding the US election results. While the IT sector currently enjoys a favorable position, looming visa restrictions may temper growth prospects in the medium term. Additionally, India`s pharmaceutical and manufacturing sectors could capitalize on a rebalancing of supply chains away from China, given geopolitical dynamics under a Trump-led administration.
Overall, the impact of Trump’s policies on trade and tariffs, coupled with the “China-plus-one” approach, could provide significant opportunities for Indian businesses in sectors ranging from IT to manufacturing, real estate, and consumer durables. However, investors should keep an eye on inflationary pressures and monetary policy responses, particularly from the US Federal Reserve, as these will continue to shape market dynamics.
05 Nov
BEST OPTION CALL PUT TRADING TIPS FOR 6 NOVEMBER 2024
Key Takeaways:
Nifty 50 rose by 217 points to close at 24,213.
BSE Sensex gained 694 points, ending the day at 79,476.
Both indices experienced a late-session rally after initially falling about 0.6%.
Market Movers:
The financial sector led gains, with stocks rising nearly 2%, driven by HDFC Bank, which rose 2.6%.
Among sectors, metals outperformed with an increase of 2.8%.
Influencing Factors:
US Presidential Election Uncertainty: With a tight race between Kamala Harris and Donald Trump, investors remained cautious, balancing potential market impacts.
A Trump victory is anticipated to lower corporate tax rates, possibly spurring spending and benefiting Indian equities.
A Harris victory is expected to provide policy continuity, a mildly positive signal for the Indian market.
International Sentiment: Optimism across Asian and European markets ahead of the US election lifted local trader confidence, contributing to the late-day market recovery.
Expert Analysis:
The domestic market rebound offset previous losses amid uncertainty in the Q2 GDP forecast and a highly contested US election.
Increased domestic manufacturing activity and anticipated consumer revival in H2 are expected to support market stability.
Metals were bolstered by anticipated stimulus from China.
The turnaround towards closing was driven by value buying in banking stocks, metals, and oil & gas.
Positive momentum in global indices, despite medium-term outlook uncertainty, helped stabilize sentiment.
(Stock Market Today):
The technical analysis indicated that the Nifty RSI has moderated to 68, with the index trading below its 20-week EMA yet above its 20-month EMA.
Investment Strategy:
Short-term investors should consider a ‘buy on dips’ approach.
Long-term investors could adopt a ‘sell on rise’ strategy.
Key support and resistance levels:
Support: 24,060 - 23,800
Resistance: 24,350 - 24,500
Sector Watch:
With 11 of 13 major sectors advancing, areas of focus include:
Infrastructure, Banking, IT, and PSU sectors—identified as having high potential for value investments.
Summary:
The strong finish in both Nifty 50 and Sensex underscores market resilience, supported by an optimistic global outlook and sectoral gains, particularly in financials and metals. The market is in a cautiously positive phase, influenced by international events and key economic indicators.
04 Nov
"Market Turbulence: Nifty Slips Below 24,000 Amid Global Uncertainty and Technical Weakness"
Market Recap
The Indian equity market experienced significant volatility as the benchmark Nifty50 index fell sharply, marking a turbulent beginning to the new Samvat. Key highlights from today`s session include:
Nifty50 dropped approximately 500 points intraday to a fresh four-month low, eventually closing 309 points lower at 23,990.30, down 1.29% for the day.
Sensex also declined 941.88 points (1.18%), closing at 78,782.24.
The Nifty Energy index led the sectoral losses, falling by 2.72%, while Nifty Realty and Nifty Infra also declined by 2.9% and 2.2% respectively.
India VIX, a measure of market volatility, spiked by 5.03% to 16.70, signaling increased investor anxiety.
Technical Analysis
Nifty50:
The index has experienced a breakdown from its five-day consolidation pattern, suggesting the continuation of a downtrend.
Key resistance zones are positioned at 24,200 - 24,400, while crucial support is at 23,900 - 23,800.
A breakdown below 23,500 could trigger a deeper correction towards the 23,450 - 23,400 zone.
A move above 24,100 may indicate a potential relief rally towards 24,500.
Bank Nifty:
Bank Nifty experienced a sharp decline but stayed within its 52,000 - 51,000 range.
Crucial support for Bank Nifty lies between 50,720 - 50,600, with resistance around 51,750 - 51,800.
Derivative and Sentiment Indicators
The market sentiment remains weak due to oversold technical indicators; however, any signs of stability could provide a relief rally.
The India VIX moving toward the 17 level indicates elevated volatility, warranting a cautious approach.
Global Cues and Macro Influences
The sell-off was triggered by both domestic and international concerns:
US Presidential Election: Investor anxiety is high with the US election scheduled for November 5. Potential delays in results are causing unease.
Federal Reserve Policy: A rate cut of 25 bps is anticipated in the upcoming policy announcement, but disappointing US jobs data and recent layoffs add to concerns.
Inflation and Employment Data: The October jobs report is expected to show a decrease, potentially fueling the Fed’s decision to maintain or lower interest rates. The Boeing strike and Hurricane Milton’s impact are expected to weaken job figures.
Fundamental Outlook
High market valuations and weak Q2 earnings have made the Indian market vulnerable to global sell-offs.
Anticipated volatility may persist in the near term, driven by global macroeconomic events such as policy decisions from the US Federal Reserve and Bank of England.
Conclusion and Strategy
With heightened volatility expected, it’s recommended to adopt a stock-specific approach while staying cautious about broad market positions. Attention to key support and resistance levels is crucial for navigating the current market:
Nifty50 Support: 23,900 - 23,800 (key short-term support) and 23,500 (crucial breakdown level).
Nifty50 Resistance: 24,200 - 24,400 with a pivotal resistance at 24,500 for potential recovery.
Bank Nifty Range: 52,500 - 50,500 with a downside bias.
Market participants should remain cautious and stay light on positions, considering the potential for further corrections or consolidation.
30 Oct
Muhurat Trading 2024: Embracing Tradition and Opportunity this Diwali
As Diwali nears, the Indian stock market gears up for its annual Muhurat trading session—a one-hour evening trading window that blends tradition with finance. This year, both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) will hold their Muhurat trading on Friday, November 1, from 6:00 pm to 7:00 pm. Despite remaining closed during the day, this special evening session allows investors to make symbolic trades, honoring a centuries-old tradition that aligns with the Diwali themes of wealth and prosperity.
Why Muhurat Trading Matters
Muhurat trading, unique to India, represents an auspicious time for investments. Many investors view it as a chance to invite prosperity into their financial lives, often with token investments marking the start of a positive financial journey. Over the years, this session has frequently delivered positive returns, with 13 out of the past 16 years showing gains, highlighting the favorable sentiment surrounding Diwali in the markets.
Last Year`s Success and Historic Trends
In the 2023 Muhurat trading session, the BSE Sensex closed up 355 points, a 0.55% rise, while the Nifty50 gained 100 points, closing 0.52% higher. Mid- and small-cap stocks outperformed, with the BSE Midcap index rising 0.67% and the BSE Smallcap index climbing by 1.14%. Gains across the board boosted investor confidence, with market capitalization adding approximately ?2.2 lakh crore. Prominent gainers included Coal India, UPL, Infosys, and Eicher Motors, underscoring broad-based strength during the session.
Historically, Muhurat trading has yielded positive returns. For instance, the indices rose by around 1% in 2022, 0.5% in 2021, and 0.47% in 2020. While minor declines have occurred, the trend generally favors gains, with notable exceptions like the 6% jump during the global financial crisis in 2008, which marked the highest gain ever recorded on Muhurat trading day.
Strategic Insights for Samvat 2081
The year Samvat 2081 begins amid significant global economic shifts, with analysts viewing potential market dips as opportunities. According to Pranav Haridasan, MD and CEO of Axis Securities, the current environment—marked by the US Federal Reserve’s recent 50 basis points rate cut and potential further cuts—presents both challenges and opportunities. In contrast, the Reserve Bank of India’s neutral stance amid inflationary pressures adds an interesting dynamic. Haridasan emphasizes that a focus on corporate earnings and a balanced approach to stock selection will be crucial as Samvat 2081 unfolds.
Tips for Investors: Make the Most of Muhurat Trading
While the festive sentiment may inspire, experts suggest a cautious approach for Muhurat trading due to limited liquidity during the session. Beginners are encouraged to start with token investments and consult a financial advisor to ensure informed decisions. Investors looking at long-term gains should prioritize quality stocks with growth potential and reasonable valuations, setting a foundation for financial growth in the coming year.
Embracing Prosperity and Optimism
Muhurat trading represents more than just an opportunity for financial gain; it’s a celebration of optimism, prosperity, and cultural heritage. As we welcome Diwali, this tradition allows investors to symbolically begin the year on a positive note, embodying the spirit of wealth and well-being that Diwali brings to millions of households.
This year’s Muhurat trading session promises not just to carry forward a long-standing tradition but to offer meaningful opportunities amid evolving market conditions, making it an exciting time for both new and seasoned investors.
25 Oct
NIFTY TRADING TIPS & NIFTY BANKNIFTY OUTLOOK FOR 28 OCT 2024
Key Market Indices Performance
Sensex: Closed at 79,402.29, down 662.87 points or 0.83%
Nifty: Closed at 24,180.80, down 218.60 points or 0.90%
Bank Nifty: Experienced a significant drop, down 744 points, closing at levels indicating further downside potential.
Market Overview
The Indian equity markets continued their downward trajectory on October 25, 2024, with the Sensex dipping below the critical 80,000 mark, reflecting a weak sentiment across various sectors. The Nifty, after a brief pause, resumed its decline, closing just above the psychological support zone of 24,000. Broader market indicators, including major sectors like metals, autos, and energy, saw significant sell-offs, declining by nearly 2%.
The market downturn is primarily driven by several key factors:
Dismal Q2 earnings: Major companies reported lackluster results, especially in the consumption sector.
Foreign Institutional Investor (FII) Outflows: Continued FII selling has aggravated the pressure, possibly in response to global concerns and valuation adjustments.
Global Economic Slowdown: A sustained decrease in crude oil prices and signals of decelerating demand suggest a widespread economic slowdown, dampening sentiment further.
Technical Analysis
Nifty: Closed at 24,180, reflecting bearish momentum after testing 24,000-24,050, a crucial support region aligned with the daily lower Bollinger Band. There’s potential for a pullback to 24,350, but traders are advised to adopt a "sell on rise" approach. Key resistance lies at 24,500, with downside support at 24,000.
Bank Nifty: This index has weakened, aligning with the overall market, and is expected to test the 49,400-49,500 support level. The structure suggests a continuation of the decline, with an eye on further sectoral losses in the financial segment.
IPO Performance Outlook
Deepak Builders: Expected to debut positively with a GMP of 24.63% (approximate listing price: Rs 253). The stock’s strong 41.54x subscription and solid fundamentals indicate potential upside. However, investors should adopt a cautious approach due to broader market volatility, considering partial profit booking on listing.
Broader Market and Sectoral Outlook
Investors face a challenging landscape, influenced by:
FII outflows: Driven by a shift towards the Chinese market and concerns over Indian valuations.
Earnings Season: The disappointing results in the consumption and financial sectors reflect a slowdown, especially in urban demand.
Retail and HNI Selling: The current correction has drawn sell-offs from high-net-worth individuals (HNIs) and retail investors, who have seen valuations dip substantially for the first time in recent months.
Strategic Insights
Nifty`s 200-DMA Support: The index is expected to test its 200-day moving average at approximately 23,400. A potential rebound may occur post-October expiry, though midcap and small-cap sectors could continue to face pressure.
Investment Strategy: Investors with a long-term perspective might consider selectively adding quality large-cap stocks, especially in the financial sector where valuations are increasingly attractive.
09 Oct
NIFTY OUTLOOK FOR 10 OCT 2024
Market Report: Indian Equity Indices Close Marginally Lower Amid Volatility – October 10, 2024
On October 10, Indian equity indices concluded a volatile trading session with marginal declines, as concerns about inflation weighed on investor sentiment.
Key Indices Performance:
Sensex closed at 81,467.10, down by 167.71 points or 0.21%.
Nifty ended at 24,982, down 31.20 points or 0.12%.
Despite early gains, profit booking toward the close dragged the indices down. The Nifty opened higher, but it struggled to maintain momentum, closing just above the 20-day moving average (20DMA). As a result, the short-term trend remains positive, provided the index holds above 24,940. A drop below this level could lead to a further correction toward 24,800 or 24,700, while 25,100 serves as an immediate resistance level.
Key Market Highlights:
Inflation Concerns: The Reserve Bank of India`s (RBI) upward revision of Q3FY25 inflation estimates fueled worries over persistent inflationary pressures. This led to caution among investors, resulting in profit booking, particularly in FMCG stocks.
RBI`s Neutral Stance: Although the change in the RBI`s stance to neutral was anticipated, the absence of signals for a near-term rate cut added to market uncertainty.
Sectoral Performance:
FMCG was the biggest laggard, down 1.57%, followed by Energy.
On the upside, Pharma and Realty sectors were the best performers, each gaining between 1-2%.
Midcap and Smallcap Outperformance: The BSE Midcap and Smallcap indices rose by over 1%, outperforming the broader market. Investors appeared to focus on stock-specific opportunities amid the market correction.
Top Nifty Gainers:
Trent
Cipla
Tata Motors
SBI
Maruti Suzuki
Top Nifty Losers:
ITC
Nestle
Reliance Industries
ONGC
HUL
Outlook: While volatility remains high, support and resistance levels are crucial for determining market direction. A breach below 24,750 could signal a bearish trend, while a breakout above 25,200 would suggest bullish momentum. Investors are advised to monitor these levels closely to assess the near-term outlook.
05 Oct
NIFTY OUTLOOK FOR 7 OCTOBER 2024 (NIFTY OR DOWN)
Market Report: Indian Equity Indices – October 4, 2023
Summary:
Indian equity indices faced significant selling pressure on October 4, marking the fifth consecutive session of losses. The Nifty index, which briefly dipped below the 25,000 mark during intraday trading, closed at 25,049.80, down 200.30 points (-0.79%). The Sensex followed a similar trend, closing at 81,688.45, down 808.65 points (-0.98%). The broader market exhibited profit booking, with a nearly 1% decline in both Midcap and Smallcap indices.
Market Performance:
Nifty 50: Closed at 25,049.80, down 200.30 points (-0.79%).
Sensex: Closed at 81,688.45, down 808.65 points (-0.98%).
Advance/Decline Ratio: 1,522 shares advanced, 2,266 shares declined, and 101 remained unchanged.
Sector Performance:
Top Losers: M&M, Bajaj Finance, Nestle India, BPCL, Asian Paints.
Top Gainers: Infosys, ONGC, Tata Motors, Wipro, HDFC Life.
Sectoral Indices:
Gainers: IT and PSU Bank sectors were the only sectors to show positive performance.
Losers: Realty, FMCG, Auto, Power, Media, Telecom, and Oil & Gas indices declined by 1-2%.
Market Drivers:
Geopolitical Tensions: Increasing tensions in West Asia and rising crude prices have raised concerns about inflation, dampening expectations for a rate cut by the Reserve Bank of India (RBI) in the upcoming policy meeting.
Foreign Institutional Investment (FII): There has been noticeable selling by foreign investors, adding further pressure on the market.
Volatility Index: A rise in the volatility index indicated increasing market uncertainty, leading to profit booking.
Technical Analysis:
The Nifty has shed 1,310 points (-5.2%) since reaching a fresh high of 26,277 last week.
A key resistance level to watch is 25,600; the overall market bias will remain negative unless this level is reclaimed.
Outlook:
Markets are expected to consolidate in the coming week amid cautious sentiment, especially with the earnings season starting soon. Traders should pay attention to interest-sensitive stocks in light of the RBI policy meeting next week, where while a rate cut may not be on the table, the accompanying commentary will be crucial.
Recommendations:
Hedging Strategy: Given the current market volatility, adopting a hedged approach is advisable.
Focus on Resilient Sectors: Key sectors like IT, metals, and pharma have shown resilience; consider reallocating investments toward these sectors while being cautious with those under pressure.
Stock-Specific Action: Monitor individual stock performances closely as earnings results may drive specific stock movements.
Conclusion:
The Indian equity market continues to experience a corrective phase amid geopolitical concerns and profit booking. With the earnings season approaching and a pivotal RBI policy meeting on the horizon, market participants should remain vigilant and adjust their strategies accordingly.
26 Sep
NIFTY OUTLOOK FOR 27 SEPTEMBER 2024
Key Highlights:
Nifty closes above 26,200 for the first time, ending the session at 26,216.05, up by 211.80 points or 0.81%.
Sensex surged 666.25 points or 0.78%, closing at 85,836.12.
All major sectors rallied, with Auto, Metal, and FMCG leading gains.
Midcap index ended flat, while the Smallcap index declined by 0.4%.
Market Overview: On the monthly expiry day, Indian equity indices closed at record highs, driven by favorable global cues, rotational buying, and positive sectoral participation. Nifty showed strong momentum in the second half, closing above 26,200, marking a significant psychological milestone. Despite the broader indices showing mixed performance, key sectors, especially Auto and Metal, supported the rally.
The Sensex surged by 666.25 points to close at 85,836.12, reflecting a 0.78% gain. Nifty moved up 211.80 points to finish at 26,216.05, up by 0.81%. The broader market, however, showed signs of caution as 1,603 shares advanced and 2,200 shares declined, suggesting selective stock-picking.
Sectoral Performance:
Top Gainers:
Auto and Metal sectors gained around 2% each, showing robust buying interest.
FMCG and PSU Bank indices were up 1% each, contributing to the positive market sentiment.
Underperformers:
The Capital Goods index was the lone laggard, down by 0.6%, reflecting some profit-booking.
Broader Market:
The BSE Midcap index ended flat, indicating subdued performance in mid-cap stocks.
The Smallcap index declined by 0.4%, continuing its recent underperformance.
Top Gainers:
Maruti Suzuki
Tata Motors
Shriram Finance
Grasim Industries
Mahindra & Mahindra (M&M)
Top Losers:
ONGC
Cipla
NTPC
Hero MotoCorp
Larsen & Toubro (L&T)
Technical Analysis:
Nifty Outlook:
Nifty has broken out of its consolidation phase, signaling strong bullish momentum. On the daily charts, the index formed a Marubozu Open candlestick pattern, indicating a firm grip of bulls. Nifty is now heading towards the upper end of the rising channel at 26,560, with immediate support at 25,970. The upward trend remains intact, and any move below 26,000 could indicate caution, but the overall sentiment is expected to remain positive.
Bank Nifty:
Bank Nifty broke out of its sideways consolidation range of 53,800 – 54,300 on the upside, indicating strength. The next target for Bank Nifty is around 55,000, with immediate support at 54,000 – 53,900.
Global & Domestic Cues: Global markets have been buoyed by falling bond yields in the US and stimulus measures in China, contributing to renewed optimism in equity markets worldwide. Domestically, positive sentiment and strong buying in rate-sensitive sectors such as Banking, Auto, and Realty continue to push the indices higher.
Outlook for September 27, 2024:
The current trend indicates a continuation of the bullish momentum with Nifty targeting 26,500 in the coming sessions.
Investors are advised to maintain caution, with trailing stop-losses at 26,000 to protect against sudden reversals.
Sector Watch: Focus on rate-sensitive sectors like Auto, Banking, Realty, and Financials, while selectively picking stocks in Metal and Energy sectors.
25 Sep
NIFTY OUTLOOK FOR 26 SEP 2024
The record-breaking run continued on Dalal Street as the Nifty Index managed to close above 26,000 for the first time, led by gains in energy, metal, and media sectors. After a volatile session, the Sensex gained 255.83 points or 0.30%, closing at 85,169.87, while the Nifty was up 63.80 points or 0.25%, finishing at 26,004.20. The day witnessed a mix of subdued movement and a sharp rally in the final hour of trading, pushing Nifty near its intraday high.
Key Highlights:
Nifty 50: Closed at 26,004.20 (+0.25%)
Sensex: Closed at 85,169.87 (+0.30%)
Market Sentiment: Range-bound for most of the session but turned positive toward the close, driven by short-covering ahead of the monthly expiry.
Sectoral Performance:
Top Performers:
Energy: Steady gains due to positive momentum in power stocks.
Metals: Strong buying seen in the sector, supporting Nifty`s rally.
Media: Led the day’s performance with significant gains.
Realty: Saw a notable uptick driven by positive sector-specific developments.
Laggards:
IT & FMCG: Both sectors underperformed, with notable selling in IT stocks like LTIMindtree and Tech Mahindra.
PSU Banks: Weakness observed due to profit-taking in some midcap and smallcap counters.
Stock Performers:
Top Gainers:
Power Grid Corp, NTPC, Axis Bank, Grasim Industries, Bajaj Finserv.
Top Losers:
LTIMindtree, Tech Mahindra, Tata Consumer, Tata Motors, Titan Company.
Midcap & Smallcap Performance:
Both Midcap and Smallcap indices experienced a minor correction, down 0.5% each. This suggests profit-booking in broader markets, putting pressure on overall market breadth.
Technical Overview:
The Nifty opened mildly in the red, consolidated with a positive bias throughout the day, and rebounded from the 25,850–25,875 support zone to close above 26,000.
The daily chart shows a bullish candle, indicating that the uptrend remains intact.
Resistance: The Nifty faces a strong resistance between 26,200–26,250, while support has shifted higher to the 25,950 level.
Bollinger Bands: Nifty is expected to continue its rally towards 26,300, where the weekly upper Bollinger band is located.
Bank Nifty Outlook:
Bank Nifty consolidated with a positive bias and witnessed subdued price action due to the upcoming monthly expiry.
The current consolidation phase is likely to break out on the upside, with a potential rally towards the 55,000 mark in the short term.
Support: The critical support level for Bank Nifty is placed at 53,800 – 53,600.
Market Breadth:
The overall market breadth remained negative, with 1,637 shares advancing against 2,148 shares declining, indicating broader market weakness due to profit-taking, especially in midcap and smallcap stocks.
Outlook:
We maintain a bullish outlook as the Nifty continues to show strong momentum, especially in metal, power, and energy stocks. Despite broader market weakness, sectoral outperformance in energy and realty, along with resilience in Nifty`s uptrend, suggests continued strength.
However, traders should remain cautious as global uncertainties and profit-booking in the broader market could lead to intermittent corrections. The ongoing correction in the IT sector may present a buying opportunity for long-term investors.
Key Levels:
Nifty Support: 25,950
Nifty Resistance: 26,200 – 26,250
Bank Nifty Support: 53,800 – 53,600
Bank Nifty Target: 55,000 in the short term
Investors should focus on stock selection aligned with sectoral trends, with energy and metal sectors showing strong momentum.
24 Sep
NIFTY OUTLOOK FOR 25 SEP 2024
Market Overview:
The Indian equity markets witnessed a mix of bullish and bearish activity in today’s volatile trading session. The session started on a muted note, with the Nifty Index correcting slightly before oscillating within a narrow range. The Information Technology (IT) sector provided significant support, helping the Index surpass the psychological barrier of 26,000. However, the gains were wiped off towards the end, with the Nifty closing just below the 26,000 mark.
The market was characterized by mixed performance across sectors, with Metals leading the gainers and Public Sector Banks (PSU Banks) emerging as the major laggards. The broader markets showed a diverging trend, with Midcaps outperforming the frontline Index, while Smallcaps ended the session in the red.
Key Market Data:
Nifty closed at 25,940.40, up by 1.40 points or 0.01%.
Sensex closed at 84,914.04, down by 14.57 points or 0.02%.
Market breadth was mixed with 1,871 shares advancing, 1,946 shares declining, and 84 shares remaining unchanged.
Technical Analysis:
A Spinning Top candlestick pattern formed at record levels, signaling indecisiveness between bulls and bears. This pattern suggests that while the market touched high levels, the fight between buyers and sellers intensified, leading to a flat close.
Resistance: A strong breakout above 26,000 will pave the way for the Nifty to reach 26,100.
Support: On the downside, the 25,800-25,850 zone will act as a crucial support area for the index.
The Nifty is still trading above its critical 21-day EMA (Exponential Moving Average), and the bullish crossover in the daily RSI indicates short-term positivity. However, to maintain the upward trajectory, a decisive break above 26,000 is essential. Otherwise, the index is likely to remain range-bound between 25,800 and 26,000 in the near term.
Sectoral Performance:
Top Gainers:
Metals: The Metal Index surged by 3%, with stocks like Tata Steel and Hindalco Industries leading the gains.
Oil & Gas: Up by 0.6%, supported by gains in major energy companies.
Power: The Power Index rose by 1.4%, with Power Grid Corp among the top contributors.
Top Losers:
PSU Banks: The PSU Banking sector was the worst performer, down by 0.5-1%.
FMCG: Marginally down as well, weighed by stocks like HUL.
Telecom: Also saw a decline of 0.5-1% during the session.
Top Gainers & Losers:
Biggest Nifty Gainers:
Tata Steel
Hindalco Industries
Power Grid Corp
Tech Mahindra
Adani Enterprises
Biggest Nifty Losers:
SBI Life Insurance
HUL (Hindustan Unilever)
Grasim Industries
UltraTech Cement
Shriram Finance
Broader Market Performance:
Midcap Index: Outperformed the frontline index, showing resilience amidst volatility.
Smallcap Index: Ended on a flat note, signaling weakness in smaller stocks compared to their midcap counterparts.
Outlook:
The short-term sentiment remains positive for Nifty, but the market appears to be taking a breather after a three-day rally. For the rally to continue, it is crucial for Nifty to break decisively above 26,000. Until that happens, expect range-bound movement within the 25,800-26,000 range.
The broader market performance also reflects a mixed sentiment, with Midcaps showing strength while Smallcaps remain under pressure. Investors should continue to monitor the 26,000 level closely for further direction, with Metals, IT, and Power sectors looking promising for the next sessions.
23 Sep
NIFTY TRADING TIPS FOR 24 SEP 2024
Overview:
Indian equity indices extended their gains for the third consecutive session, with the Nifty crossing the 25,900 mark, driven by optimism and a positive bias throughout the day. The Sensex rose by 384 points (0.45%) to close at 84,928, while the Nifty gained 148 points (0.57%), ending at a record level of 25,939.
Key Market Movements:
Nifty: The index opened with a gap-up and traded positively, rising toward the upper end of a rising channel in the 26,000-26,100 zone. While the momentum indicators on daily and hourly charts indicate caution due to divergence, the uptrend remains intact as long as there is no major price weakness. Traders are advised to use a trailing stop-loss at 25,700.
Bank Nifty: Continuing its bullish trend, Bank Nifty is approaching the 55,000 mark, with pullbacks being seen as buying opportunities. The support zone is now between 53,350-53,500 as per the principle of role reversal.
Midcaps and Smallcaps: Broader markets outperformed, with midcaps gaining 0.84% and smallcaps surging by over 1%, indicating renewed interest from market participants.
Sector Performance:
PSU Banks and Realty: These were the top-performing sectors, with the PSU Bank index rising more than 3% and the Realty index advancing by over 2%.
Other Gainers: Sectors such as auto, energy, FMCG, metal, pharma, and media all saw gains ranging from 0.5% to 1%.
IT Sector: The Information Technology sector, however, lagged, shedding 0.5% during the session.
Top Gainers:
M&M
ONGC
Bajaj Auto
SBI Life Insurance
Hero MotoCorp
Top Losers:
Eicher Motors
Divis Labs
ICICI Bank
Tech Mahindra
IndusInd Bank
Market Sentiment:
The euphoria following the recent Federal Reserve rate cut lifted domestic markets, supported by benign input costs and expectations of a shift in the RBI’s stance. Additionally, inflows from Foreign Institutional Investors (FII) added to the bullish sentiment, offsetting concerns from moderating PMI data.
Technical Outlook:
The Nifty`s psychological resistance lies at 26,000, which is expected to be a key hurdle for further upside.
On the downside, 25,800-25,850 serves as a strong support zone, suggesting that any profit-taking correction could find buyers in this range.
For Bank Nifty, the immediate support rests in the 53,350-53,500 area, with 55,000 acting as the next upside target.
Market Breadth:
Advances: 2,274 shares
Declines: 1,661 shares
Unchanged: 118 shares
Conclusion:
The Indian stock market remained in a firm uptrend, fueled by positive global cues and strong sectoral performances, particularly in PSU Banks and Realty. The market sentiment remains optimistic, though short-term caution is advised as the indices approach critical resistance levels. Investors are encouraged to maintain a trailing stop-loss to protect profits, while traders can use intraday dips as opportunities for accumulation, especially in leading sectors.
20 Sep
NIFTY OUTLOOK FOR MONDAY 23 SEP 2024
Key Indices Performance:
Sensex: Up 1,359.51 points (+1.63%) to close at 84,544.31
Nifty: Up 375.20 points (+1.48%) to close at 25,791
The Indian equity markets ended on a strong note on September 20, driven by global optimism and positive domestic sentiment. Nifty breached crucial resistance levels, marking a close near 25,800, while Sensex touched new heights above 84,500.
Market Overview: Nifty opened on a positive note, experiencing high volatility throughout the trading session but managing to hold key support levels. Nifty’s sharp rally in the last few hours pushed it to close near its upper range. On the daily chart, the index remains within a rising channel, with a short-term target of 26,000 in sight.
Bank Nifty also achieved a milestone, breaking past its previous all-time high of 53,350, closing the session near 53,800. The index is showing signs of strength and is now targeting the 55,000 level in the short term. Any intraday dips in Bank Nifty are expected to be buying opportunities.
Sectoral Performance: All sectoral indices ended in the green, led by strong performances from:
Auto: (+3%)
Banking and Financials: (+2-3%)
Realty: (+2%)
Metals: (+1-2%)
Capital Goods, FMCG, Healthcare: (+1-2%)
Sectors like auto and finance showed robust growth, likely benefiting from the Fed’s 50bps rate cut, which is expected to spur global liquidity and boost rate-sensitive sectors. Defensive sectors like FMCG also gained, driven by improving demand and lower input costs.
Top Gainers:
M&M
ICICI Bank
JSW Steel
Bharti Airtel
L&T
Top Losers:
Grasim Industries
SBI
IndusInd Bank
TCS
Bajaj Finance
Broader Market Performance:
BSE Midcap Index: +1%
BSE Smallcap Index: +1%
Broader indices participated in the rally, with both midcap and smallcap stocks rising by 1%. The market breadth was positive, with 2,346 stocks advancing, 1,434 declining, and 103 remaining unchanged.
Technical Overview: Nifty’s breakout above 25,550 resistance signals a strong bullish trend, with next resistance at 26,000. The short-term trend remains highly positive, with an expected consolidation or breather around 25,650. The market formed a decisive long bull candle on the daily chart, confirming the breakout from the previous range.
Immediate Support Levels: 25,500 - 25,450
Immediate Resistance Levels: 26,000, followed by 26,250 (as per Fibonacci extension).
Outlook: The market continues to ride the global wave, buoyed by accommodative monetary policies and strong economic cues. Sectors such as banking, financials, auto, and realty remain attractive for long positions. Despite intraday volatility, the overall trend appears to be positive, with more upside potential expected in the short term.
Conclusion: The Indian equity markets showed impressive strength despite volatile trading conditions, with key indices hitting new highs. Investors should continue to focus on index heavyweights and large midcaps for long positions, while keeping an eye on global cues, particularly from the US, which will continue to influence market direction.
Recommendations:
Use pullbacks in Bank Nifty and Auto sectors for accumulation.
Maintain long positions in FMCG and financial stocks, particularly in top-performing companies.
Short-term target for Nifty remains 26,000, with support at 25,500.
19 Sep
NIFTY OUTLOOK FOR 20 SEP 2024
The Indian equity market witnessed a volatile session on September 19, 2024, with the benchmark indices closing on a strong note. The Nifty ended the day at 25,415, up by 38 points, while the Sensex gained 236 points to settle at 83184. The rally was led by sectors such as banking, FMCG, and realty, with heavyweight stocks showing strength.
Key Market Highlights:
Nifty Performance:
The Nifty formed a Shooting Star pattern on the hourly chart, indicating a potential early sign of bearish reversal. Despite opening with a gap-up driven by positive global cues, the Nifty failed to close above the rising trendline resistance.
Support levels: 25,350 and 25,100-25,000 zone. If the Nifty breaks below these levels, further correction towards the 25,100-25,000 region is possible.
Resistance levels: 25,550-25,600 range. A convincing move above this level will indicate a bullish trend.
Sector Performance:
FMCG led the pack, with banking and realty sectors also posting strong gains.
On the downside, sectors like media, metals, telecom, PSU banks, and oil & gas experienced pressure, with some stocks shedding up to 3.5%.
The BSE Midcap index fell by 0.4%, and the Smallcap index dropped by 1%, underperforming the broader market.
Global Impact:
Indian markets reacted to the US Federal Reserve’s aggressive 50 bps rate cut announcement overnight, sparking a rally in early trades. However, profit-taking in sectors such as telecom, metals, and oil & gas reversed some of the gains.
With the Fed`s policy behind us, investor attention will now shift to the RBI’s monetary policy next month, where another rate cut may be expected to support the domestic economy.
Stock Movers:
Top Gainers: NTPC, Nestle India, Titan Company, Kotak Mahindra Bank, and Tata Consumer Products were among the key stocks leading the market rally.
Top Losers: BPCL, Coal India, ONGC, Adani Ports, and Shriram Finance faced selling pressure and ended the day in the red.
Technical Outlook:
The Shooting Star candlestick pattern at record levels, coupled with potential bearish divergence in the RSI, suggests a likely consolidation or a reversal in the coming sessions. The Nifty’s consolidation range is expected to be between 25,300-25,500, and the next directional move will be determined by a break above or below this range.
Market Sentiment:
The sentiment remains cautious, with traders advised to take a balanced approach by maintaining positions on both sides. A focus on index heavyweights like banking and FMCG sectors is recommended, as these sectors are demonstrating relative strength.
Conclusion:
The Indian equity market is currently in a consolidation phase after a record high rally. Strong support is seen at the 25,100-25,200 level, and a decisive breakout or breakdown will determine the future market direction.
Market participants should monitor the upcoming RBI monetary policy for cues on further rate cuts, which could provide a boost to sectors like banking and realty. Profit booking in midcap and smallcap stocks, which are trading at premium valuations, may continue in the short term.
16 Sep
NIFTY OUTLOOK & OPTION TRADING TIPS FOR 17 SEP 2024
Market Overview: Indian equity indices closed marginally higher on September 16, 2024. The Nifty ended at 25,383, up by 27 points (0.11%), while the Sensex closed at 82,988, rising by 97 points (0.12%). Despite a positive opening, the broader market witnessed lackluster trading, oscillating in a narrow range throughout the session. While most sectors saw buying activity, the FMCG sector faced profit booking, and the Media index emerged as the top gainer, rallying over 1%.
Key Highlights:
Nifty Movement: The Nifty traded within the 25,350 to 25,440 range.
Sensex Movement: The Sensex traded between 82,850 to 83,100.
Sectors Performance: Media, banking, and metals posted gains, whereas FMCG and IT experienced slight declines.
Technical Outlook: The formation of a small bearish candle on daily charts indicates indecisiveness between bulls and bears. The larger market texture remains bullish, but traders should expect near-term range-bound activity.
Key Support & Resistance Levels:
Support Levels: For Nifty, key support is at 25,350 and 25,300, while Sensex support lies between 82,900-82,700.
Resistance Levels: The key resistance for Nifty is at 25,500-25,575, and for Sensex, it`s between 83,300-83,600.
Market Sentiment:
A breach below 25,300 on the Nifty and 82,700 on the Sensex could change market sentiment, triggering profit-booking and exit from long positions.
Overall market breadth leaned slightly positive, supported by selective buying in midcap and smallcap segments.
Sectoral Insights:
Gainers: Banking, financials, realty, metals, and IT sectors showed strength. The Media index led sectoral gains with a 1% rise.
Laggards: FMCG stocks faced intraday profit-booking and ended slightly in the red. IT also showed minor weakness.
Strategy for Traders:
Buy on Dips: Despite the range-bound movement, the ongoing time-wise correction is seen as healthy, and traders are advised to continue with a "buy on dips" strategy. The larger bullish structure of the market favors gradual accumulation of stocks during corrective phases.
Focus Areas: Traders should focus on sectors with relative strength, particularly banking, financials, realty, metals, and IT. Accumulating stocks showing strong relative performance in these sectors is recommended.
Outlook: With the larger trend still bullish, the market is expected to consolidate in the near term, providing opportunities for selective accumulation. Caution is advised near resistance levels, and traders should remain vigilant of any downside breach below key support levels.
13 Sep
NIFTY OUTLOOK FOR TRADING 16 SEP 2024
Indian Stock Market Report – Friday 13 Sep Recap
Indian markets ended Friday’s session slightly lower as investors booked profits following Thursday’s record highs. Both key indices, Nifty 50 and S&P BSE Sensex, touched their all-time highs during the session but struggled to hold those levels due to profit-booking and sectoral weakness.
Key Indices Performance:
Nifty 50: Closed at 25,356 points, down by 0.13%. Despite this, 20 out of 50 stocks finished in positive territory. The index recorded a weekly gain of 2.03%, marking its best performance since late June.
S&P BSE Sensex: Slipped 0.09%, closing at 82,890 points. Over the week, the Sensex rose by 2.10%, driven by strong buying interest across sectors.
Sectoral Overview:
Gainers:
Nifty Realty: Up 1.75%, leading the sectoral indices.
Nifty Media: Gained 1.74%.
Nifty PSU Bank: Rose by 1.25%.
Nifty IT: Advanced by 1%, reaching a fresh all-time high. Wipro led the index with a 3.9% rise, closing at ?550 per share. Other IT stocks such as MphasiS, Coforge, L&T Technology Services, and Persistent Systems gained between 1% and 2%.
Notably, five IT stocks – MphasiS, Coforge, Persistent Systems, HCL Technologies, and LTIMindtree – reached new 52-week highs. The Nifty IT index recorded a year-to-date gain of 22.19%, outperforming the Nifty 50’s 16.68% rise.
Decliners:
Nifty Oil & Gas, Nifty FMCG, and Nifty Energy fell by over 0.6%, weighing on market sentiment.
Mid-Cap and Small-Cap Performance:
Nifty Midcap 100: Continued its positive run, rising 0.66% to close at 60,189 points – the first time it crossed the 60,000 mark. IDBI Bank led the mid-cap index with a 7.9% increase. Oracle Financial Services Software and Bandhan Bank also saw strong gains.
Nifty Smallcap 100: Increased by 0.78%, closing at 19,505 points. In total, 69 of its constituents ended in positive territory.
Jewellery Stocks Rally:
Jewellery stocks saw sharp gains as global gold prices surged to new highs. Stocks like Tribhovandas Bhimji Zaveri (TBZ), Kalyan Jewellers, Senco Gold, Motisons Jewellers, PC Jeweller, and Thangamayil Jewellery rose between 4% and 20%. The sector was buoyed by several factors:
Rising gold prices: Unhedged gold inventories benefited from inventory gains.
Favourable macro conditions: A cut in customs duties and robust wedding demand have created a positive outlook for jewellery sales, with further support expected from the upcoming festive season.
Market Sentiment:
Despite domestic CPI inflation being within the RBI’s target band, rising food prices could prompt the central bank to maintain a cautious stance on interest rates. However, increased liquidity from Foreign Institutional Investors (FIIs) and a drop in US 10-year yields are boosting market sentiment, with expectations of a possible Federal Reserve rate cut further aiding the positive outlook for domestic equities.
12 Sep
Daily Market Report: Nifty 50 and Bank Nifty Performance Analysis
Nifty 50 Overview:
The Nifty 50 index has recently broken out of its consolidation phase, signaling a rise in market optimism. The index continues to sustain above the 21-day Exponential Moving Average (EMA), which is a positive sign for near-term momentum. The Relative Strength Index (RSI) on the daily chart shows a bullish crossover, further reinforcing positive sentiment.
Key Technical Indicators:
Closing Price (September 11, 2024): 24,918.45 (-0.49%)
21-Day EMA: Nifty has been trading above this level, indicating bullish momentum.
RSI: 53 (Daily), 68 (Monthly), signaling healthy momentum.
Trend: Nifty closed above its recent consolidation high, indicating strength in the current trend.
Support and Resistance Levels:
Resistance: 25,100 – 25,145
Support: 24,735 – 24,880, with deeper support at 24,630
Upside Potential: The rally is expected to continue toward the 25,470–25,500 range.
Market Sentiment and Global Cues: Tracking global market trends, Indian benchmark indices like Sensex and Nifty are expected to open higher on Thursday. Gift Nifty indicates a positive start, trading around the 25,085 level, offering a premium of nearly 140 points from the previous close of Nifty futures.
Nifty 50 - Bearish Candlestick Pattern:
Despite the positive sentiment, the Nifty 50 formed a bearish engulfing candlestick pattern, which could indicate a potential downturn. Wednesday’s session saw a decline of 122.65 points, with the index closing at 24,918.45. The index found stiff resistance at the 25,100 level, witnessing selling pressure in the second half of the trading session.
Short-Term View: The trend remains range-bound to weak in the short term, with pullbacks towards 25,050 – 25,100 levels offering opportunities for traders to exit long positions. Further selling pressure is anticipated if the index dips below key support levels.
Support Levels: 24,880 – 24,750
Resistance Levels: 25,020 – 25,145
Bank Nifty Overview:
Bank Nifty continues to face selling pressure after failing to breach its 50-day moving average. The index ended Wednesday’s session 262.30 points lower at 51,010.00, or 0.51% down for the day.
Key Technical Indicators:
Closing Price (September 11, 2024): 51,010.00 (-0.51%)
50-Day Moving Average: Acts as a strong resistance for the Bank Nifty index.
Support and Resistance Levels:
Resistance: 51,400 – 51,500
Support: 50,850 – 50,640
A close above the 51,500 level could trigger a short covering move, with an upward target of 52,000 – 52,400. On the downside, dips toward 50,850 – 50,640 can be used to initiate fresh long positions.
Open Interest (OI) Data:
Call OI (Resistance): Highest OI observed at 25,100 and 25,200 strike prices.
Put OI (Support): Highest OI observed at the 24,700 strike price.
Conclusion:
While Nifty 50 has broken out of its consolidation phase and maintained a bullish sentiment, caution is advised due to the bearish candlestick pattern that formed in Wednesday’s session. A pullback towards key support levels could provide entry points for fresh long positions, while resistance at 25,100 remains significant.
Similarly, Bank Nifty’s performance indicates resistance at 51,500, with short-term dips offering fresh opportunities for long positions. Both indices are influenced by global market trends and Gift Nifty`s performance, suggesting a positive start to Thursday’s session.
10 Sep
NIFTY OUTLOOK FOR TOMORROW 11 SEP 2024
Overview
Indian equity markets ended on a strong note, with both Nifty and Sensex closing higher. Nifty crossed the 25,000 mark, finishing at 25,041, up 104 points (0.42%), while the Sensex gained 361 points to close at 81921.
Nifty: +104 points (0.42%) to 25,041.
Sensex: +361 points (0.44%) to 81,921.
The positive market sentiment reflects investor optimism despite global recessionary concerns, buoyed by India`s growth prospects and sliding crude oil prices.
Key Market Observations:
Nifty: Witnessed recovery from the support cluster at 24,800 – 24,850. The resistance lies in the zone of 25,100 – 25,150, where the 61.82% Fibonacci retracement level is placed. Divergent signals from daily and hourly momentum indicators suggest near-term consolidation within the range of 24,800 – 25,200.
Bank Nifty: Continued its pullback, facing resistance around 51,400 – 51,500. The support zone is located at 50,800 – 50,900.
Candle Pattern Analysis:
A small positive candle was formed on the daily chart with minor upper and lower shadows. This pattern resembles a doji, although not a classical one, indicating a cautious stance for bulls at this point. A decisive move above 25,200 could open the possibility of new all-time highs, but immediate support rests at 24,900.
Sector Performance:
Telecom and Media: Top performers, each gaining 2%.
IT, Capital Goods, Healthcare, and Power: Registered gains of 1% each.
Oil & Gas: The only sectoral index to end in the red.
Stock Movers:
Gainers: Divis Labs, LTIMindtree, Bharti Airtel, Wipro, HCL Tech.
Losers: HDFC Life, SBI Life Insurance, Bajaj Finserv, Bajaj Finance, Shriram Finance.
Market Dynamics:
Volatility: The market exhibited volatility, with a knee-jerk reaction at the opening followed by a sustainable upmove during the afternoon. However, selling pressure towards the end of the session caused the market to trim its gains.
Support and Resistance: After early intraday correction, Nifty found support around 24,900/81,400, leading to a reversal and a subsequent rally. The market closed above the critical psychological mark of 25,000/81,800. Below 25,000, the index could retest the 24,900/81,500 levels. Further downside may drag it to 24,850/81,300.
Mid & Small Caps:
Midcap: BSE Midcap index rose by 0.5%.
Smallcap: BSE Smallcap index outperformed, gaining 1.5%, ending a streak of underperformance.
Technical Outlook:
Nifty: Closed just above the key resistance level of 25,100. A strong close above this level is required for confirmation of further upside towards the 25,150-25,175 zone.
Support: Immediate support is seen at 24,900. A breach could lead to a fall towards 24,850 – 24,750.
RSI: On the daily chart, RSI shows a bearish crossover, signaling weakness. The sentiment remains weak unless the Nifty decisively closes above 25,100.
Conclusion:
The market completed one leg of the pullback rally, and the 25,000/81,800 level is now crucial for traders. A sustained move above this level could see the index bounce towards 25,150/82,200. On the downside, failure to hold above these levels might lead to retests of lower support zones.
Investors should remain cautious in the near term, as market momentum is expected to stay in a consolidation phase. A break above or below the key resistance and support levels will determine the next directional move.
09 Sep
NIFTY OUTLOOK FOR 10 SEP
Market Overview: Indian markets rebounded on September 9, snapping a three-day losing streak. The benchmark indices closed higher, with the Nifty finishing at 24,936.40, gaining 84.20 points (0.34%), while the Sensex ended 375.61 points (0.46%) up at 81,559.54.
Despite a weak opening driven by negative global cues, the domestic market found support near its 20-day Simple Moving Average (SMA) and reversed, holding its positive momentum throughout the day. This recovery is attributed to strong performances in specific sectors, particularly FMCG, which surged by 2%, offsetting losses in Energy, Oil, and Gas sectors.
Technical Analysis:
The formation of a small bullish candle on daily charts, coupled with reversal patterns on intraday charts, suggests the pullback may continue.
Key support levels: 24,800 for Nifty and 81,000 for Sensex.
Resistance levels: Nifty may face hurdles at 25,000–25,125, and the Sensex around 81,800–82,200. A breach below 24,800 could expose the market to downside risks, prompting traders to exit long positions.
Sectoral Performance:
FMCG: The best-performing sector, rising by 2%, driven by gains in Hindustan Unilever (HUL), ITC, and Britannia.
Banking: Positive momentum from ICICI Bank and Shriram Finance helped the Bank Nifty recover from intraday lows. Bank Nifty support is at 50,500-50,350, with resistance at 51,375-51,450.
Energy, Oil & Gas: These sectors were the weakest performers, declining by over 1%.
Mid and Smallcap: Both segments underperformed, with the midcap index down by 0.3% and the smallcap index shedding 0.6%.
Top Gainers:
HUL
Shriram Finance
ICICI Bank
ITC
Britannia Industries
Top Losers:
ONGC
Tech Mahindra
Hindalco Industries
NTPC
BPCL
Market Outlook: The bullish reversal pattern and the market’s ability to hold support near the 20-day SMA indicate that the pullback could extend further, with immediate targets of 25,000-25,125 on the Nifty. The support zone remains firm between 24,800–24,750, which will act as a critical threshold for maintaining the current trend. The upcoming data on US inflation and jobless claims will play a decisive role in shaping the global market sentiment.
Summary: Today`s positive close and recovery suggest a potential continuation of the uptrend in the short term, with key sectors like FMCG and banking leading the charge. However, weakness in Energy, Oil & Gas, and global recession fears may create headwinds in the coming sessions.
Traders are advised to watch the key support and resistance levels closely, as market volatility remains high amidst global uncertainty.
24 Aug
NIFTY OUTLOOK FOR 26 AUG 2024
Overview:
The Indian benchmark indices ended flat in a volatile trading session on August 23. The market sentiment was cautious as investors awaited the speech of FED Chair Jerome Powell for signals on the future interest rate path.
Sensex: Up 33.02 points or 0.04% to close at 81,086.21.
Nifty: Up 11.70 points or 0.05% to close at 24,823.20.
Market Sentiment:
The market showed mixed performance due to global uncertainties, leading to oscillations around a flat trajectory.
The auto sector outperformed as it gears up for festive season demand with multiple launches.
Most sectoral indices were in the red, indicating caution among investors.
Technical Analysis:
Nifty opened flat and consolidated during the day, closing with minor gains of ~12 points.
Nifty has closed positive for the seventh consecutive trading session, signaling a stretched upmove without a significant pullback.
The hourly momentum indicator showed a negative crossover along with negative divergence, suggesting a possible intraday dip. Caution is advised for long positions.
Nifty is nearing the 78.6% retracement mark at 24,830, which could restrict further upside. The overall trend remains sideways with a consolidation range between 24,200 and 25,000.
Bank Nifty:
The Bank Nifty also experienced range-bound price action, closing marginally in the red.
The index may resume its upmove after a few days of consolidation, with an expected upside towards 51,500 – 51,900 from a short-term perspective.
Traders should maintain a stop loss at 50,400 for long positions.
Sector Performance:
Top Gainers: Bajaj Auto, Coal India, Tata Motors, Sun Pharma, and Bharti Airtel.
Top Losers: Wipro, ONGC, Divis Labs, LTIMindtree, and Infosys.
BSE Midcap Index: Down 0.6%.
Smallcap Index: Ended flat.
Sectoral Performance:
Auto: Up 1%.
Metal, Realty, Media, PSU Bank, IT: Down 0.5% to 2.5%.
Outlook:
On Monday, markets are likely to react to global cues post the US Fed speech.
Traders are advised to maintain a positive outlook unless Nifty decisively breaks below 24,500.
The banking sector remains key to the next directional move, while other sectors are currently balancing each other.
Traders should avoid aggressive positions and focus on stock-specific strategies.
22 Aug
NIFTY OUTLOOK & FREE TRADING TIPS FOR 23 AUG 2024
Market Overview:
Indian benchmark indices concluded the trading session on a positive note, with the Nifty closing above 24,800. The Sensex gained 147 points, closing at 81053, while the Nifty was up by 41 points, closing at 24811.
Sector Performance:
Top Gainers:
Consumer, Metal, and PSU Banks: These sectors saw significant buying interest, driving the market upwards.
Top Performing Stocks:
Grasim Industries
Tata Consumer Products
Tata Steel
Bharti Airtel
Apollo Hospitals
Top Losers:
Selective IT and Energy Stocks: These sectors experienced intraday profit booking at higher levels, leading to marginal declines.
Underperforming Stocks:
Tata Motors
Dr Reddy`s Labs
NTPC
Wipro
M&M
Sectoral Indices Performance:
Power Index: Declined by 1%.
Pharma, Oil & Gas, Auto, IT: Ended marginally lower.
Bank, FMCG, Metal, Realty, Telecom: Gained between 0.5% and 1.4%.
BSE Midcap and Smallcap Indices: Both rose by 0.5%.
Technical Analysis:
Nifty:
The Nifty opened with a gap-up but faced intraday profit booking, leading to the formation of a small bearish candle on the daily charts, indicating indecisiveness between bulls and bears.
The index encountered resistance at the previous downside gap zone of 24,850-25,000, closing just below this range.
Immediate support is seen at 24,720, with key resistance between 24,900-24,950.
The short-term trend remains positive, but overbought conditions could lead to range-bound activity. A decisive breakout above the resistance could push the Nifty towards 25,100 in the near term.
Bank Nifty:
Bank Nifty continued its positive momentum, closing above key daily moving averages. The daily momentum indicator shows a positive crossover, signaling a potential upmove towards 51,500-51,900. A stop loss of 50,400 should be maintained for long positions.
Global Cues:
The domestic market`s modest gains were influenced by positive global sentiments. Weakness in the US non-farm payroll data has increased the likelihood of an interest rate cut by the US Federal Reserve in September, boosting investor sentiment.
Market Outlook:
Trading Strategy:
Given the current market conditions, a "buy on dips and sell on rallies" approach is recommended.
Traders should monitor the key support zones of 24,750-24,700 (Nifty) and 80,800-80,650 (Sensex). A breach below these levels could change market sentiment, leading to a potential exit from long positions.
Market Sentiment:
Despite the gains, the market exhibited a lackluster movement at higher levels, closing with modest gains. The narrow range movement suggests consolidation, with no significant reversal patterns emerging at the highs.
Conclusion:
The Indian equity market continues to show resilience with positive momentum. However, with the Nifty nearing critical resistance levels and showing signs of consolidation, traders should remain cautious and adopt a strategic approach to capitalize on potential market movements in the coming sessions.
21 Aug
NIFTY OUTLOOK & FREE TRADING TIPS FOR 22 AUG 2024
Overview
Indian benchmark indices ended the trading session on a positive note amidst a volatile environment. The Sensex climbed 102.44 points, or 0.13%, closing at 80,905.30, while the Nifty advanced 71.37 points, or 0.29%, to settle at 24,770.20. Despite the initial flat start, selective buying towards the final hour of trading helped push the indices to close near their day`s highs.
Market Performance
Nifty: The Nifty opened flat and traded within a narrow range for most of the session. However, a late surge in buying activity lifted the index by 71 points to close at 24,770.
Sensex: The Sensex mirrored Nifty`s movement, closing with a modest gain of 102 points.
Sectoral Indices
Gainers:
FMCG: The FMCG sector outperformed, gaining over 1.3% as investors shifted towards defensive stocks.
Pharma: Pharma stocks also saw positive movement, rising 0.91%.
Metals: The metal sector posted decent gains of around 0.5%.
Telecom & Media: Both sectors registered gains between 0.5% and 1%.
Losers:
Realty: The Realty index was the worst performer, dropping 1.31%.
Banking: The banking sector remained under pressure, dipping by 0.2%, limiting the upside for the broader market.
Top Performers
Divis Labs: Leading the pack, Divis Labs saw significant buying interest.
Titan Company: Also performed well, contributing to the day`s gains.
SBI Life Insurance, Cipla, Grasim Industries: Other notable gainers.
Lagging Stocks
Tech Mahindra: Was among the top losers.
UltraTech Cement, Tata Steel, Power Grid Corp, HDFC Bank: These stocks also saw profit-taking.
Midcap and Smallcap Performance
Midcaps: The BSE midcap index rose by 0.4%, aligning with the broader market trend.
Smallcaps: The smallcap index outperformed with a gain of nearly 1%.
Technical Analysis
Nifty Levels:
Support: Immediate support for Nifty is observed at the 24,450-24,600 zone.
Resistance: Nifty faces resistance at 24,850 and could advance to the 25,000 level. The next resistance is anticipated at 24,960, with potential movement towards 25,100 in the short term.
Momentum: A negative divergence is developing on the momentum indicator, suggesting that while the trend remains positive, the upward movement might slow down with possible intraday pullbacks.
Bank Nifty:
Support: The Bank Nifty found crucial support at the 50,350-50,300 zone.
Upside Target: As long as this support holds, the index could rally towards the 51,000-51,500 levels. A stop loss of 50,300 is recommended for long positions.
Global Cues
Global markets maintained a cautious stance ahead of the FOMC minutes release. The expectation of a potential rate cut in the US remains high, driven by declining inflation and moderated economic growth. This global sentiment is likely to influence Indian markets, making it essential for participants to monitor developments in the US closely.
Conclusion
The Indian market continues its gradual ascent, supported by sectoral rotation and strong domestic institutional investor (DII) flows. While defensive sectors like FMCG and pharma lead the rally, caution prevails due to profit-taking in banking stocks. The Nifty is poised to challenge higher resistance levels, with a short-term target of 25,000+ on the horizon. However, traders should be prepared for potential pullbacks and closely watch key support levels.
This report provides a comprehensive outlook on the market trends, sectoral performances, and technical insights, helping participants make informed decisions.
12 Aug
NIFTY OUTLOOK & OPTION TRADING TIPS FOR 13 AUG 2024
Overview: Indian benchmark indices ended on a flat note in a highly volatile session on August 12. The Sensex closed down by 56 points, or 0.07%, at 79648, while the Nifty ended 20 points lower, at 24347. This session was marked by mixed signals and fluctuations in both directions, ultimately leaving the indices relatively unchanged.
Market Sentiment: The overall market sentiment remained sideways to weak, with Nifty closing below the critical 21-day Exponential Moving Average (EMA). The Relative Strength Index (RSI) indicated weak momentum with a bearish crossover, suggesting that the market might continue to be a sell-on-rise scenario as long as it remains below the 24,500 level. On the downside, support is positioned at 24,150.
Sectoral Performance:
Gainers: The Realty sector led the gains, rising over 1.35%, followed by the Metal sector. The broader indices, including mid and small caps, outperformed the benchmark indices, closing slightly in the green.
Losers: The Media index was the major laggard, shedding nearly 2%. The FMCG, Power, PSU Bank, and Media sectors were down by 0.5-2%, while sectors like Bank, Telecom, IT, Oil & Gas, Metal, and Realty saw gains between 0.3-1%.
Technical Analysis:
Nifty faced resistance at the short-term 20-day EMA at 24,400, struggling to sustain its position above this level. This resistance, coupled with pressure from select heavyweight stocks, indicates that the market may remain under pressure until there is a decisive movement in banking majors.
The formation of a long-legged Doji candlestick pattern after testing the higher end of a consolidation range suggests indecision among traders. A firm close above the 24,450-24,470 zone is essential to resume the uptrend, while support seems firm at 24,200.
For day traders, the market`s current texture is non-directional, making level-based trading the ideal strategy. The immediate breakout zone for bulls is at 24,400/79,850. A move above this level could lead to further gains up to 24,500-24,550/80,100-80,400. On the flip side, a drop below 24,300/79,500 could change the sentiment, potentially leading the market to retest 24,200-24,170/79,200-79,000 levels.
Key Influencers:
The ongoing Adani-Hindenburg-SEBI saga created an overhang on the market, with early trades reflecting the impact of these allegations. However, indices managed to recover during the day, only to lose ground again due to selective profit-taking.
Global cues will play a crucial role in the market`s direction, alongside domestic factors such as anticipated ease in CPI inflation supported by a good monsoon. However, upside risks remain due to firm oil prices and volatility in food inflation.
Conclusion: The Indian market closed the day largely flat after a session filled with volatility and mixed signals. While certain sectors like Realty and Metal provided some support, pressure from other sectors, combined with external factors like the Adani-Hindenburg-SEBI saga, kept the indices from gaining significant ground. Traders are advised to adopt a cautious approach, with a focus on hedging and level-based trading strategies in the near term.
08 Aug
NIFTY OUTLOOK & OPTION TRADING TIPS FOR 9 AUG 2024
On August 8, 2024, the Indian stock markets experienced a highly volatile session, with both the Sensex and Nifty ending in the red. The Nifty50 fell below the critical 24,150 level, closing at 24,117, down 180 points or 0.74%. The Sensex also mirrored this trend, closing 581.79 points lower at 78,886.22, a decline of 0.73%.
Market Performance
Sensex: 78,886.22 (-581.79 points, -0.73%)
Nifty50: 24,117 (-180.50 points, -0.74%)
BSE Midcap Index: -0.4%
BSE Smallcap Index: Flat
Sectoral Analysis
The market was primarily dragged down by weak performances in key sectors like IT, metals, and energy. Conversely, the pharmaceutical sector showed resilience, ending as the best performer of the day.
Top Performers:
Pharma: Demonstrated the best performance amidst a largely negative market, benefiting from defensive positioning by investors.
Healthcare & Media: Managed to close in positive territory, though gains were marginal.
Underperformers:
Information Technology (IT): Suffered significant losses, with heavyweights like Infosys contributing to the decline.
Metals: Faced selling pressure due to global demand concerns.
Oil & Gas: Declined by 1-2%, largely due to concerns over global energy demand.
Realty: Followed the broader market`s downward trajectory.
Key Movers
Losers:
LTIMindtree: Among the top losers in the Nifty due to the overall weakness in the IT sector.
Grasim Industries, Asian Paints, Power Grid Corp, Infosys: These companies also faced significant selling pressure.
Gainers:
HDFC Life, Tata Motors, SBI Life Insurance: Managed to post gains amidst the market downturn.
HDFC Bank, Cipla: Provided some support to the indices with positive performances.
Market Sentiment and Key Drivers
Global Cues:
Weak global markets contributed to the negative sentiment on Dalal Street. Concerns over a potential U.S. economic slowdown and the possibility of the Federal Reserve cutting rates sooner than expected led to caution among investors.
RBI Policy Decision:
The Reserve Bank of India`s decision to maintain its current policy stance, coupled with an upward revision in the Consumer Price Index (CPI) and a more cautious growth forecast for Q1, weighed heavily on the market.
Technical Analysis:
Resistance and Support Levels:
Resistance: Nifty is facing resistance around the 24,350 level. A breach of this level is necessary to instill confidence among the bulls.
Support: The downside seems protected near the 23,965 level, close to the 50-day moving average (50DMA). A decisive break below 23,900 could lead to a further decline.
Market Oscillation: The index is oscillating in a wide range, with a breakout on either side likely to determine the market`s direction in the near term.
Global Concerns:
Investors remained cautious due to ongoing global uncertainties, particularly regarding U.S. economic data and its implications for global markets. The anticipation of a potential recession in the U.S. has added to the market`s volatility.
Conclusion and Outlook
The Indian markets closed on a weaker note on August 8, reflecting the broader global market sentiment and domestic macroeconomic concerns. The Nifty’s inability to sustain gains from the previous session highlights the fragility of the current market environment.
Given the ongoing volatility, traders and investors are advised to adopt a cautious approach. Hedging strategies could be particularly beneficial in navigating the uncertain market conditions. The key levels to watch in the coming sessions will be the support at 23,965 and the resistance at 24,350. A breakout from this range could provide a clearer direction for the market`s next move.
Recommendations
Traders: Consider adopting a hedged strategy, focusing on managing risks amidst the volatile environment. Watch for a breakout of the 23,965–24,350 range for directional trades.
Investors: Defensive sectors like pharma may provide some stability in portfolios. It may be prudent to avoid heavy exposure to IT and metals until there is greater clarity on global economic conditions.
Market Participants: Stay updated on global developments, particularly U.S. economic data, as these could significantly impact market sentiment in the short term.
07 Aug
NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 8 AUG 2024
Overview
On August 7, 2024, Indian benchmark indices ended on a strong note, with the Nifty closing at 24,297.50, up 305 points or 1.27%, and the Sensex finishing at 79,468.01, up 874.94 points or 1.11%. This rally came ahead of the anticipated RBI policy outcome, with all sectoral indices closing in the green. The broader market outperformed, with both the BSE Midcap and Smallcap indices rising more than 2%.
Market Performance
Nifty 50: Up 305 points or 1.27% at 24,297.50
Sensex: Up 874.94 points or 1.11% at 79,468.01
Market Breadth:
Advancers: 2,696
Decliners: 698
Unchanged: 72
Sectoral Performance
All sectors ended in the green, with significant contributions from:
Metals: Top performer
Pharma
Oil & Gas
Healthcare
Media
Power
Telecom
Capital Goods
Key Gainers and Losers
Top Gainers:
Coal India
Adani Ports
Power Grid Corp
Cipla
Wipro
Top Losers:
IndusInd Bank
Eicher Motors
Britannia
Tech Mahindra
Titan Company
Broader Market Performance
BSE Midcap Index: Up over 2%
BSE Smallcap Index: Up over 2%
Technical Analysis
Nifty witnessed a good recovery after three days of decline, trading positively throughout the session and closing above the 40-day average of 24,138. Key observations include:
Candlestick Pattern: The formation of a long-legged DOJI pattern, indicating indecisiveness.
Support Levels: Immediate support at 23,960.
Resistance Levels: Immediate hurdles at 24,520 – 24,550; a decisive close above 24,500 needed for sustained rebound.
Volatility: India VIX has cooled off, indicating a decrease in market volatility.
Bank Nifty
Performance: Witnessed a late surge, closing well above intraday lows.
Support Levels: Crucial support zone at 49,800 – 49,700.
Resistance Levels: Potential for pullback to 50,600 – 50,800.
Global Influences
Global factors and headwinds persist, which could continue impacting Indian markets in the coming days. Key global influences include:
Bank of Japan: Deputy Governor`s reassurance of not raising interest rates during financial instability led to a rebound in global markets.
Middle East Tensions: Risk-off sentiment due to rising tensions could lead to intra-day volatility.
Market Outlook
While the market experienced a relief rally today, ongoing global uncertainties suggest potential for further volatility. The RBI policy outcome, expected on Thursday, will be crucial, with the committee likely to maintain the current interest rate. Interest-sensitive sectors and stocks will be in focus.
Conclusion
The Indian stock market showed strong resilience and recovery on August 7, driven by positive global cues and broad-based buying across sectors. Despite the rally, market participants should maintain a cautious outlook due to potential volatility and global uncertainties. The Nifty`s ability to sustain above the key resistance levels will be critical for a continued upward trajectory.
06 Aug
NIFTY OUTLOOK FOR 7 AUG 2024
Market Summary
Nifty50: Closed at 23,992.55, down by 63.05 points or 0.26%.
Sensex: Closed at 78,633.56, down by 125.84 points or 0.16%.
Key Observations
The market opened strongly, reaching higher levels but failed to hold onto the gains.
Selling pressure intensified in the second half, leading to the Nifty50 ending the session in the red.
A mixed trend was observed across various sectors:
Top Gainers: Realty and IT.
Top Losers: PSU Banks, followed by Auto.
Broader markets underperformed the frontline indices with:
Midcaps: Down by 0.61%.
Smallcaps: Down by 0.39%.
Sector Performance
Auto, Bank, Oil & Gas: Down by 0.5% each.
IT, Metal, Realty: Up by 0.3-0.8%.
Notable Stocks
Top Nifty Losers: HDFC Life, SBI Life Insurance, Shriram Finance, BPCL, SBI.
Top Nifty Gainers: Britannia Industries, JSW Steel, HUL, L&T, Tech Mahindra.
Market Outlook
Near-term Outlook for Nifty50: Bearish unless there is a convincing move above 24,400.
Immediate Support: 23,880 (50DMA support).
Conclusion
Indian benchmark indices experienced a highly volatile session, closing marginally lower. The broader market weakness and the mixed trend across sectors indicate caution among investors. The near-term outlook for Nifty50 remains bearish unless it can break above the 24,400 level convincingly, with immediate support at 23,880.
05 Aug
NIFTY OUTLOOK FOR AUG 2024
Overview
On August 5, Indian benchmark indices experienced a significant decline due to a combination of global economic concerns and geopolitical tensions. The Nifty index closed at 24,055.60, down 662.10 points or 2.68%, and the Sensex closed at 78,759.40, down 2,222.55 points or 2.74%. The market was heavily impacted by global cues, leading to a massive sell-off across various sectors.
Key Indices Performance
Sensex: 78,759.40 (-2,222.55 points, -2.74%)
Nifty: 24,055.60 (-662.10 points, -2.68%)
Sectoral Indices Performance
All sectoral indices ended in the red, with the most significant declines observed in the auto, metal, capital goods, oil & gas, power, media, and realty sectors, each down by 4%.
Market Breadth
Advances: 471 shares
Declines: 3,082 shares
Unchanged: 88 shares
Major Losers
Tata Motors
Adani Ports
ONGC
Hindalco
Tata Steel
Major Gainers
HUL
Nestle
Tata Consumer
HDFC Life
Broader Indices Performance
BSE Midcap Index: -3.6%
BSE Smallcap Index: -4.2%
Analysis
Domestic and Global Influences
The sharp decline in the Indian markets was primarily driven by several global factors:
Recession Fears in the US: Weak jobs data from the US raised concerns about a potential recession.
Interest Rate Hike in Japan: The increase in interest rates led to a significant impact on the Yen-carry trade.
Middle East Conflict: Escalating tensions in the Middle East added to the global uncertainty.
These factors contributed to a massive sell-off, with investors trimming their trading positions and adopting a cautious approach.
Technical Analysis
Nifty: Closed below the crucial level of 24,075, violating the uptrend. The index also closed below the 20-day moving average of 24,575, indicating weakness.
Fibonacci Retracement Levels: Key levels to watch are 23,628 and 23,280 (20-week moving average).
Immediate Resistance Levels: 24,300 – 24,350.
Support Levels: Key support at 23,800 and further support expected at 23,250 – 23,400 zone.
Bank Nifty
Performance: Closed below the previous swing low of 50,440, suggesting a continuation of the fall.
Support Levels: Likely to drift lower towards 47,650 – 47,500 (200-day moving average).
Resistance Levels: 50,400 – 50,500.
Recommendations
For Traders
Trim Trading Positions: Due to the high volatility and global uncertainties.
Strict Stop Losses: Essential for both long and short positions.
Option Writers: Exercise caution due to the increased market volatility.
Hedged Approach: Prefer a hedged trading strategy to mitigate risks.
For Investors
Long-Term Perspective: View the current correction as an opportunity to accumulate quality stocks.
Phase-Wise Allocation: Consider allocating funds in a phase-wise manner over a 2/3-year horizon.
Conclusion
The Indian markets are experiencing significant volatility due to global economic and geopolitical factors. While the immediate outlook remains cautious, historical trends suggest resilience and potential for recovery in the long term. Traders should adopt a cautious and hedged approach, while investors may look for opportunities to accumulate quality stocks during this correction.
02 Aug
NIFTY WEEKLY REPORT & OUTLOOK FOR 5 AUG 2024
Overview
The Indian benchmark indices ended their five-day winning streak with a significant decline. The Nifty index closed below the crucial 24,750 mark, driven by a global sell-off and lack of new upward triggers.
Key Indices Performance
BSE Sensex: Down 885.60 points (1.08%) to close at 80,981.95
NSE Nifty: Down 293.20 points (1.17%) to close at 24,717.70
Market Analysis
The market experienced a sharp decline, with the Nifty forming a spinning top pattern on the daily timeframe. The Relative Strength Index (RSI) indicator showed a downward trend, suggesting a bearish crossover. The market sentiment appears to favor "sell on rise" traders as long as the Nifty remains below 24,800.
Support and Resistance Levels:
Nifty Support: 24,530 and 24,400
Nifty Resistance: 24,820 to 24,850
Bank Nifty Performance:
Consolidated around the 40-day moving average (51,318), with less intensity in the fall compared to Nifty.
Bank Nifty Support and Resistance Levels: 52,550 to 50,440
Sectoral Performance
Outperformers: BSE Power, BSE Healthcare, BSE Oil & Gas, and BSE Power
Underperformers: BSE Realty, BSE Auto, BSE IT, and BSE FMCG
Market Breadth
Advances: 1426 shares
Declines: 1960 shares
Unchanged: 83 shares
Key Gainers and Losers
Top Nifty Gainers: Divis Labs, HDFC Bank, Dr Reddy`s Labs, Sun Pharma, Kotak Mahindra Bank
Top Nifty Losers: Eicher Motors, Maruti Suzuki, Tata Motors, Hindalco Industries, JSW Steel
Midcap and Smallcap Performance
BSE Midcap Index: Down 1%
BSE Smallcap Index: Down 0.5%
Domestic and Global Factors
Domestic Data: India Manufacturing PMI at 58.1, GST collection growth of 10%
Global Influences:
US Fed kept rates unchanged with a hint at a potential rate cut in September.
Bank of England announced a 25 basis points rate cut.
Weak earnings from the US IT sector.
Concerns over a rise in US unemployment and potential further rate hikes by the Bank of Japan.
Slowdown in China’s growth.
Future Outlook
Nifty: Expected to retrace towards 24,600 to 24,550, with support from the 20-day moving average and the 38.2% Fibonacci retracement level.
Bank Nifty: Likely to remain range-bound, with crucial levels to watch between 52,550 and 50,440.
The recent broad-based sell-off indicates market exhaustion and lack of new triggers for further upward movement. Investors will closely monitor Q1FY25 earnings and global equity market trends in the coming weeks.
01 Aug
NIFTY OUTLOOK FOR 2 AUG 2024
Overview: Indian benchmark indices extended their winning streak for the fifth consecutive session on August 1, 2024. The Sensex closed up by 126.21 points (0.15%) at 81,867.55, while the Nifty increased by 59.70 points (0.24%) to close at 25,010.90. This marks the first time the Nifty has closed above the 25,000 level.
Market Movement:
The Nifty remained range-bound throughout the day, reflecting a cautious sentiment among traders. However, the index closed above the key psychological level of 25,000, supported by strong corporate earnings and positive global cues, particularly from the US markets.
The Sensex also reached new highs, nearing the 82,000 mark, driven by gains in select sectors such as metals, oil & gas, and power.
Technical Analysis:
The Nifty’s close above 25,000 signifies a continuation of the upward trend, breaking out of a recent sideways consolidation phase. The Relative Strength Index (RSI) indicates a bullish crossover, although it is approaching the overbought zone, suggesting a potential for profit booking.
Immediate support for the Nifty is at 24,900, with resistance levels at 25,100 and 25,250. The index has formed a Spinning Top candlestick pattern, which often indicates indecision in the market.
Sectoral Performance:
Gainers: Energy, metals, oil & gas, and power sectors were among the top performers. Stocks like Coal India, Power Grid Corp, Shriram Finance, Dr. Reddy`s Labs, and ONGC led the gains in the Nifty index.
Losers: The auto, capital goods, IT, media, telecom, PSU Bank, and realty sectors experienced declines, with stocks such as M&M, Hero MotoCorp, Tata Steel, Bajaj Finserv, and SBI being the major laggards.
The BSE midcap and smallcap indices shed nearly 1% each, indicating a divergence in performance between large-cap and smaller-cap stocks.
Global and Domestic Factors:
Positive cues from the US markets, influenced by indications from the Fed Chair about a possible rate cut in September, contributed to the positive sentiment in Indian markets. However, weak European market performance and mixed results from Asian indices limited the upside.
Domestically, escalating geopolitical tensions in the Middle East and rising crude oil prices added to the market`s cautious tone. This was further exacerbated by profit-taking in broader markets and underperformance in key sectors like banking.
Outlook:
The market outlook remains cautiously optimistic, with traders encouraged by global market buoyancy and strong corporate earnings. However, the underperformance of banking stocks and profit-taking in broader indices pose challenges to sustaining the rally.
The Nifty needs fresh triggers to break past its immediate resistance at 25,100. The approach remains to "buy on dips," with a focus on careful stock selection to navigate the current market dynamics.
31 Jul
Daily Market Report - July 31
Market Overview
Indian benchmark indices continued their positive trend for the fourth consecutive session. The Nifty closed at 24,951.20, up by 93.90 points or 0.38%, while the Sensex ended the day at 81,741.34, gaining 285.94 points or 0.35%. The market maintained a positive bias throughout the day, closing near the session`s high.
Technical Analysis
Nifty:
A small positive candle formed on the daily chart with a minor upper shadow, indicating an attempt at an upside breakout around the 25,000 mark.
The pattern of higher tops and bottoms continues, with no immediate signs of a reversal. A decisive move above 25,100 could lead to a sharp upside, with immediate support at 24,750 levels.
On the hourly chart, the Nifty has given a consolidation breakout, and the RSI indicates a bullish crossover on both the hourly and daily timeframes. A fresh leg of bullishness is expected above 25,000, with support at 24,900. A break below this level could see a correction towards 24,750.
Bank Nifty:
The index remained range-bound, especially ahead of the Federal Reserve meeting on the rate decision. It stayed below the 21 EMA, with the daily RSI showing a bullish crossover.
A sustained trade above 51,600 might trigger a rally towards 52,000-52,200, while support is placed at 51,200-51,000.
Sector Performance
Top Performers:
Metals, Pharma, and Media: These sectors saw the highest gains, with each adding approximately 1%.
BSE Midcap Index: Added nearly 1%, showing strong performance.
Underperformers:
PSU Banking Sector: Ended the session with a loss of 0.43%.
Smallcap Index: Ended marginally lower.
Top Gainers & Losers
Top Gainers:
NTPC
Asian Paints
BPCL
JSW Steel
Tata Motors
Top Losers:
Britannia Industries
Dr Reddy`s Labs
Tata Consumer
Reliance Industries
Grasim Industries
Market Breadth
Advances: 1,828 shares
Declines: 1,613 shares
Unchanged: 78 shares
Outlook
The Nifty is approaching the psychological barrier of 25,000. A sustained move above this level could push the index further towards 25,200, while on the downside, immediate support is seen at 24,800.
Bank Nifty`s movement will likely be influenced by external factors, including the Federal Reserve`s rate decision. A break above 51,600 could trigger a rally, with support at 51,000.
30 Jul
NIFTY OUTLOOK FOR 31 JULY 2024
Market Overview
The domestic market ended relatively flat, largely due to profit-booking at higher levels. Despite the cautious sentiment, optimism was bolstered by expectations of dovish comments from the US Federal Reserve and the Bank of England (BoE) in their upcoming policy meetings this week. Additionally, investors are keenly observing the BoE and the Bank of Japan (BoJ), anticipating contrasting policy moves. The BoE is expected to consider lowering rates in response to rising unemployment and easing inflation, whereas the BoJ may increase rates due to surging inflation, potentially introducing market volatility.
Index Performance
The indices experienced a mixed session:
Nifty50: After a muted opening, the Nifty50 surged higher, led by the Energy and Auto sectors. However, the gains were pared towards the session`s end, with the index settling at 24,857.30, up 21.20 points or 0.09%. The formation of a DOJI candlestick pattern suggests indecisiveness between the bulls and bears. The index faces a strong psychological resistance at 25,000, with immediate support at 24,800 and 24,660.
Sensex: The Sensex closed marginally higher, gaining 99.56 points or 0.12%, ending at 81,455.40.
Broader Markets: The broader markets continued their outperformance streak:
BSE Midcap Index: Rose by 0.3%.
BSE Smallcap Index: Advanced by 0.9%.
Sectoral Performance
Except for the FMCG and Healthcare sectors, all other sectoral indices ended in the green:
Top Gainers: Power, Realty, and Auto sectors led the gains, up between 0.5%-1%.
Sectoral Losers: FMCG and Healthcare sectors underperformed.
Top Gainers and Losers
Top Nifty Gainers:
BPCL
NTPC
Tata Motors
Power Grid Corp
Asian Paints
Top Nifty Losers:
Cipla
LTIMindtree
SBI Life Insurance
Grasim Industries
Sun Pharma
Market Sentiment
The market sentiment remains cautious but optimistic, influenced by global cues and expectations of policy announcements. The mixed performance across sectors indicates a careful positioning by investors, balancing between potential gains and risk aversion.
Outlook
The market`s near-term direction will likely be influenced by the upcoming policy decisions from major central banks. Investors are advised to closely monitor global economic indicators and central bank comments for cues on market direction. The psychological resistance at 25,000 for the Nifty50 remains a crucial level to watch, with significant support at 24,800 and 24,660.
27 Jul
STOCK MARKET TRADING TIPS FOR 29 JULY 2024
Market Summary Report - July 26, 2024
Key Highlights
Sensex and Nifty 50 Performance:
Sensex jumped 1,292.92 points (1.62%) to settle at 81,332.72.
Nifty surged 428.75 points (1.76%) to close at an all-time high of 24,834.85.
Both indices snapped a five-day losing streak.
Market Drivers
Heavy Value-Buying:
The rebound was driven by value-buying at lower levels.
Blue-chip stocks like Infosys, Bharti Airtel, and Reliance Industries led the recovery.
Positive Global Cues:
Better-than-expected US GDP growth bolstered global demand outlook.
US CPI data showed moderate inflation, fueling hopes for Federal Reserve rate cuts.
Sector Performance
Broad Market Rally:
BSE midcap gauge rose 2.12%, and the smallcap index rallied 1%.
Gains observed across sectors, with Metals and IT leading.
Midcaps outperformed broader indices.
Investor Sentiment
Market Capitalisation:
Investors` wealth soared by ?7.10 lakh crore.
Market cap of BSE-listed firms hit an all-time high of ?4,56,92,671.33 crore ($5.46 trillion).
Buy on Dip Strategy:
Investors refocused on quarterly earnings and stock-specific trends.
Technical Analysis
Nifty 50:
Experienced a downward consolidation breakout on the daily chart.
Closed above the 21 EMA, signaling a bullish trend.
Potential rise towards 25,250 if sustained above 24,500.
Bank Nifty:
Recovered 857 points from the day`s low to close at 51,295.95.
An outside day pattern suggests a possible price expansion.
Reclaimed the 50-period EMA, indicating a short-term bullish reversal.
Resistance at 51,500 could lead to a rally towards 52,500; support at 51,000.
Global Market Context
US Markets:
Dow Jones up nearly 2% at 40,694.
S&P 500 rallied 1.43% to 5,476; Nasdaq Composite up 1.22% at 17,392.
Positive economic data with US GDP exceeding expectations.
GIFT Nifty:
Traded flat at 24,944 after a bullish run in Indian markets.
Conclusion
The domestic equity markets showed a strong recovery, driven by strategic buying and positive global economic signals. Technical indicators suggest a continuation of the bullish trend, with potential upside in both Nifty and Bank Nifty indices. Investors are encouraged by the overall economic data and market dynamics, pointing towards a positive outlook in the near term.
25 Jul
NIFTY OUTLOOK FOR 26 JUL 2024
Overview
Indian benchmark indices exhibited a volatile trading session, ultimately closing nearly flat on July 25, 2024. The Sensex dipped by 109.08 points, or 0.14%, to settle at 80,039.80, while the Nifty decreased by 7.40 points, or 0.03%, closing at 24,406.10.
Market Performance
Opening: The session started with a notable gap-down, driven by weak global cues and selling pressure in major banking stocks.
Recovery: A recovery in select heavyweight stocks helped minimize losses, enabling the indices to close near the flat line.
Sector Performance:
Gainers: The energy, auto, and pharma sectors performed well amidst the choppy market conditions.
Losers: The metal and banking sectors faced significant downward pressure.
Sectoral Highlights
Top Gainers:
Tata Motors
ONGC
SBI Life Insurance
BPCL
Sun Pharma
Top Losers:
Axis Bank
Nestle India
Titan Company
ICICI Bank
Tata Steel
On the sectoral front:
Gainers: Auto, capital goods, power, oil & gas, healthcare, and media sectors rose by 0.5-3%.
Losers: Bank, IT, metal, realty, and telecom sectors declined by 0.5-1%.
Broader Market
The BSE midcap and smallcap indices ended marginally lower, reflecting cautious investor sentiment.
Market Insights
Support and Resistance Levels: The Nifty demonstrated resilience, with strong support at the 24,200 level. This support level is crucial for maintaining the uptrend. Conversely, the level of 24,560 is seen as an immediate hurdle.
Global Influence: An overnight slump in US equities led to profit-taking in domestic markets, particularly in banking, IT, metals, and realty stocks. However, buying in oil & gas and automobile stocks towards the end of the session helped recover most losses.
Valuation Concerns: Despite stretched valuations in the Indian markets, there remains enthusiasm among retail investors, particularly in the broader market. This enthusiasm is likely to prompt a shift towards large-cap stocks.
Outlook
The market is currently in a consolidation phase, showing significant resilience. Investors are advised to seek buying opportunities on dips, with a focus on stock selection. The performance of global indices, especially in the US, will be closely monitored for further cues.
Summary
Overall, the market`s ability to recover from initial losses and close near the flat line underscores the underlying strength in select sectors and stocks. The focus remains on navigating through global uncertainties and domestic sectoral performances.
This report encapsulates the market dynamics of July 25, 2024, providing a comprehensive overview of the day`s trading activity, sectoral performance, and key insights for investors.
24 Jul
NIFTY OUTLOOK FOR 25 JUL 2024
Overall Market Performance: On July 24, 2024, Indian benchmark indices ended lower for the fourth consecutive session. The Sensex dropped by 280 points, closing at 80,148. The Nifty declined by 65 points, or 0.27%, settling at 24,413. The market displayed volatility, with Nifty forming a small negative candle on the daily chart, indicating a high wave type candle pattern after a recent decline from new highs.
Technical Analysis:
The Nifty failed to hold the 10-day EMA and is currently testing the support at the 20-day EMA around 24,270 levels. A breakdown below this level could signal further weakness, potentially bringing the index to 24,100 or lower.
A bullish hammer and high wave pattern formed over the last two sessions suggest a potential halt in the downward trend. A decisive move above 24,580 could indicate a near-term bottom reversal.
The daily momentum indicator shows a sell signal, suggesting selling on rises around the resistance zone of 24,500 – 24,550. The short-term trend remains weak, with potential downside targets between 24,200 and 24,000.
Sectoral Performance:
Gainers: Sectors like healthcare, oil & gas, media, telecom, and power showed gains between 1-2%. The broader indices outperformed, with the BSE Midcap index rising 0.7% and the Smallcap index gaining 2%.
Losers: The FMCG and banking sectors declined by 0.5-1%. Notable underperformers in the Nifty were Bajaj Finserv, Britannia Industries, Bajaj Finance, Tata Consumer, and Axis Bank.
Market Breadth: The market breadth was positive, with 2,474 shares advancing, 927 shares declining, and 85 shares remaining unchanged.
Key Takeaways:
The market continues to experience consolidation and volatility. Despite recent declines, the broader market segments, particularly mid and small caps, showed resilience.
Key support for Nifty lies at 24,200, with immediate resistance at 24,560. A decisive break below 24,200 could trigger further selling pressure, while a move above 24,580 could signal a trend reversal.
Investors are advised to maintain a cautious stance and focus on index majors. Monitoring position sizes and sector-specific performance, particularly in the context of banking and FMCG, is recommended.
Outlook: The short-term outlook for Nifty remains bearish unless it sustains above the key resistance levels. The formation of bullish patterns suggests the potential for a temporary halt in the downtrend. Traders should consider selling on rises and buying on dips within the defined support and resistance zones.
18 Jul
NIFTY OUTLOOK & OPTION TRADING TIPS FOR 19 JUL 2024
It seems you`ve provided a comprehensive update on the Indian equity markets for July 18. Here`s a structured report based on the information:
Market Summary - July 18, 2024:
Benchmark Indices:
Sensex: Closed at 81,343, up by 626 points or 0.78%.
Nifty: Closed at 24800, up by 187 points or 0.76%.
Market Movement:
The markets extended their positive streak, with the Nifty reaching 24,800, supported by gains across various sectors.
IT sector outperformed with a rally of over 2.20%, while Media sector corrected sharply, declining by 3.5%.
Technical Analysis:
Nifty successfully surpassed short-term resistance levels, indicating intensified positive momentum.
Support levels: 24,700/81,000; Resistance levels: 24,900-24,950/81,600-81,800.
Immediate support shifted higher towards 24,550-24,600.
Bank Nifty:
Held above the 20-day moving average, moving towards 53,000 following a gap down opening and testing support at 52,100.
Sectoral Performance:
Gainers: IT, FMCG, Auto, and Telecom sectors rose between 0.3% to 2%.
Losers: Media and Metal sectors declined by 1% to 3.5%.
Midcap & Smallcap: Both indices shed 1% each, recovering slightly but not outperforming the frontline indices.
Top Gainers (Nifty):
TCS, LTI, Mindtree, ONGC, Bajaj Finserv, Wipro.
Top Losers (Nifty):
Asian Paints, Hero MotoCorp, Grasim, Coal India, Bajaj Auto.
Market Sentiment:
Bullish sentiment prevailed, indicated by strong market breadth with more advances than declines.
Outlook:
Short-term trend remains positive above 24,500 for Nifty and 52,000 for Bank Nifty.
Potential resistance at 25,000 for Nifty and 53,000-53,300 for Bank Nifty in the near term.
This report summarizes the key developments and technical outlook for the Indian equity markets on July 18, 2024.
16 Jul
NIFTY OUTLOOK FOR 18 JULY 2024
Overview:
Indian benchmark indices extended their gains for the third consecutive session on July 16, albeit with cautious trading amidst global economic cues and anticipation around the upcoming Budget announcement. The markets displayed resilience despite mixed global sentiments.
Key Indices:
Sensex: Closed at 80,716.55, up 51.69 points or 0.06%.
Nifty: Ended at 24,613.00, gaining 26.30 points or 0.11%.
Market Performance:
The Sensex and Nifty showed marginal gains, maintaining a cautious stance ahead of the Budget.
Sectoral performances varied with Realty leading the gains (up 1.6%), followed by FMCG, IT, Metal, and Telecom sectors showing moderate increases.
Media sector witnessed a decline of 1%, with Power and Capital Goods indices also slipping by 0.5% each.
Midcap index dipped by 0.3% while the smallcap index edged up by 0.3%.
Sectoral Highlights:
Top Gainers: Coal India, BPCL, HUL, Tata Consumer Products, and Bharti Airtel.
Top Losers: Shriram Finance, Dr Reddy`s Labs, Kotak Mahindra Bank, UltraTech Cement, and Reliance Industries.
Market Sentiment:
Investors adopted a cautious approach amidst global economic uncertainties and subdued expectations for Q1FY25 earnings.
The upcoming earnings season and the Federal Reserve`s dovish stance on inflation were key global factors influencing market sentiment.
Technical Analysis:
Nifty showed signs of consolidation around the 24,600-24,650 range, with immediate support noted at 24,500.
Bank Nifty held support near the 20-day moving average, with expectations of potential upside towards 52,800-53,000 levels.
Global Cues:
Dovish comments from the Federal Reserve Chief and a drop in US 10-year yields hinted at a possible rate cut in September, influencing global market trends.
Conclusion:
The Indian equity markets closed higher for the third straight day, displaying resilience amid cautious trading. Sectoral performances varied, with Realty leading the gains and Media facing correction. Investors await further cues from the Budget announcement and the ongoing earnings season to guide future investment strategies.
12 Jul
NIFTY OUTLOOK & TRADING TIPS FOR 15 JUL 2024
Overview:
Indian equity markets ended the previous week on a strong note, primarily driven by robust performance in the Information Technology sector. The Sensex closed at 80,519.34, up by 622 points (0.78%), while the Nifty ended at 24,502.20, marking a gain of 186.20 points (0.77%). The market sentiment was buoyed by positive earnings from IT majors and anticipation of favorable economic indicators.
Key Developments Last Week:
Sector Performance:
Information Technology: The IT sector surged 4.5%, led by strong quarterly results from companies like TCS, Wipro, Infosys, and HCL Technologies.
Media: The Media sector also saw gains, adding over 2% during the week.
Other Sectors: Realty (-1.5%), Power (-1%), Capital Goods (-0.5%), and Auto (-0.5%) indices faced downward pressure.
Market Drivers:
Earnings Season: Positive Q1 results from IT companies boosted overall market sentiment.
Global Cues: Investors monitored US economic data and developments in China, influencing global market trends.
Domestic Factors: Expectations of a rate cut and pre-budget optimism contributed to market optimism.
Upcoming Events:
Domestic: Release of India`s inflation data and key corporate earnings including Jio Financials, HDFC Life, Asian Paints, and others.
Global: Market reaction to China’s Q2 GDP figures, US Core Retail Sales data, and ECB interest rate decisions.
Market Outlook (July 15 - July 19, 2024):
Sector Focus: IT sector likely to remain in focus with ongoing earnings announcements. Other sectors may see selective buying based on earnings performance.
Economic Indicators: Market movement could be influenced by India`s inflation data and global economic reports.
Policy Expectations: Anticipation of a potential rate cut may continue to drive investor sentiment positively.
Technical Levels: Resistance at 52,800 for the Sensex and support at the 21 EMA for the Nifty may guide short-term trading strategies.
Strategy for Investors:
Buy-on-Dips: Given the current momentum and positive earnings outlook, adopting a buy-on-dips strategy could be prudent.
Sector Rotation: Monitor sectoral performance closely, especially IT and Media, for potential trading opportunities.
Risk Management: Consider volatility in sectors like Realty and Power; diversify portfolios accordingly.
Conclusion:
The Indian equity market is poised with optimism heading into the upcoming trading week, supported by strong earnings momentum in the IT sector and favorable global economic cues. Investors are advised to stay informed about key economic indicators and corporate earnings releases to navigate potential market movements effectively.
03 Jul
NIFTY OUTLOOK FOR 4 JULY 2024
Summary
On July 3, the Indian equity indices experienced a positive trading session, with both the Sensex and Nifty closing higher. The Nifty managed to close above the 24,250 mark, despite a lack of follow-through momentum at the beginning of the session. This upward movement was driven by buying across most sectors, except media.
Market Highlights
Sensex: Closed at 79,986, up by 545 5points.
Nifty: Closed at 24,286, up by 162.70 points.
Sector Performance
Top Performing Sectors: BankNifty, Metals, PSU Banks
Broader Markets: The Midcap and Smallcap indices outperformed the Frontline Index with gains of 0.79% and 1.03% respectively.
Sectoral Indices: All sectoral indices, except media, ended in the green. Power, capital goods, bank, and metal sectors were up 1-2%.
Technical Analysis
Nifty:
The Nifty has regained bullish momentum, closing above the 24,250 mark.
The index showed resilience, maintaining a range and closing at 24,286.50.
A Dragonfly DOJI candlestick pattern at record levels suggests a possible pause or consolidation.
On the hourly chart, the Nifty shows a probable negative divergence in RSI, with potential support at 24,200. A move below this could drag the index towards 24,130.
Immediate resistance is seen at 24,500, and maintaining above 24,000 will likely support the bullish trend.
Bank Nifty:
Strong upward momentum, closing above 53,000.
The daily chart indicates a strong uptrend with higher highs and higher lows.
Immediate support at 52,500 offers an ideal entry point for fresh long positions on any dip.
Market Breadth
Advances: 2075 shares
Declines: 1372 shares
Unchanged: 66 shares
Major Gainers
Tata Consumer Products
Adani Ports
Kotak Mahindra Bank
Axis Bank
HDFC Bank
Major Losers
TCS
Titan Company
Reliance Industries
Tata Motors
Hindalco Industries
Conclusion
The Indian equity markets displayed a strong performance on July 3, driven by broad-based buying across sectors except for media. The positive sentiment was reflected in the significant gains of major indices. The Nifty`s ability to sustain above 24,000 and close in on 24,500 suggests a continuation of the bullish trend in the near term. Bank Nifty`s performance also indicates strong buying interest, particularly at lower levels. However, traders should watch for potential consolidation or minor corrections, especially with technical indicators showing divergence.
01 Jul
NIFTY OUTLOOK FOR TUESDAY 2 JUL 2024
Overview
Indian benchmark indices bounced back from the previous session’s losses and closed higher on July 1, 2024. The Nifty ended above the 24,100 mark, and the Sensex gained 443 points to close at 79,476, marking an increase of 0.56%. The Nifty rose by 131 points, closing at 24,142, up by 0.55%. This positive movement was observed despite a mixed sectoral performance, with significant gains in IT, financials, and metals, while energy and realty sectors faced declines.
Market Performance
Sensex: Closed at 79,476, up by 443 points.
Nifty: Closed at 24,142, up by 131 points.
Sectoral Performance
Gainers:
IT: Rose nearly 2%, driven by renewed strength in IT stocks.
Financials: Showed decent gains alongside metals.
Metals: Continued to perform well.
Cement Stocks: Witnessed significant buying traction, contributing to sectoral gains.
Losers:
Energy: Dipped around half a percent.
Realty: Experienced a slight decline.
PSU Banks: Ended the day with a loss of 0.76%.
Power: Was among the few sectors that ended in the red.
Broader Market Performance
Midcap Index: Added more than 1%, hitting a fresh record high.
Smallcap Index: Also advanced over 1%, outperforming the benchmark indices.
Market Sentiment
The consistent buying interest on dips indicates strong bullish control, likely to maintain the current upward momentum. The renewed strength in midcap and smallcap segments adds further positivity to the market sentiment. The formation of a reasonable positive candle on the daily chart, placed beside the small negative candle of the previous session, suggests that the minor negative sentiment created on Friday has been nullified.
Chart Analysis
Positive Chart Pattern: The higher tops and bottoms pattern remains intact, with a minor higher bottom formed last week. This suggests the market is on an uptrend towards forming another higher top at new highs.
Bullish Engulfing: The daily chart indicates the presence of strong momentum, suggesting the index is heading toward the 24,250-24,400 zone.
Support Levels: Immediate support is placed at 23,940 and 23,980 levels, indicating a higher shift in support.
Key Influences
US PCE Inflation: The reduction in US PCE inflation has raised hopes for a rate cut by the FED in September, contributing to the strong performance of IT stocks.
US Job Data and Fed Chair’s Speech: Investors are focused on upcoming US job data and the Fed Chair’s speech for further indications on interest rates.
Top Performers
Gainers
Tech Mahindra
Wipro
Bajaj Finance
UltraTech Cement
Grasim Industries
Losers
NTPC
Eicher Motors
Dr Reddy`s Labs
SBI
Apollo Hospitals
Conclusion
The Indian market`s performance on July 1, 2024, reflected a positive start to the week, with benchmark indices erasing previous session losses and ending higher. The bullish momentum, coupled with strong buying interest on dips and renewed strength in midcap and smallcap segments, indicates a positive underlying trend. Traders are advised to focus on sectors with rotational participation and consider adding positions during market pauses or dips. The market is expected to target the 24,400 level in the near term, with strong support levels ensuring stability.
28 Jun
NIFTY WEEKLY REPORT & OUTLOOK FOR TRADING ON `1 JUL TO 5 JUL 2024
Indian benchmark indices ended lower in a volatile session on June 28.
Key Indices Performance
Sensex: Down 210.45 points or 0.27% at 79,032.73
Nifty: Down 33.90 points or 0.14% at 24,010.60
The markets traded within a narrow range throughout the day, closing nearly unchanged after a recent surge. Initially positive, the session saw profit-taking in key heavyweights that offset early gains, resulting in the Nifty settling around 24,009.30 levels, down by 0.15%.
Sector Performance
Despite the overall decline, sectors like energy, pharma, and metal ended in positive territory, contributing to gains of around 0.5%-0.9% in broader indices. Here’s a closer look:
Healthcare, Metal, PSU Bank, Oil & Gas, Realty: Up 0.5%-1%
Bank Index: Down 1%
Capital Goods Index: Shed 0.4%
BSE Midcap and Smallcap Index: Added 0.5% each
Stock Performance
Top Gainers:
ONGC
Dr Reddy`s Labs
Reliance Industries
SBI Life Insurance
Tata Motors
Top Losers:
IndusInd Bank
Bharti Airtel
Axis Bank
ICICI Bank
Kotak Mahindra Bank
Market Sentiment and Future Outlook
Looking ahead, there’s a possibility of consolidation in the benchmark index following recent upward movements, with support expected around the 23,700-23,900 range on any declines. Banking stocks are currently consolidating, while sectors such as IT, energy, and FMCG are buoying the index higher. Similar market dynamics are anticipated in the upcoming sessions, so traders should strategize accordingly.
India’s optimism about the upcoming budget and upgrades in GDP forecasts continues to provide momentum in the market. Large caps are in favor due to the comeback of Foreign Institutional Investors (FIIs). However, profit booking ensued at the end of the week at higher levels, especially in financials and private banks, which dragged the market down after the recent rally.
BankNifty Index Analysis
The BankNifty index experienced its first meaningful correction after a nonstop rally in the past week. For the selling pressure to continue, there needs to be follow-up selling; otherwise, the index may get stuck in a consolidation range.
Immediate Support: 52,000 (highest open interest on the put side)
Immediate Resistance: 52,700-53,000 zone
The index formed a small-bodied red candle, breaking a four-day winning streak. The sentiment continues to remain strong as the index closed significantly above the critical moving average. However, after a continuous rally, the index looks a bit heavy and might attract profit booking if Nifty sustains below 24,000.
Support Levels: 23,850 / 23,700 in the short term upon a decisive fall below 24,000.
Resistance Levels: 24,200 on the higher end.
Market Breadth
Advancing Shares: 1,929
Declining Shares: 1,449
Unchanged Shares: 80
26 Jun
NIFTY OUTLOOK & OPTION CALL PUT TRADING TIPS FOR 27 JUN 2024
Key Highlights:
Sensex Performance: Up by 620 points, a gain of 0.80%, closing at 78674.
Nifty Performance: Up by 147 points, a gain of 0.62%, closing at 23868.
Market Overview:
Sectoral Performance:
Gainers: Energy, FMCG, Banking
Losers: Metal, Auto, Realty
Broader Indices: Midcap index down by 0.30%, Smallcap index ended flat.
Detailed Analysis:
Nifty Movement:
Opened flat but gained momentum, closing near the day`s high at 23,868.80.
Follow-through buying observed post consolidation range breakout.
Short-term target: 24,150.
Support zone: 23,700 – 23,680 (recommended as buying opportunity).
Momentum indicators (daily and hourly) are in sync, suggesting continued momentum.
Bank Nifty Movement:
Continued uptrend, nearing the 53,000 mark.
Immediate resistance: 53,660.
Crucial support: 52,300 – 51,900.
Buy-on-dip approach advised, with strong support at 52,500-52,400.
Aggressive put writing at lower levels indicates robust support.
Stock Performance:
Top Gainers:
Reliance Industries
UltraTech Cement
Bharti Airtel
ICICI Bank
Grasim Industries
Top Losers:
Apollo Hospitals
Bajaj Auto
M&M
Tata Steel
Hindalco Industries
Sector Performance:
Upward Movers:
Bank, Oil & Gas, Telecom, Media, FMCG (up by 0.3-2%)
Downward Movers:
Auto, Metal, Realty (down by 0.7-1.5%)
Market Sentiment:
Breadth: 1634 shares advanced, 1763 shares declined, 85 shares unchanged.
Profit Booking: Expected due to rally driven by select heavyweights.
Derivative Expiry: Volatility anticipated due to monthly expiry of June derivatives contracts.
Strategic Recommendations:
Continue with a “buy on dips” strategy, focusing on specific sectors and themes for stock selection.
Monitor Nifty and Bank Nifty for potential buying opportunities near support zones.
Summary:
The Indian benchmark indices reached record closing highs on June 26, driven primarily by selective heavyweights like Reliance Industries and strong performances in sectors like banking, FMCG, and energy. Despite mixed sectoral trends and pressure in mid and smallcap indices, the broader market sentiment remains cautiously optimistic. Volatility is expected ahead of the monthly derivatives expiry, reinforcing the recommendation to adopt a strategic buy-on-dips approach.
25 Jun
NIFTY OUTLOOK & OPTION TRADING TIPS FOR 26 JUN 2024
Overview
The market experienced a bullish phase driven by investor confidence in the banking and select frontline IT stocks, which propelled benchmark indices to fresh highs. Despite a majority of sectors closing in the red, the significant gains in the financial sector highlighted a positive trend.
Market Performance
Nifty 50:
Closed at: 23,754.15 (+183 points)
Trend: Positive with sustainable upside recovery.
Immediate support: 23,550
Immediate resistance: 23,835 - 24,000
Sensex:
Closed at: 78,164 (+712 points)
Sector Rotation: Led by banking, with profit booking in realty, power, metals, and midcaps.
Sectoral Performance
Banking and Financials: Outperformed with over 1% rally.
Nifty Bank Index:
New high: Broke above 52,000 resistance.
Trading: Strong uptrend with higher highs and higher lows.
Immediate targets: 53,000/53,500
Support: 52,000
IT Sector: Showed robust performance, contributing significantly to the bullish trend.
Realty Sector: Declined by nearly 2%, indicating profit booking.
Other Sectors:
Metals, energy, and broader indices ended flat to marginally lower, reflecting moderate consolidation.
Technical Analysis
Nifty 50:
Formed a long bull candle on the daily chart, indicating a potential upside breakout.
Intraday range: Held positive momentum after a strong opening.
Higher bottom formation on intraday charts suggests a continuation of the uptrend wave.
Bank Nifty Index:
Breaking resistance of 52,000 with significant call-side open interest build-up.
In strong uptrend with support at 52,000.
Intraday dips are seen as buying opportunities for targets of 53,000/53,500.
Trend Analysis
The short-term trend for Nifty remains positive, with early signs of an upside breakout.
Key Levels:
Trend decider level for traders: 23,600/77,500.
Immediate resistance zones: 23,835-24,000/78,500-78,700.
Below 23,600/77,500, the uptrend would be vulnerable, advising traders to exit long positions.
Market Sentiment
The market`s upward movement is influenced by expectations from the upcoming budget and the progress of the monsoon, which could impact the consumption outlook.
Conclusion
The bullish trend driven by the banking sector, particularly private banks, and the performance of frontline IT stocks suggest a positive market outlook in the short term. However, sector rotations and profit booking in specific areas like realty and metals indicate a cautious approach for investors. Key levels and trend decider points should be monitored closely for making informed trading decisions.
24 Jun
NIFTY OUTLOOK & OPTION TRADING TIPS FOR 25 JUN 2024
Overview
Indian benchmark indices experienced a marginal increase in a volatile trading session on June 24. Both the Sensex and Nifty showed resilience by recovering from early losses to close in positive territory. The Sensex closed at 77,341, up 0.17% or 131 points, while the Nifty ended at 23,537, up 0.16% or 36 points.
Market Performance
Sensex: Up 0.17% (131 points) to 77,341
Nifty: Up 0.16% (36 points) to 23,537
Advance/Decline: 1,796 shares advanced, 1,692 shares declined, and 134 shares remained unchanged.
Trading Dynamics
The trading session saw significant fluctuations, with both indices initially falling by up to 0.5% before recovering. The Nifty opened gap down but managed to recover, closing with a gain of approximately 37 points. The index has been trading in the range of 23,200 to 23,700 over the past ten sessions, suggesting a consolidation phase.
Technical Analysis
Nifty: The index has been trading between 23,200 and 23,700. Dips towards 23,200 are seen as buying opportunities with a trailing stop loss set at 23,200. A positive crossover in the hourly momentum indicator suggests a buy signal. Immediate resistance is seen at 23,600, with potential for further upside if this level is breached.
Bank Nifty: Consolidating after a rally of approximately 1,700 points. Buying is recommended on dips towards 51,350 – 51,300, with immediate resistance at 52,500. A breakout above this resistance could see the index move towards 52,400 – 52,800.
Sectoral Performance
Gainers: Auto, FMCG, Capital Goods, Telecom, and Power indices rose by 0.5% to 1%.
Losers: Metal, Oil & Gas, PSU Bank, and Media sectors fell by 0.5% to 1%.
Top Performers
Nifty Gainers: M&M, Shriram Finance, Power Grid Corporation, Sun Pharma, Grasim Industries.
Nifty Losers: Cipla, IndusInd Bank, Adani Ports, Coal India, Tata Steel.
Broader Market
BSE Midcap: Increased by 0.3%.
BSE Smallcap: Increased by 0.3%.
Midcaps outperformed the frontline indices, whereas small caps ended in the red.
Market Sentiment
Despite a consolidative trend, sectoral rotation is evident, particularly in FMCG and consumer durables sectors, driven by budget expectations. Improved tax collection and dividends from the RBI are likely to support rural spending and tax benefits. Investors remain optimistic about growth in sectors like capital goods, infrastructure, and auto, despite valuation concerns in mid- and small-cap stocks.
Conclusion
The Indian stock market showed resilience in a choppy session, with both the Sensex and Nifty managing to close marginally higher. The market remains in a consolidation phase with defined support and resistance levels. Investors are advised to adopt a buy-on-dips strategy, particularly in sectors showing strength and positive momentum indicators.
22 Jun
NIFTY WEEKLY OUTLOOK & TIPS FOR NEXT WEEK 24 JUN 2024
Overview
On June 21, the Indian benchmark indices ended lower in a highly volatile session. The Nifty closed at 23,501, down 65 points or 0.28%. The Sensex also experienced a downturn, closing at 77,209, a decrease of 269 points or 0.35%. Despite the decline, the markets managed to pare some losses towards the end, mitigating the extent of the drop.
Market Dynamics
Profit Booking: Investors partially booked profits following a six-session rally. This movement was influenced by weak global cues.
Sectoral Performance:
Gainers: IT, Metal, Media, and Telecom sectors showed gains ranging from 0.5-1 percent.
Losers: Auto, FMCG, PSU Bank, and Realty sectors were down by 0.5-1 percent.
Heatwave Impact: The ongoing heatwave in Northern India drove up consumer durables stocks, although the slow progress of the monsoon led to underperformance in the FMCG sector.
Global Influence: Global markets were subdued, particularly due to weak guidance from Accenture, which led to profit booking in US tech stocks. However, domestic IT stocks saw buying interest as weaker earnings were anticipated by market participants.
Index Performances
Sensex: Down by 269 points (0.35%) to 77,209.
Nifty: Down by 65 points (0.28%) to 23,501.
Nifty Bank: Exhibited a volatile session, ending flat. The index faces immediate resistance at 52,000, with the highest open interest on the call side. The support is placed at 51,000, where the highest open interest on the put side is noted.
Midcap Index: Down by 0.3%.
Smallcap Index: Ended flat.
Market Breadth
Advances: 1611 shares.
Declines: 1750 shares.
Unchanged: 85 shares.
Key Performers
Top Gainers on Nifty: Bharti Airtel, LTIMindtree, Adani Ports, Hindalco, Infosys.
Top Losers on Nifty: Adani Enterprises, UltraTech Cement, BPCL, Tata Motors, Tata Consumer Products.
Weekly Trends
Overall Performance: Despite the daily decline, both Sensex and Nifty posted minor gains of 0.2% each for the third consecutive week.
Nifty Bank: Recorded the biggest weekly gain of 2024, up more than 3 percent, marking the longest gaining streak in 19 months (up for six consecutive weeks).
Midcap Index: Gained 0.5% over the week.
IT Sector: Best performing sectoral index for the week.
Upcoming Events
Investors are now looking forward to the Union Budget in July, hoping for a market-friendly budget that will boost economic activity and investment. Additionally, attention is on the upcoming GST meeting, where potential rationalization of GST rates in certain sectors is under discussion.
20 Jun
NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 21 JUN 2024
Market Overview
Indian benchmark indices ended marginally higher in a volatile trading session on June 20, 2024. The Sensex gained 141 points to close at 77,478, while the Nifty increased by 51 points to end at 23,567.
Market Highlights
Top Nifty Gainers:
Grasim Industries
Hindalco Industries
JSW Steel
Adani Ports
BPCL
Top Nifty Losers:
Hero MotoCorp
Sun Pharma
M&M (Mahindra & Mahindra)
NTPC
Wipro
Sectoral Performance:
Gainers: Metals, Capital Goods, Realty, Oil & Gas
Losers: Auto, Pharma, PSU Banks
Market Dynamics
The session was marked by significant volatility but ultimately concluded on a positive note. Key influencing factors included:
Domestic Factors:
Anticipation of the upcoming Union Budget.
Progress of the monsoon season.
Global Factors:
Decline in US bond yields, leading to robust Foreign Institutional Investor (FII) inflows.
Fertilizer stocks showed substantial momentum due to the proposed removal of GST and an increase in the Minimum Support Price (MSP).
Technical Analysis
The Nifty formed a small negative candle on the daily chart, indicative of a Doji type candle pattern, suggesting indecision and broader sideways range movement.
Immediate Support Level: 23,450
Resistance Level: 23,660
Short-term Upside Target: 23,950
Despite minor knee-jerk reactions, the Nifty displayed gradual upward momentum within a narrow range. The overall trend remains range-bound, with potential minor intraday weaknesses around the 23,750-23,800 levels, which could present short-term buying opportunities.
Sectoral Performance
Metal and Realty: Top performers with over 1% gains.
Auto: Continued profit-booking corrections.
Pharma: Ended as the major laggard.
Chemical and Fertilizer Stocks: Dominated the trade, soaring in the range of ~10-20%.
Market Sentiment
The market exhibited cautious optimism, particularly as US indices were closed on Wednesday, influencing domestic investors` sentiment. The trend of outperformance by Mid and Smallcap stocks resumed after a brief pause, indicated by the Spinning Top candlestick pattern, suggesting continued protection at the lower side of 23,340 and resistance at 23,660.
Closing Summary
The Indian stock market experienced a mixed but ultimately positive session. Investor focus remains on the upcoming Union Budget and monsoon progress, while global cues, particularly US bond yields, continue to impact FII inflows. Sectoral rotations were evident, with selective buying in certain sectors like Metals and Realty, while others like Auto and Pharma faced selling pressure.
Market Outlook
In the near term, markets are likely to continue experiencing range-bound movements with potential minor weaknesses providing buying opportunities. Investors should watch the 23,750-23,800 levels for possible intraday weakness and the 23,950 level as the near-term upside target.
19 Jun
NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 20 JUN 2024
Key Indices Performance:
Sensex:
Closed at 77,337, up by 36 points.
Nifty:
Closed at 23,516, down by 41 points.
Market Summary:
The Indian benchmark indices experienced a volatile session on June 19, with the Sensex marginally up and the Nifty closing lower. Despite the choppy trading, the overall sentiment remains cautiously optimistic with a short-term bullish outlook, particularly in banking stocks.
Intraday Analysis:
Nifty Movement:
The Nifty index remained range-bound between 23,450 and 23,650, eventually closing at 23,516.
The index formed a Bearish Engulfing candle on the daily chart, indicating a potential short-term reversal.
There is a bearish divergence in RSI, suggesting a temporary pause in the uptrend.
Support is expected at the 55-hour EMA (23,340), with resistance at today’s high (23,660).
Bank Nifty:
Continued strong momentum, approaching 52,000.
Immediate support is in the 51,000-50,900 range.
The index is in a buy mode, with targets of 52,100-52,600.
Sector Performance:
Top Performers:
Banking Sector: Up by 2%, led by HDFC Bank, Axis Bank, ICICI Bank, IndusInd Bank, and Kotak Mahindra Bank.
IT Sector: Increased by 0.4%.
Lagging Sectors:
Auto, Capital Goods, Metal, Oil & Gas, Power, Realty: All down by 1-3%.
Energy and Realty: Corrected the most during the session.
Midcap and Smallcap Indices:
BSE Midcap Index: Fell by 1%.
BSE Smallcap Index: Shed 0.6%.
Market Breadth:
Advancers: 1430 shares
Decliners: 1969 shares
Unchanged: 62 shares
Top Gainers:
HDFC Bank
Axis Bank
ICICI Bank
IndusInd Bank
Kotak Mahindra Bank
Top Losers:
Titan Company
Maruti Suzuki
Larsen & Toubro (L&T)
Hindalco
Bharti Airtel
Technical Outlook:
The short-term trend for the Nifty remains strong as long as it sustains above the 55-hour EMA (23,340).
Potential upward target in the short term is 23,800 and beyond.
Bank Nifty’s strong momentum is expected to continue, making it a favorable buy on dips.
Conclusion:
Today’s trading session was characterized by volatility, with mixed performances across various sectors. While banking and IT sectors provided support, other sectors such as auto, capital goods, and realty dragged the indices down. The Nifty’s formation of a Bearish Engulfing candle suggests a cautious approach in the near term, though the overall market sentiment continues to favor short-term bullish trades, particularly in banking stocks. Investors should watch for support levels and possible upward targets in the coming sessions.
18 Jun
Market Report: Nifty Bank and Nifty50 Performance Analysis
Overview
On Tuesday, the Nifty Bank index extended its rally for the second consecutive day, driven by positive global cues. This upward movement saw the index breaking through critical resistance levels and achieving significant gains. The broader Nifty50 index also experienced an uplift, hitting a fresh record high, indicating a robust and optimistic market sentiment.
Nifty Bank Performance
Closing Value: 50,440
Daily Gain: 438 points
Resistance Level Surpassed: 50,250
The Nifty Bank index closed 438 points higher at 50,440, successfully surpassing the critical resistance mark of 50,250. This breakout signals a continuation of the bullish momentum, with the next target likely being the 51,000 mark. The undertone remains strongly bullish, and a buy approach is recommended, with solid support noted at 49,700.
Nifty50 Performance
Closing Value: 23,557
Daily Gain: 92 points
Record High: 23,579
The Nifty50 index rose by 92 points to close at 23,557, reaching a fresh record high of 23,579 during the trading session. Despite a range-bound movement on an intraday basis over the past few days, the index managed to climb above the 23,500 mark, reinforcing a positive trend. Key support is positioned at 23,300, with the potential for the index to move towards 23,800 on the higher end.
Market Sentiment
The Indian market continues to touch record highs, buoyed by gains achieved post-national elections and optimism surrounding the upcoming budget. This budget is expected to balance growth with populist measures, further encouraging market confidence. Additionally, positive global market trends and a steady US market ahead of the presidential election in November are contributing to the bullish outlook. A notable decrease in market volatility over the past month has also supported this short-term upward trend.
Conclusion
The Nifty Bank`s breakout above 50,250 and its strong close at 50,440 indicate a sustained bullish momentum, with an eye on the 51,000 mark. Similarly, the Nifty50`s move past 23,500 and its new record high of 23,579 underscore the positive sentiment prevailing in the market. Investors are advised to maintain a buy approach, capitalizing on the strong support levels identified for both indices. The overall market outlook remains optimistic, driven by favorable domestic and global factors.
14 Jun
NIFTY WEEKLY OUTLOOK & REPORT FOR 18 JUN 2024
Overview
Indian benchmark indices concluded positively on June 14, with the Nifty index achieving a new record high. The Sensex increased by 181 points or 0.24%, closing at 76,992, and the Nifty rose by 67 points or 0.29%, settling at 23,466. The market demonstrated a consolidation bias, maintaining a range-bound movement throughout the day after an initial dip.
Market Performance
Sensex: Up 181 points (0.24%) at 76,992
Nifty: Up 67 points (0.29%) at 23,466
Advance-Decline Ratio: 2,177 shares advanced, 1,598 shares declined, and 106 shares remained unchanged.
Rupee: Ended flat at 83.56 per dollar.
Sectoral Performance
Gainers:
Auto
Realty
Metal
Telecom
Capital Goods
Healthcare
Oil & Gas
Power
Laggers:
Information Technology (down 0.7%)
Key Gainers and Losers
Top Gainers on Nifty:
Eicher Motors
Mahindra & Mahindra (M&M)
Adani Ports
Shriram Finance
Titan Company
Top Losers on Nifty:
Tata Consultancy Services (TCS)
Tech Mahindra
HCL Technologies
Wipro
Nestle
Broader Market Indices
BSE Midcap: Up 1%
BSE Smallcap: Up 1%
Midcap Index:
7% rise in two weeks, marking the biggest gain in nearly three years.
Nearly 4% gain this week.
Technical Analysis
Nifty:
Consolidating in the range of 23,200 – 23,500 for five consecutive days.
A breakout above 23,600 could trigger an uptrend towards 24,000.
Positive momentum indicator crossover suggests potential for an upward move.
Bank Nifty:
Facing resistance at the 78.6% Fibonacci retracement level (50,050).
Needs to surpass 50,200 for confirmation of an upside breakout towards 51,000.
Support levels: 49,500-49,400 zone.
Trading Strategy
Nifty:
Use dips around 23,100-23,300 to initiate fresh positional longs.
A decisive close above 23,600 is crucial for the next leg towards 24,000.
Bank Nifty:
Buy interest on dips towards 49,500-49,400 for a target of 50,500 – 50,600.
Watch for a break below 49,400, which may indicate further downside risk.
Market Sentiment
Market gains have extended for the second straight week, with the Nifty up over 4% in two weeks.
Sensex and Nifty have recorded their biggest two-week gains since December 2023.
The Bank Nifty has shown moderate growth, up 0.3% for the week.
Renewed buying interest in midcap and smallcap stocks suggests investor confidence, despite higher valuation concerns in large-cap stocks.
Anticipation is building ahead of the upcoming government budget, which may introduce intra-day volatility in the markets.
Conclusion
The Indian markets ended the week on a strong note with significant gains in the Nifty and Sensex. The consolidation phase observed in the Nifty index indicates a potential breakout, while sectoral movements and broader market indices suggest a bullish undertone. Investors are advised to focus on a stock-specific approach and use dips for long positions, keeping an eye on key support and resistance levels. The upcoming budget and market expectations may drive short-term volatility, presenting both opportunities and risks.
13 Jun
NIFTY OUTLOOK & NIFTY OPTION TRADING TIPS FOR 14 JUN 2024
Market Overview
Indian benchmark indices ended higher for the third straight session on June 13, 2024. The Sensex gained 204 points (0.27%) to close at 76,810, while the Nifty rose 75 points (0.33%) to settle at 23,398. Despite the gains, the markets remained range-bound throughout the day.
Index Performance
Sensex: 76,810 (+204 points / +0.27%)
Nifty: 23,398 (+75 points / +0.33%)
Nifty Close: 23,399
Market Breadth:
Advances: 2048
Declines: 1371
Unchanged: 80
Sectoral Performance
Gainers:
Realty: Top performer of the day, supported by morning gains.
Information Technology (IT): Showed strong performance, up 1%.
Capital Goods: Rose by 2%.
Laggards:
Media: Witnessed profit booking correction after a recent rally, down 1%.
Fast-Moving Consumer Goods (FMCG): Fell by 0.6%.
Energy: Lagged behind other sectors.
Stock Performance
Top Gainers:
Shriram Finance
HDFC Life
Divis Labs
M&M
Titan Company
Top Losers:
HUL
Power Grid Corp
Axis Bank
Britannia Industries
Eicher Motors
Broader Market Indices
BSE Midcap: Up nearly 1%
BSE Smallcap: Up nearly 1%
Market Insights
The markets exhibited a mixed trend sector-wise. While realty and IT sectors led the gains, FMCG and energy sectors underperformed.
Mid and small-cap indices continued their streak of outperformance, each rising by approximately 0.60%.
The Nifty displayed a time-wise correction, with signs indicating that this trend may continue. It is suggested to focus on stock-specific trading, particularly in agriculture-related stocks, sugar, chemicals, and select defense stocks for long positions.
Technical Analysis
Nifty Resistance Levels: 23,480
Nifty Support Levels: 23,300
The Index formed a bearish candle at record levels and exhibited a bearish divergence on the hourly timeframe, suggesting a loss of positive momentum.
Recommendations
Investors are advised to focus on stock-specific opportunities, particularly in the following themes:
Agriculture-related stocks
Sugar stocks
Chemical stocks
Select defense stocks
Given the current market conditions, staying attuned to sectoral performance and resistance/support levels can help in making informed trading decisions.
12 Jun
NIFTY OUTLOOK & TRADING TIPS FOR 13 JUN 2024
Indian benchmark indices ended higher on June 12, with the Nifty above 23,300. The Sensex was up 149 points or 0.20% at 76,607, and the Nifty was up 58 points or 0.25% at 23,323.
Nifty Analysis
The Nifty witnessed another day of consolidation. Opening with gains, the index faced profit booking at higher levels but managed to close in the green, up ~58 points. On the daily charts, the Nifty has been trading in a range of 23,450 – 23,200 over the last three sessions. The hourly momentum indicator shows a negative crossover, causing rallies to fizzle out at higher levels.
Support Level: 23,150 – 23,100 (40-hour moving average)
Resistance/Target Level: 23,400 – 23,450
Short-term Trend: Positive, likely consolidating within 23,300 – 23,500
Potential Rally Trigger: Breakout above 23,500 could lead to 23,800
The broader market outperformed for the second consecutive day, with the Mid and Small Cap indices up 1.04% and 1.23% respectively.
Bank Nifty Analysis
Bank Nifty attempted a breakout above 50,300 but fell short, closing in the green up ~190 points.
Support Level: 49,600 - 49,500
Target Level: 50,500 – 50,600
Market Session Summary
Indian bourses began the session strong, registering a new high in the opening trade. However, lack of follow-through led to a range-bound performance, with a reversal in the last hour dragging the Nifty50 to settle at 23,323, up 58 points. Broader indices continued to outperform, with Mid and Small caps advancing over 1% each.
Sector Performance
Top Performers: Media, PSU Banking
Laggard: FMCG
A Shooting Star candlestick pattern at record levels suggests weakening bullish momentum. A firm close above 23,400 is essential to extend the upward trend, with support at 23,150.
Market Breadth
Advances: 2,284 shares
Declines: 1,159 shares
Unchanged: 74 shares
Top Gainers on Nifty
Coal India
Power Grid
SBI Life Insurance
Tech Mahindra
Eicher Motors
Top Losers on Nifty
Britannia
HUL
M&M
Titan Company
Tata Consumer
Sectoral Performance
Positive Performers: Telecom, Media, Capital Goods, Metal, Oil & Gas, Power (up 1% each)
Negative Performers: FMCG, Realty
Broader Indices
BSE Midcap Index: Up 1%
BSE Smallcap Index: Up 1%
This report summarizes the key movements and trends observed in the Indian stock market on June 12. Investors should consider the support and resistance levels in their trading strategies and note the performance of various sectors and broader indices for potential opportunities.
11 Jun
NIFTY OUTLOOK FOR 12 JUN 2024
Overview: Indian benchmark indices experienced a volatile trading session on June 11, ultimately ending on a flat note. The market sentiment remained uncertain, with indices showing choppy movement throughout the day. Despite opening with a positive bias and initial gains, intraday weakness emerged, particularly near the hurdle of 23400 levels for the Nifty, leading to a reversal of the day`s gains. The Sensex closed marginally lower, down 33 points at 76,456, while the Nifty managed to close with a minor gain of 5.60 points at 23264.
Key Highlights:
The Nifty encountered resistance at the 23400-23500 levels, marked by the 1.382% Fibonacci projection, weekly hanging man pattern, and the opening downside gap of June 4. This resistance zone posed challenges for sustaining new all-time highs, hinting at the possibility of a minor downward correction in the short term. Immediate support for Nifty was identified at 23050 levels.
Market sentiment remained sideways, with no clear directional move observed. A breakout from the 23150-23350 range was suggested to signal the future market direction. A decisive move above 23350 could potentially lead Nifty towards 23600, while support below 23150 was identified at 23000-22900 levels.
The BankNifty Index traded sideways, failing to surpass the 50000 mark, where significant call side open interest was built up. A breakout above 50000 could trigger short covering towards the 50500/51000 levels. The overall undertone for BankNifty remained bullish, with a recommended buy-on-dip strategy. Support was noted at 49000, where significant put side open interest was observed.
Sectoral Performance:
Selling pressure was evident in sectors such as banking, FMCG, healthcare, and metals, while capital goods, oil & gas, and realty sectors showed resilience, each posting gains of 1 percent.
Top gainers on the Nifty included ONGC, L&T, Adani Ports, Maruti Suzuki, and Tata Motors, while Kotak Mahindra Bank, Dr. Reddy`s Labs, Asian Paints, Reliance Industries, and Divis Labs registered losses.
Market Breadth:
Market breadth depicted a mixed picture, with 2246 shares advancing, 1193 shares declining, and 70 shares remaining unchanged.
The BSE midcap index rose by 0.7 percent, while the smallcap index added nearly 1 percent, indicating broader market strength.
Conclusion: The Indian stock market exhibited volatility and ended the day on a flat note, with indices struggling to maintain gains amidst resistance at key levels. Uncertainty prevailed regarding the future direction, with the market awaiting a decisive breakout to confirm the next trend. While certain sectors showed resilience, others faced selling pressure, reflecting the mixed sentiment among investors.
10 Jun
Market Report and Outlook for Indian Equity Indices (June 10)
Market Summary:
On June 10, the Indian equity markets ended a volatile session with marginal declines. The benchmark indices, the Sensex and the Nifty, closed lower despite hitting an all-time high during the trading day. The Sensex dropped by 203 points (0.27%) to settle at 76490, while the Nifty fell by 31 points (0.13%) to close at 23259. Despite the negative close, market breadth was positive with 2,381 shares advancing, 1,176 shares declining, and 91 shares remaining unchanged.
Key Highlights:
Nifty Performance: The Nifty opened with a gap-up and reached an all-time high of 23411 but failed to sustain this level, closing at the day`s low. Resistance was observed at the 23,300 level, with immediate support in the 23,000-22,900 zone. A break below this range could lead to aggressive selling pressure.
Sectoral Performance:
Top Losing Sectors: IT (-1.5%), Metal (-0.3%), Oil & Gas (-0.2%).
Top Gaining Sectors: Realty (+1.3%), Healthcare (+0.7%), Power (+0.4%).
Top Losers on Nifty: Tech Mahindra, Infosys, Wipro, M&M, LTIMindtree.
Top Gainers on Nifty: UltraTech Cement, Grasim Industries, Hero MotoCorp, Cipla, Power Grid Corp.
Market Volatility: The India VIX, a measure of market volatility, decreased by 2.71%, settling at 16.425, indicating reduced market fear.
Midcap and Smallcap Performance: The BSE midcap index rose by 0.5% while the smallcap index gained 1%.
Technical Analysis:
Nifty Analysis: The Nifty experienced a sharp rally of approximately 2,100 points over the past week. The hourly momentum indicator suggests a negative crossover, indicating a loss of momentum. The index is likely to consolidate within the 23,000-23,500 range in the near term.
Support Levels: Immediate support is at 23,160-23,100, with a crucial support zone at 23,000-22,900. Failure to sustain these levels could lead to a decline towards 22,930.
Resistance Levels: Immediate resistance is at 23,420-23,500. A close above 23,350 could propel the index to new highs near 23,500 and beyond.
Bank Nifty Analysis: The Bank Nifty faced resistance at the 50,250 mark, corresponding with the 78.6% retracement level. The index is poised for consolidation with crucial support at 49,320-49,070 and immediate resistance at 50,250-50,350.
Market Outlook:
The Indian equity market is expected to remain volatile and consolidate within a broad range. The lack of fresh catalysts post the formation of the new government suggests potential for near-term consolidation. Institutional flows show a mixed trend, with Foreign Institutional Investors (FIIs) covering shorts and Domestic Institutional Investors (DIIs) booking profits at historic highs.
Economic Factors: Optimism about a rate cut is waning due to healthy US economic data, with the Federal Reserve expected to maintain its current stance. Any deviation from the anticipated rate cut could test market patience.
Volatility Expectation: With the India VIX settling lower, reduced market fear is anticipated in the near term.
Investment Strategy:
Investors are advised to adopt a cautious approach given the current volatility and potential consolidation phase. Key strategies include:
Monitoring Support and Resistance Levels: Keeping an eye on crucial support and resistance levels for both Nifty and Bank Nifty to make informed trading decisions.
Sector Rotation: Considering sectors showing strength such as Realty, Healthcare, and Power for potential investment opportunities.
Risk Management: Employing proper risk management techniques to navigate the expected market consolidation and volatility.
Conclusion:
The Indian equity markets are likely to experience a period of consolidation within the 23,000-23,500 range for the Nifty. Investors should remain vigilant, focusing on sector-specific opportunities and adhering to disciplined risk management practices amidst the current market dynamics.
08 Jun
Understanding Call and Put Options: A Comprehensive Guide
Introduction
Call and put options are financial derivatives that provide buyers the right, but not the obligation, to buy or sell an underlying asset at a specified price within a particular timeframe. These options are essential tools in financial markets for hedging, speculation, and managing risk.
Types of Option Contracts
Option contracts can be classified into two major types based on when they can be exercised:
American-style options: These can be exercised at any time before their expiration.
European-style options: These can only be exercised on the expiration date.
Typically, traded call and put options belong to American-style options, allowing them to be squared off anytime before the expiration date.
Call Options
Definition
A call option provides the buyer the right to purchase an underlying asset, such as a stock, at a predetermined price (strike price) before the option expires. Buyers are not obligated to exercise this right.
How Call Options Work
A call option contract is formulated between an option seller (writer) and an option buyer. The seller grants the buyer the right to buy a specific security at a set price. For equity call options, each contract generally covers 100 shares. The buyer must pay an option premium to the seller for this right.
If the underlying security’s price exceeds the strike price, the call option gains intrinsic value, benefiting the buyer. If not, the option may expire worthless, and the premium paid is lost.
Example of Call Option
Assume Gammon India`s stock is priced at Rs. 100 per share. Investor B, holding 100 shares, sells a call option with a strike price of Rs. 150 for a premium of Rs. 0.50 per share. If the stock price rises above Rs. 150, the buyer will exercise the option, and B must sell the shares at Rs. 150 each. If the price does not exceed Rs. 150, B keeps the shares and the premium.
Put Options
Definition
A put option gives the buyer the right to sell the underlying asset at a specified strike price before the expiration date. The seller (writer) of the put option is obligated to buy the asset if the buyer exercises the option.
How Put Options Work
A put option’s value increases as the price of the underlying asset decreases. Buyers use put options to hedge against price declines or to speculate on a drop in asset value. If the asset’s price falls below the strike price, the put option becomes valuable. Otherwise, the buyer may let the option expire worthless, losing only the premium paid.
Example of Put Option
Suppose A buys a put option on Ford Motor Co. with a strike price of Rs. 100. If A holds 100 shares and the price drops below Rs. 100, A can sell the shares at Rs. 100, with the option writer purchasing them at this price.
Basic Terms
Spot Price: Current price of the underlying asset in the market.
Strike Price: Agreed price at which the asset can be bought or sold.
Option Premium: Non-refundable amount paid by the option buyer to the seller.
Option Expiry: Date when the option contract expires.
Settlement: In India, options are typically settled in cash.
Call Option Payoffs
For Buyers
Buyers profit if the underlying asset`s price exceeds the strike price plus the premium paid. The payoff and profit are calculated as:
Payoff = Spot Price - Strike Price
Profit = Payoff - Premium Paid
For Sellers
Sellers profit if the underlying asset`s price remains below the strike price. Their profit is limited to the premium received, but losses can be unlimited if the asset’s price rises significantly.
Payoff = Spot Price - Strike Price
Profit = Payoff + Premium Paid
Put Option Payoffs
For Buyers
Buyers profit if the underlying asset`s price falls below the strike price. The payoff and profit are calculated as:
Payoff = Strike Price - Spot Price
Profit = Payoff - Premium Paid
For Sellers
Sellers profit if the asset’s price stays above the strike price. Their maximum profit is the premium received, with potential losses if the asset`s price drops.
Payoff = Strike Price - Spot Price
Profit = Payoff + Premium Paid
Risk vs. Reward
Buying Call Options
Market Price < Strike Price: Loss
Market Price > Strike Price: Profit
Market Price = Strike Price: Break-even
Selling Call Options
Market Price < Strike Price: Profit
Market Price > Strike Price: Loss
Market Price = Strike Price: Profit from premium
Buying Put Options
Market Price < Strike Price: Profit
Market Price > Strike Price: Loss
Market Price = Strike Price: Loss of premium
Selling Put Options
Market Price < Strike Price: Loss
Market Price > Strike Price: Profit
Market Price = Strike Price: Profit from premium
Conclusion
Understanding call and put options is crucial for investors looking to hedge risk or speculate on market movements. While call options offer the potential for profits if the underlying asset’s price rises, put options provide gains when the asset’s price falls. Both types of options come with inherent risks and rewards that must be carefully considered.
08 Jun
NIFTY WEEKLY REPORT & OUTLOOK FOR 10 JUN 2024
Overview
Indian benchmark indices extended their rally for the third consecutive session on June 7, with the Nifty closing around 23,300. The Sensex surged by 1,618 points, reaching 76693, while the Nifty rose by 468 points, closing at 23290. This bullish momentum reflects a positive sentiment across the market, driven by several favorable factors.
Nifty Analysis
Opening and Closing: Nifty opened flat but gradually inched higher throughout the day, ending with a substantial gain of 469 points.
Technical Indicators:
On the daily charts, the Nifty has shown a V-shaped recovery following a sharp decline earlier in the week, regaining all lost ground.
The index is now close to its previous all-time high of 23,338, suggesting bullish momentum.
Support Zone: Dips towards the 22,800 – 22,700 range are considered buying opportunities.
Resistance: Psychological resistance at 23,500 may lead to profit booking.
Trend: The short-term trend is highly positive, with potential movement towards 23,500-23,600. Profit booking might occur if the index falls below 23,000.
Bank Nifty Analysis
Performance: Bank Nifty continued its pullback but remains below its previous all-time high of 51,133.
Support and Resistance:
Buying opportunities are seen in dips towards the 49,500 – 49,000 range.
Immediate hurdle stands at 51,133.
Trend: The pullback is likely to persist, supported by overall market stability and positive economic indicators.
Market Sentiment
Economic Factors:
Stability within the coalition government and the RBI`s upward revision of the FY25 growth forecast to 7.2% have fueled a broad-based rally.
Despite sticky inflation, investors anticipate the MPC (Monetary Policy Committee) is closer to an easing cycle.
Sector Performance:
All sectoral indices closed in the green, with notable gains in auto, IT, power, telecom, and metal sectors (up 2-3%).
The BSE midcap index increased by 1.2%, while the smallcap index rose by 2%.
Market Breadth:
Advances: 2,598 shares
Declines: 801 shares
Unchanged: 76 shares
Top Gainers and Losers
Top Gainers:
M&M
Wipro
Tech Mahindra
Infosys
UltraTech Cement
Top Losers:
SBI Life Insurance
Tata Consumer Products
Outlook
The Indian market continues to exhibit strength, with significant gains in key indices. The recovery in Nifty and Bank Nifty, backed by economic stability and positive forecasts, points to a sustained bullish trend. Investors are advised to consider buying on dips, particularly in the identified support zones. Profit booking is expected near the psychological resistance levels, but overall, the market sentiment remains optimistic.
As the market approaches previous all-time highs, careful monitoring of support and resistance levels is crucial for making informed trading decisions.
06 Jun
Market Report: Indian Benchmark Indices - June 6, 2024
Market Overview
The Indian stock market ended higher for the second consecutive session on June 6, amidst significant volatility. The Sensex surged by 692 points (0.93%) to close at 75,074, while the Nifty gained 201 points, ending at 22,821. This positive movement reflects a continued rebound from previous sessions.
Nifty Analysis
Opening & Closing: The Nifty witnessed a gap-up opening, consolidating throughout the day and holding onto its gains.
Daily Performance: On the daily charts, Nifty has shown a sharp recovery in recent sessions, reaching the 22,900 level, aligning with the 78.6% Fibonacci retracement level from the fall of 23,340 to 21,280.
Future Expectations: Given the significant run-up and the approach towards a crucial resistance level, a consolidation phase is expected. The anticipated short-term range for Nifty is between 21,800 and 23,000.
Volatility Index: INDIAVIX decreased by 12%, closing at 16.59, indicating reduced market uncertainty.
Sector Performance
Top Gainers: Realty, IT, and Oil & Gas sectors led the gains.
Lagging Sectors: FMCG and Pharma sectors were the major underperformers.
Sector Highlights:
Realty sector emerged as the top performer with gains exceeding 4.5%.
Media and PSU Banks also saw notable gains.
FMCG and Pharma sectors experienced declines.
Bank Nifty Analysis
Performance: Bank Nifty had a rangebound trading day.
Support & Resistance Levels: Key support is identified at 48,800 - 48,500, while resistance is pegged at 49,700 - 50,000.
RBI Policy Impact: The upcoming RBI policy event is expected to influence Bank Nifty`s movement, likely consolidating around the 49,000 mark.
Broader Market Performance
Midcap & Smallcap Indices: Both indices outperformed the benchmark, with midcaps gaining 2% and smallcaps rising by 3%.
Breadth of Market: A total of 2,740 shares advanced, 668 declined, and 70 remained unchanged, indicating broad-based buying interest.
Technical Indicators
Candlestick Pattern: Nifty50 formed a Spinning Top candlestick pattern, signaling indecisiveness between bulls and bears.
Key Levels: Immediate support is seen at 22,485, with resistance at 23,080-23,130.
Major Gainers & Losers
Top Gainers:
HCL Technologies
Shriram Finance
SBI Life Insurance
Tech Mahindra
SBI
Top Losers:
Hindalco Industries
HUL
Asian Paints
Hero MotoCorp
Nestle
Outlook and Strategy
The market has adjusted to recent election outcomes and is buoyed by stability on the global front. While a brief pause or consolidation may occur post-rebound, the overall market sentiment remains positive. It is advisable to adopt a "buy on dips" strategy, focusing on quality stocks during pullbacks. With broad sector participation, investors should stay vigilant for opportunities across various segments.
Conclusion
The Indian stock market displayed robust performance with widespread gains across various sectors, led by realty, IT, and PSU banks. As the Nifty approaches critical resistance levels, a period of consolidation is anticipated. However, the overall bullish trend suggests continued opportunities for investors, especially with reduced market volatility and a positive macroeconomic backdrop.
05 Jun
Market Report: Indian Benchmark Indices Surge After Recovery
Market Overview
Indian benchmark indices exhibited a strong recovery, erasing some of the previous day`s losses and closing higher. The Sensex increased by 2,303 points to close at 74,382, while the Nifty surged by 735 points, ending at 22,620. This rebound follows a significant decline due to political uncertainty, but market sentiment improved considerably after Prime Minister Modi`s speech.
Key Indices Performance
Sensex: Up 2,303 points (3.20%) to 74,382
Nifty: Up 735 points (3.36%) to 22,620
Sectoral Performance
All sectoral indices finished positively, with notable performances in:
Auto, Bank, FMCG, Metal, Telecom, and Media sectors: Up 4-6%
BSE Midcap index: Up 4%
BSE Smallcap index: Up 3%
Market Breadth
Advances: 2348 shares
Declines: 1008 shares
Unchanged: 74 shares
Volatility Index
India VIX: Dropped by 29.4%, settling at 18.885
Technical Analysis
Nifty Index
Support Levels: 22,000 and 21,800
Resistance Levels: 22,800 and 23,000
Moving Averages: Nifty touched its 100-day moving average at 21,786 and closed above its 21-day EMA.
Key Indicators: A close above 22,800 could signal a bullish reversal, potentially rising to 23,000 and beyond.
Bank Nifty Index
Support Levels: 47,800
Resistance Levels: 49,500
Strategy: Buy-on-dip with a stop-loss at 47,500
Technical Signal: Recovery from its 200-day moving average and closing above the rising trendline and 21-day EMA
Options Data
Call Side: Highest open interest at 22,800, followed by 23,000 strike prices.
Put Side: Highest open interest at 22,200 strike price.
Outlook
With the major event behind us, a gradual reduction in volatility is anticipated. Sustaining above the 22,600 level is crucial for a move towards 23,000. The 21,800-22,000 range should provide support in case of profit-taking. Defensive sectors such as FMCG, IT, and pharma remain favored, with a recommendation to be selective in other sectors.
Market Sentiment
The recovery was driven by broad-based buying across various sectors, bolstered by political stability. Investors are now focusing on the formation of the government and the forthcoming RBI policy meeting. The market does not expect any change in RBI’s policy stance due to persistent high food inflation and an expected increase in government spending, which has positively impacted FMCG stocks.
Conclusion
The Indian markets demonstrated a strong recovery, with key indices reclaiming significant ground. The positive close and the bullish signals from technical indicators suggest a potential upward trend, though monitoring key levels will be crucial for determining future movements. Investors are advised to adopt a cautious yet optimistic approach, focusing on defensive sectors and strategic buying on dips.
04 Jun
Closing Bell: Sensex Crashes 4,390 Points, Nifty Dips Below 22,000 as NDA Falls Short
Overview
Today`s market session was marked by a significant downturn, with benchmark indices experiencing sharp declines amid a wave of panic selling. The Nifty index closed at 21,844.50, down nearly 6%, effectively erasing the gains of the past four months. All key sectors, except FMCG, faced substantial losses, with PSUs, energy, and metals being the hardest hit. The broader indices, including the Midcap and Smallcap indices, also suffered heavy losses, each down around 8%.
Key Indices Performance
Nifty 50: Closed at 21844, down 5.93% (1,379 points).
Sensex: Closed at 72079, down 5.74% (4,389 points).
BSE Midcap: Fell by 8%.
BSE Smallcap: Fell by nearly 7%.
Sectoral Performance
PSUs, Energy, Metals: Faced the most significant declines.
FMCG: The only sector to remain in the green.
Realty, Telecom, Metal, Capital Goods, Oil & Gas, Power, PSU Bank: Down more than 10% each.
Key Support and Resistance Levels
Nifty
Immediate Support: 21,600
Crucial Support: 21,100 (200-day moving average and 50% Fibonacci retracement level)
Further Decline Support: 20,560 (61.82% Fibonacci retracement level)
Immediate Resistance: 22,310 - 22,550
Consolidation Range: 21,000 - 22,500
Bank Nifty
Immediate Support: 46,150 - 44,000 (200-day moving average and 38.2% Fibonacci retracement level)
Immediate Resistance: 48,600 - 49,200
Technical Analysis
The Nifty index has decisively broken down below the previous swing low of 21,820, violating the higher top and higher bottom formation. This suggests a change in the short-term trend, indicating potential retracement of the rise from 18,840 to 23,340 observed between October 2024 and May 2024. The daily chart shows a massive red candle, suggesting extreme pessimism and continued volatility.
Market Sentiment
The unexpected election outcome triggered fear selling, reversing the recent substantial rally. Despite this, market expectations of stability within the coalition, led by BJP, suggest a mitigated substantial downside in the medium term. The political shift towards social economic policies is expected to positively impact the rural economy.
Investment Strategy
Given the current market volatility and uncertainty:
Traders: Should remain cautious and limit trades until stability returns.
Investors: Can use this opportunity to accumulate quality stocks available at bargain prices.
Key Losers and Gainers
Biggest Losers on Nifty
Adani Ports
Adani Enterprises
ONGC
NTPC
SBI
Biggest Gainers on Nifty
HUL
Nestle
Britannia Industries
Hero MotoCorp
Tata Consumer Products
Conclusion
Today`s sharp market decline, driven by election results and subsequent panic selling, has altered the short-term market trend. With key indices breaching critical support levels and forming bearish patterns on the charts, caution is advised for traders. Investors, however, might find this downturn an opportune moment to invest in quality stocks. The market is expected to remain choppy, and participants should wait for signs of stability before making significant trading decisions.
01 Jun
Technical Analysis Report: Nifty`s Market Outlook Amid Election Result Week
Summary
Nifty formed a long-legged Doji candle on the daily charts, marking a potential change in market sentiment after a five-day losing streak. The index closed 42 points higher at 22,531, bouncing back near the 50-day SMA (Simple Moving Average). Despite this recovery, the market faces potential volatility due to upcoming election results and other macroeconomic factors.
Key Technical Indicators
50-DMA (Day Moving Average): Positioned around the 22,400 level. A breach below this could see Nifty testing the 22,300-22,260 zone.
Resistance Level: Crossing 22,660 could signal a resumption of the bullish trend.
14-Day RSI (Relative Strength Index): At 50.33 and falling, remaining below its 9-day EMA (Exponential Moving Average), indicating weakening momentum.
Historical Context and Election Impact
2004: Nifty fell 20% in two days when UPA unexpectedly won, recovering 45% in the next six months due to a global bull run.
2009: Nifty rose 18% as UPA won more seats than anticipated, benefiting from post-GFC recovery.
2014 & 2019: Markets had factored in BJP`s majority win ahead of results, leading to less dramatic movements.
Market Sentiment
Current Correction: Nifty has corrected around 2% from its all-time high, possibly factoring in a reduced majority for the incumbent government. However, other global events are also influencing the market.
Forward-Looking Nature: Markets often incorporate expected outcomes in advance, reversing only on unexpected surprises.
Trading Strategy
For New Traders:
Avoid Trading: High-volatility days like election results day are risky. Market movements can be erratic, driven by sentiment rather than fundamentals.
For Long-Term Investors:
Stay the Course: Election day volatility is a short-term event. Maintain SIPs in stocks, WealthBaskets, and mutual funds. Focus on long-term wealth creation and the ongoing structural bull run in India.
Ignore Short-Term Movements: Historical data shows that despite short-term volatility during elections, markets generally revert to fundamental trends.
Potential Risks
Election Results: Unexpected outcomes can lead to short-term volatility. Market expectations will evolve until exit polls.
Global Events:
Geopolitical Tensions: Re-escalation in Eastern Europe or the Middle East could disrupt markets.
Federal Reserve Policy: Shifts from dovish to hawkish stances could lead to interest rate changes, impacting investor sentiment.
Conclusion
While the Nifty has shown signs of resilience, the upcoming election results present a significant event risk. Long-term investors should not alter their strategies based on short-term volatility. However, it is crucial to monitor global macroeconomic developments, as they can have substantial impacts on market movements.
Maintaining a focus on long-term investment goals, while being aware of potential short-term disruptions, is key. The fundamental strength of the Indian market, combined with a cautious approach to high-volatility events, will likely yield the best outcomes for investors.
Actionable Insights
Avoid Short-Term Trades: Especially on election results day due to unpredictable volatility.
Continue SIPs: For long-term investors, ensuring steady investment in mutual funds and stocks.
Monitor Global Events: Stay informed about geopolitical developments and Federal Reserve policies that could impact market sentiment.
By adhering to these guidelines, investors can navigate the election result week with greater confidence and less risk of significant losses.
31 May
NIFTY OUTLOOK & OPTION CALL TIPS FOR 3 JUNE 2024
On May 31, the market exhibited extreme volatility ahead of the GDP data announcement expected later in the day and the Lok Sabha general election `Exit Poll` results scheduled for June 1. Despite this volatility, the market managed to close on a positive note, snapping a five-day losing streak.
Market Performance
Sensex: Closed up by 75 points, ending at 73961.
Nifty: Closed up by 42 points, ending at 22530.
Weekly Performance
For the week, both the BSE Sensex and Nifty50 shed nearly 2 percent each, reflecting the overall market uncertainty and volatility.
Intraday Movement
Nifty: The market opened positive, starting the June F&O series above 22,550. It experienced rangebound movement throughout the day but ended higher.
Top Nifty Gainers: Adani Enterprises, Adani Ports, Shriram Finance, Coal India, Tata Steel.
Top Nifty Losers: Divis Labs, Nestle India, LTIMindtree, Maruti Suzuki, TCS.
Sectoral Performance
Positive Performers: Metal, power, telecom, and realty sectors were up by 1-2 percent.
Negative Performers: Media, FMCG, healthcare, and IT sectors were down by 0.3-1 percent.
Midcap and Smallcap Indices
BSE Midcap Index: Ended flat.
BSE Smallcap Index: Gained 0.8 percent.
52-Week Highs
130 stocks touched their 52-week highs on the BSE. Notable among them were Blue Star, Coromandel International, Emami, Fortis Healthcare, GlaxoSmithKline Pharmaceuticals, Godawari Power, J Kumar Infra, Jindal Stainless, Jupiter Wagons, KNR Construction, Samvardhana Motherson International, Oberoi Realty, and TVS Holdings.
Nifty Analysis
The Nifty remained volatile within a narrow range as investors awaited the election results. The highest call writing is visible at 23000, while significant put writing is at 22500. This suggests that the Nifty might oscillate between 22500 and 23000 in the next few days. A fall below 22500 could trigger a correction towards 22000.
Crucial Levels:
Support: 22420-22313
Resistance: 22820-22900
Bank Nifty Analysis
Bank Nifty saw a sharp recovery from its 21-day EMA, closing near the resistance level of 49000. The RSI is making higher lows and heading towards a bullish crossover. A buy-on-dips strategy is advisable with a stop loss at the 21-day EMA, placed at 48500. Therefore, 48500 is strong support and 49200 is the first resistance. If Bank Nifty breaks 49200 on the daily chart, it could soon reach 50000.
Crucial Levels:
Support: 48600-48500
Resistance: 49700-49800
Conclusion
The market managed to close positively despite the high volatility, largely driven by mixed global cues and anticipation of significant upcoming events. Investors are advised to watch crucial levels closely as breakouts or breakdowns from these levels could determine the short-term direction of the market.
29 May
NIFTY BANKNIFTY OUTLOOK & TRADING TIPS FOR 30 MAY 2024
Overview
Indian benchmark indices ended in the red for the fourth consecutive session on May 29, 2024. The Nifty 50 closed at 22,704, down 183 points while the Sensex fell by 667 points finishing at 74,502 Despite broader indices performing relatively better, the market witnessed significant pressure across most sectors, particularly in banking, financials, and IT.
Key Indices Performance
Nifty 50: 22,704 (-0.80%)
Sensex: 74,502 (-0.89%)
BSE Midcap Index: -0.4%
BSE Smallcap Index: +0.2%
Market Sentiment
Bears dominated the market, leading to a sharp decline in the Nifty. Heavy call writing was observed at the 23,000 and 22,800 strikes, while put writing was significant at the 22,800 and 22,700 strikes. This option data indicates a likely expiry around 22,800 for Nifty. However, a dip below 22,700 could trigger additional selling pressure. Immediate resistance is positioned at 22,800.
Bank Nifty
The Bank Nifty index showed a clear negative sentiment, opening below its support level at 49,000 and closing near its 21-day EMA at 48,400. A failure to sustain above this level could drive the index down to 48,000. Therefore, 48,400 now serves as the support level, with 49,000 as the resistance.
Sectoral Performance
Top Losers: Banking, Financials, IT
Top Performers: Pharma, Metal
Despite the overall market decline, the broader indices (midcap and smallcap) performed relatively better, finishing nearly flat to slightly negative. Selling pressure was more pronounced in index stocks, whereas mid and smallcap segments managed to hold their recovery, outperforming the frontline index.
Sectoral Indices
Capital Goods, Telecom, Healthcare, Metal, Power: Ended in the green
Auto, Bank, FMCG, IT, Oil & Gas, Realty: Declined by 0.3-1%
Market Breadth
Advancing Shares: 1473
Declining Shares: 1871
Unchanged Shares: 90
Notable Movements
Biggest Nifty Losers
HDFC Life
SBI Life Insurance
ICICI Bank
Tata Consumer Products
Tech Mahindra
Biggest Nifty Gainers
Hindalco
Power Grid Corp
Divis Labs
Nestle
Sun Pharma
Technical Analysis
On the daily chart, Nifty breached its immediate support at 22,780. Considering the monthly expiry day tomorrow, a short covering move might lift the index above the 22,780 level. However, the market remains cautious, especially with the approach of the May derivatives contracts expiry, which is likely to maintain high volatility.
Global Cues
Weak global cues and profit-taking ahead of the US core PCE data, a critical gauge of inflation, contributed to the bearish sentiment. Rising global inflation, particularly in Japan and Australia, has dampened investor expectations of a near-term US Federal Reserve rate cut. This has resulted in broad-based weakness across sectors, with financials and IT facing significant underperformance.
28 May
NIFTY OUTLOOK & TRADING TIPS FOR 29 MAY 2024
Overview
The Indian benchmark indices experienced a volatile trading session on May 28, 2024, with both the Sensex and Nifty closing lower. The Sensex declined by 220.05 points (0.29%) to 75,170.45, while the Nifty fell by 44.30 points (0.19%) to 22,888.20.
Nifty Performance
Nifty witnessed another day of consolidation, opening on a positive note but succumbing to profit booking at higher levels. The index closed with a loss of approximately 44 points, forming another bearish candle on the daily chart. Over the past three trading sessions, Nifty has been consolidating around the 23,000 mark. This trend is expected to continue until the expiry of the May series, with potential retests of the breakout zone between 22,800 and 22,750.
Key Levels
Support: 22,800 (coincides with 40-hour moving average)
Resistance: 23,110 (immediate resistance)
Consolidation Range: 22,700 - 23,100
Sectoral and Stock Performance
Top Nifty Losers: Adani Ports, Power Grid Corp, Coal India, Adani Enterprises, BPCL.
Top Nifty Gainers: Divis Laboratories, SBI Life Insurance, HDFC Life, Grasim Industries, Hero MotoCorp.
Sectoral Performance:
Top Performers: Pharma, Media.
Underperformers: Oil & Gas, Capital Goods, Telecom, PSU Bank, Power, Realty (down 1-2%).
Broader Market Indices
BSE Midcap: Down 0.5%.
BSE Smallcap: Down 1%.
Bank Nifty
The Bank Nifty index experienced some profit booking at higher levels, closing down approximately 140 points. Despite this, the overall outlook remains positive, with the recent dip viewed as routine profit booking rather than a trend reversal.
Key Levels
Support: 49,000 - 48,800
Resistance: 49,350 - 49,500
Momentum Indicators: RSI at 61, maintaining above 14-day EMA
Market Sentiment
The market exhibited mild consolidation post the recent sharp surge. With uncertainty and elevated India VIX, volatility is expected to persist as the market approaches the election outcome.
Trading Strategy
Nifty: Traders should utilize dips towards the lower end of the 22,700 - 23,100 range to accumulate quality largecap and large midcap stocks.
Bank Nifty: A buy-on-dips strategy is recommended, with a stop-loss at 48,700.
Call and Put Writing
Significant call writing was observed at the 23,000 strike price, followed by 23,100 and 22,900 strikes, indicating strong resistance at these levels. The decline in the Put-Call Ratio (PCR) due to less active put writing suggests a cautious market stance.
Conclusion
The Nifty`s ongoing consolidation phase is likely to persist, maintaining the index within the 22,700-23,100 range. Despite the consolidation, the underlying earnings growth for the March quarter has been above expectations, which supports current valuations. Traders are advised to focus on accumulating quality stocks during dips and closely monitor the performance of IT and FMCG sectors for further cues. The market`s volatility is expected to continue, driven by external uncertainties and domestic economic indicators.
27 May
Stock Market Report Nifty Outlook For Tomorrow: May 27, 2024
Overview
Today`s trading session on Indian equity indices saw a mixed performance with Bank Nifty showing significant activity and Nifty50 closing on a flat note after an initial rally. Key levels of support and resistance were tested across various indices, influencing market sentiment and investor actions.
Bank Nifty
Bank Nifty opened strong, surpassing the 49,000 resistance level. However, it faced substantial selling pressure in the 49,600-49,800 range, establishing 49,600 as a new resistance level. Notable put writing at the 49,000 strike price signals robust support at this level. The overall sentiment remains bullish, and a buy-on-dip strategy is recommended with a stop loss at 48,900. If Bank Nifty closes above 49,600, it could potentially move towards the 50,000 mark.
Key Levels:
Support: 49,000
Resistance: 49,600, 50,000
Stop Loss: 48,900
Nifty50
Nifty50 began the week at a new high of 23,039, driven primarily by banking sector gains. However, the index faced profit-booking pressure in the last session, leading to a close at 22,932.45, down by 24.65 points. A bearish candle formed at record levels suggests a possible retest of the strong support at 22,780, with immediate resistance at 23,110.
Key Levels:
Support: 22,780
Resistance: 23,110
Market Sentiment
The overall market sentiment remains positive, bolstered by better earnings growth, expectations of a revival in private capital expenditure (capex), and a reduction in Foreign Institutional Investors (FII) selling intensity. Upcoming economic data, including India`s Q4 GDP and US inflation figures, will likely influence market direction in the near term.
Sectoral Performance
Top Performing Sectors: Banking, Realty, and Information Technology (IT) indices, each gaining 0.5%.
Underperforming Sectors: Oil & Gas, Power, and Media sectors, down by 0.5-1%.
Equity Indices Summary
Sensex: Down 19.89 points or 0.03% to 75,390.50
Nifty: Down 24.60 points or 0.11% to 22,932.50
Top Gainers and Losers
Gainers:
Divis Labs
IndusInd Bank
Axis Bank
LTIMindtree
Adani Ports
Losers:
Adani Enterprises
Wipro
Grasim Industries
ONGC
SBI Life Insurance
Broader Market Indices
BSE Midcap: Up 0.6%
BSE Smallcap: Ended flat
IPO Update: Awfis Space Solutions
Awfis Space Solutions` Initial Public Offering (IPO) witnessed strong investor demand, with the issue being subscribed 76.43 times on the final day of bidding. The IPO, valued at Rs 599 crore, includes a fresh issue of shares worth Rs 128 crore and an Offer-for-Sale (OFS) of 1,22,95,699 equity shares by existing shareholders. The price band was set at Rs 364-383 per share.
Subscription Details:
Non-Institutional Investors: 110.37 times
Retail Investors: 46.27 times
Qualified Institutional Buyers (QIBs): 70.19 times
Employee Segment: 20.93 times
Conclusion
Today`s session highlighted key resistance and support levels across indices, with the banking sector playing a pivotal role in market movements. Investors are advised to watch the upcoming economic data releases closely, as they will likely provide further market direction. The overall bullish sentiment and strong IPO interest indicate sustained investor confidence in the market`s growth potential.
24 May
Navigating the Nifty: What to Do When the Index Hits an All-Time High
Introduction
The Nifty 50, a benchmark index of the National Stock Exchange (NSE) in India, is a barometer of the Indian equity market`s performance. Reaching an all-time high can be an exciting and intimidating moment for investors. While it signifies optimism and potential for further growth, it also raises questions about the appropriate investment strategies. In this report, we`ll explore what investors can do when the Nifty hits an all-time high.
Assess Your Portfolio
When the Nifty reaches a new peak, it`s a good time to review your investment portfolio. Evaluate whether your portfolio aligns with your financial goals, risk tolerance, and time horizon. Consider rebalancing your portfolio if certain assets are overweighted or underweighted based on your investment strategy.
Key Actions:
Review Asset Allocation: Ensure that your current asset mix aligns with your risk tolerance and financial goals.
Identify Overweight/Underweight Positions: Adjust holdings that have deviated from your target allocation.
Align with Financial Goals: Ensure your investments are still appropriate for your long-term objectives.
Stay Disciplined
One of the cardinal rules of investing is to stay disciplined regardless of market conditions. Just because the Nifty has reached a new high doesn`t mean you should abandon your investment strategy or chase returns. Market timing is notoriously difficult, and attempting to do so can lead to costly mistakes. Stick to your long-term investment plan and avoid making impulsive decisions based on short-term market movements.
Key Actions:
Adhere to Your Strategy: Maintain your long-term investment strategy.
Avoid Impulsive Decisions: Refrain from making investment changes based on short-term market movements.
Diversify Your Investments
Diversification is key to managing risk in your investment portfolio. Instead of trying to time the market or concentrate your investments in a few stocks, consider diversifying across different asset classes, sectors, and geographies. This can help mitigate the impact of market volatility and reduce the risk of significant losses.
Key Actions:
Diversify Asset Classes: Invest across various asset classes such as equities, bonds, and real estate.
Spread Across Sectors: Allocate investments across different sectors to avoid sector-specific risks.
Global Exposure: Consider international investments to diversify geographic risk.
Focus on Quality
In a bull market, it`s easy to get caught up in the hype and invest in speculative or overvalued stocks. However, it`s essential to focus on the quality of the companies you`re investing in. Look for companies with strong fundamentals, competitive advantages, and sustainable growth prospects. Avoid chasing hot stocks or blindly following market trends.
Key Actions:
Fundamental Analysis: Invest in companies with strong financial health and growth potential.
Avoid Speculation: Stay away from speculative or overhyped stocks.
Rebalance Regularly
Regularly rebalancing your portfolio can help maintain your desired asset allocation and risk profile. When the Nifty hits an all-time high, it may be a signal to trim positions in assets that have performed well and reallocate funds to assets that are relatively undervalued. Rebalancing forces you to sell high and buy low, which is a fundamental principle of investing.
Key Actions:
Scheduled Rebalancing: Set regular intervals (e.g., quarterly or annually) to review and rebalance your portfolio.
Trim and Reallocate: Reduce positions in overperforming assets and reinvest in undervalued ones.
Consider Systematic Investment
Systematic investment plans (SIPs) can be an effective way to invest in the stock market, especially during periods of high volatility. Instead of trying to time the market, SIPs allow you to invest a fixed amount regularly, regardless of market conditions. This strategy can help smooth out the impact of market fluctuations and take advantage of rupee-cost averaging.
Key Actions:
Regular Contributions: Invest fixed amounts at regular intervals through SIPs.
Rupee-Cost Averaging: Benefit from averaging out the cost of investments over time.
Stay Informed
Finally, stay informed about market developments, economic indicators, and geopolitical events that could impact the stock market. While it`s essential to avoid reacting impulsively to short-term noise, being aware of broader trends can help you make more informed investment decisions.
Key Actions:
Market Updates: Keep up with financial news and market trends.
Economic Indicators: Monitor key economic indicators and their potential impact on the market.
Conclusion
Reaching an all-time high can be a significant milestone for the Nifty and for investors. While it`s natural to feel optimistic during such times, it`s crucial to maintain a disciplined and diversified approach to investing. By assessing your portfolio, staying disciplined, diversifying your investments, focusing on quality, rebalancing regularly, considering systematic investment, and staying informed, you can navigate the Nifty`s highs with confidence and prudence.
23 May
NIFTY OUTLOOK & OPTION TRADING TIPS FOR 24 MAY 2024
Overview
Indian benchmark indices surged to record highs on May 23, 2024, driven by strong performance in the banking and automotive sectors. The Sensex closed at 75,418, up 1,196 points (1.61%), while the Nifty ended at 22,967, up 369 points (1.64%).
Market Highlights
Sensex: 75,418 (+1,196 points, +1.61%)
Nifty: 22,967 (+369 points, +1.64%)
Market Breadth: 1,577 shares advanced, 1,761 shares declined, 112 shares unchanged.
Sectoral Performance
Top Performing Sectors:
Automotive: Significant gains, leading the market rally.
Banking: Strong performance, contributing heavily to index gains.
IT: Positive momentum, supporting overall market growth.
22 May
NIFTY OUTLOOK & OPTION TRADING TIPS FOR 23 MAY 2024
Overview
The Indian stock market ended on a positive note amid volatility on May 22, with the Nifty closing around 22,600. The Sensex was up by 267 points or 0.36% at 74,221, while the Nifty gained 68 points or 0.31% to settle at 22,597. Despite fluctuating within a narrow range for most of the session, the market managed to close with modest gains.
Nifty Analysis
Nifty continues to exhibit a bullish trend, supported by the 22,500 level. The index is moving higher within a rising channel and is expected to maintain its strength as long as it stays above this support level. The short-term target for Nifty is 22,800, with immediate support at 22,600. A drop below 22,600 might push the index briefly towards 22,500.
The formation of back-to-back green candles on the daily chart signals strong bullish momentum. The immediate hurdle for the index stands at its previous high of 22,780, while the support level has shifted higher to 22,470.
Sector Performance
Top Gainers: FMCG and Realty sectors led the gains, each rising by 1%. Energy also performed well, contributing to the index`s recovery.
Lagging Sectors: The Metal and Banking sectors underperformed, with the banking index down 0.5% and the metal index shedding 0.4% after a round of profit booking following a previous rally.
Other Sectors: Capital Goods, IT, and Media sectors each gained 0.5%.
Broader Market
Midcap Segment: The BSE midcap index ended on a flat note.
Smallcap Segment: The smallcap index increased by 0.2%, although smallcaps ended the day in the red.
Market Breadth
The market breadth was mixed, with 1,612 shares advancing, 1,734 shares declining, and 103 shares remaining unchanged. This indicates a balanced market sentiment with slight tilt towards more declines.
Notable Performers
Major Gainers on Nifty: Cipla, HUL, Tata Consumer Products, Coal India, and Britannia Industries.
Major Losers on Nifty: SBI, Hindalco Industries, Shriram Finance, Hero MotoCorp, and Apollo Hospitals.
Recommendations
Given the market`s choppiness, a stock-specific approach is recommended. Investors should consider using dips or periods of consolidation to accumulate quality stocks. The market`s bullish momentum suggests a potential retest of its record high soon, supported by gains in key sectors despite the banking sector`s underperformance limiting the overall momentum.
Conclusion
The Indian stock market`s modest gains amid volatility suggest resilience, with strong sector-specific performances, particularly in FMCG and Realty. The Nifty`s bullish trend, supported by technical indicators, points towards a potential continuation of upward momentum, provided it maintains its critical support levels.
21 May
NIFTY BANKNIFTY OUTLOOK FOR TOMORROW 22 MAY 2024
Overview
On May 21, 2024, the Indian stock market exhibited a volatile trading session, closing on a mixed note with benchmark indices ending flat. The Sensex declined by 52.63 points (0.07%) to close at 73,953.31, while the Nifty 50 gained 27 points (0.12%), finishing at 22,529.05.
Key Market Movements
Nifty 50 Performance: The Nifty 50 opened negatively but recovered to close in the green. The index traded within a range of 22,400 to 22,600, with strong put writing at 22,400 and 22,500 levels providing support.
Sensex Performance: The Sensex experienced a slight dip, ending 52.63 points lower.
Technical Analysis
Nifty 50:
The index reached the 22,570-22,600 resistance zone, which corresponds to the 78.6% Fibonacci retracement level.
A bullish engulfing candle on the daily chart suggests buyer interest at lower levels.
A decisive move above 22,600 could trigger a rally towards 22,800. However, consolidation is expected within the 22,400 to 22,600 range due to the negative crossover in the hourly momentum indicator.
Long positions should maintain a stoploss at 22,400.
Bank Nifty:
The index consolidated in a narrow range, closing 151.30 points down at 48,048.20.
Support is identified at 48,000, while resistance at 48,400 aligns with the 20DMA.
A breakout above 48,400 could lead to further gains towards 48,700.
The hourly momentum indicator suggests sideways movement but no trend reversal; a trailing stoploss should be set at 47,400.
Sector Performance
Top Performing Sectors:
Nifty Metal: Gained 3.88%, with Hindalco being the biggest gainer (up 5.04%).
Energy and PSU Banking: Showed significant strength, contributing to the recovery of the Nifty 50.
Lagging Sectors:
Nifty FMCG: Declined by 0.45%, with Nestle being the biggest loser (down 1.74%).
Broader Market
Midcaps and Smallcaps:
The BSE Midcap Index rose by 0.4%, slightly outperforming the broader market.
The BSE Smallcap Index fell by 0.2%, indicating mixed activity in the broader market.
Currency Market
Indian Rupee:
The rupee traded positively, closing at 83.31 against the US dollar, supported by stability expectations from the current government and active buying by Domestic Institutional Investors (DIIs). The trading range is expected to be between 83.00 and 83.50 in the upcoming sessions.
Conclusion
The market`s flat closing in a volatile session indicates cautious investor sentiment. While the metal and energy sectors provided significant support, FMCG lagged behind. Technical indicators suggest potential consolidation for the Nifty 50 and Bank Nifty in the short term, with key support and resistance levels guiding future movements. Investors are advised to maintain cautious long positions with appropriate stoplosses.
20 May
5 Trading Strategies to Navigate Market Volatility This Election Season
Trading during election seasons requires careful consideration of market sentiment, potential volatility, and strategic approaches to navigate the uncertainties associated with such events. Here are five trading strategies to help manage market volatility during this time:
Volatility Trading Using Options
Increased uncertainty during elections often leads to higher market volatility. Options trading strategies like straddles or strangles can be effective for profiting from price swings or hedging against unexpected market moves. These strategies allow traders to take advantage of large price movements, regardless of direction.
Sector Rotation Based on Political Promises
Political parties typically make promises that can significantly impact specific sectors such as infrastructure, healthcare, or technology. Traders can capitalize on this by rotating investments into sectors expected to benefit from the winning party`s agenda. By anticipating which industries will be favored, traders can position themselves for potential gains.
Safe-Haven Assets in Uncertain Times
During election periods, investors often seek refuge in safe-haven assets like gold, government bonds, or defensive stocks. This strategy aims to protect capital during market turbulence, offering a safer investment approach when market conditions are unpredictable.
Event-Driven Stock Picks
Certain stocks can be directly influenced by election outcomes or related events. Identifying and trading these opportunities based on election results or political developments can yield profitable returns. This strategy involves staying informed about political news and understanding how specific companies may be impacted by the changing political landscape.
Technical Analysis Amidst Political News
Combining technical analysis with political news and election polls can provide insights into market sentiment and potential price movements. Traders can leverage chart patterns and indicators to make informed decisions, using technical tools to predict and react to market trends influenced by political events.
By employing these strategies, traders can better navigate the complexities and opportunities presented by market volatility during election seasons.
17 May
Weekly Market Report: Indian Equity Markets
Overview
The Indian equity markets experienced a week of mixed global cues and cautious investor sentiment, yet managed to close in positive territory. Key indices, including Nifty and Bank Nifty, demonstrated resilience by maintaining critical technical levels and witnessing sectoral rotation.
Key Indices Performance
Nifty: Opened flat, ended the week at 22,480, marking a slight increase from the previous session. The index maintained a strong hold above the 21-day exponential moving average (21-DEMA) positioned at 22,320 levels, suggesting potential for further rally up to 22,600. However, caution is advised as the index nears the previous resistance level of 22,800.
Bank Nifty: Despite initial weakness, closed the week positively at 48,116. The index overcame the 21-DEMA hurdle at 48,050, indicating strength with potential targets at 48,500-48,700 levels. The lower-end support is placed at 47,600-47,500, with a bullish outlook as long as it sustains above these levels.
Sensex: Closed at 73,916 points, up by 0.34%.
BSE MidCap: Surged by 1.2%, hitting a new record high.
BSE SmallCap: Increased by 1.4%, nearing its all-time peak.
Sectoral Performance
Gainers: The real estate, auto, and metal sectors led the gains. Strong Q4 earnings and positive sentiment towards domestic fundamentals fueled buying interest.
Laggards: IT and pharma sectors closed in the red, reflecting sector-specific challenges and investor rotation towards other sectors.
Technical Analysis
Nifty: Holding above the 21-DEMA at 22,320 levels is crucial for the continuation of the rally towards 22,600. Traders should be cautious near 22,800 due to the formation of a bearish engulfing candle in the past.
Bank Nifty: Strength above the 21-DEMA at 48,050 suggests potential upside to 48,500-48,700. Key resistance is at the 20DMA (48,200). A break above this could lead to further upside towards 49,000.
Market Sentiment and Trends
Investor Focus: Despite adverse global market sentiment, investors remained focused on domestic fundamentals, buying into metal, oil & gas, auto, and realty shares.
Volatility: Intra-day volatility was prevalent, reflecting cautious investor sentiment during the election season. However, selective buying in mid and small-cap stocks continued.
Rupee Movement: A sharp fall in the rupee against the dollar was seen as a positive development, potentially reversing foreign portfolio investor (FPI) outflows.
Strategy and Recommendations
Buy on Dips: Given the positive earnings momentum and sectoral rotation, maintaining a "buy on dips" strategy is advisable. Focus on stock selection, particularly in outperforming sectors like auto and consumer durables.
Profit Booking: As Nifty approaches the resistance at 22,800, traders are advised to take some profits off the table.
Watch Key Levels: For Bank Nifty, sustaining above 47,600-47,500 levels is crucial for maintaining a bullish view. Monitor the 20DMA (48,200) for potential breakout opportunities.
Conclusion
The Indian equity markets ended the week on a positive note, driven by strong domestic fundamentals and sectoral rotation. While global uncertainties and intra-day volatility present challenges, the overall market sentiment remains cautiously optimistic. Investors are recommended to adopt a balanced approach, focusing on selective buying and profit booking near critical resistance levels. This weekly report provides a snapshot of the market performance, key trends, and strategic insights for investors navigating the current market environment.
17 May
Demystifying the Put-Call Ratio: Understanding Its Significance in Options Trading
In the world of options trading, there exists a multitude of indicators and metrics, each offering insights into market sentiment and potential future movements. Among these, the put-call ratio stands out as a key tool for investors and traders alike. But what exactly is the put-call ratio, and why is it significant? Let’s delve into this fundamental concept and explore its implications for the options market.
Understanding the Put-Call Ratio
At its core, the put-call ratio is a simple yet powerful metric that compares the trading volume of put options to that of call options within a specific time frame. Put options give the holder the right to sell an underlying asset at a predetermined price (the strike price) within a specified period, while call options grant the holder the right to buy the asset at the same terms.
The put-call ratio is calculated by dividing the total number of outstanding open interest in put options by the total open interest in call options. This ratio provides insights into market sentiment and can be indicative of potential shifts in investor sentiment or market direction.
Interpreting the Put-Call Ratio
Contrarian Indicator: One of the primary uses of the put-call ratio is as a contrarian indicator. When the ratio is relatively high, indicating a significant increase in put buying compared to call buying, it suggests that investors may be bearish on the market or a particular asset. Conversely, a low put-call ratio, signaling heightened call buying relative to puts, may indicate bullish sentiment.
Market Sentiment: The put-call ratio can also provide insights into broader market sentiment. A consistently high ratio over an extended period may suggest increasing fear or uncertainty among investors, potentially signaling a market downturn. Conversely, a consistently low ratio could indicate complacency or excessive optimism, which may precede a market correction.
Options Trading Strategies: Options traders often use the put-call ratio to inform their trading strategies. For example, a high put-call ratio may prompt contrarian traders to consider buying calls or selling puts, anticipating a potential market rebound. Conversely, a low put-call ratio may lead traders to hedge their positions or consider protective strategies, such as buying puts or selling calls.
Limitations of the Put-Call Ratio
While the put-call ratio can provide valuable insights into market sentiment, it`s essential to recognize its limitations. Firstly, like any indicator, it is not foolproof and should be used in conjunction with other technical and fundamental analysis tools. Additionally, the put-call ratio may be subject to manipulation or distortion by institutional investors or market makers, particularly in thinly traded options.
Conclusion
In the dynamic world of options trading, the put-call ratio serves as a valuable gauge of market sentiment and potential future movements. By analyzing the ratio and understanding its implications, traders can make more informed decisions and adapt their strategies accordingly. While the put-call ratio is not without its limitations, its utility as a contrarian indicator and sentiment gauge makes it a valuable tool in the arsenal of options traders worldwide.
17 May
Decoding Option Strike Prices: A Guide to Making Informed Choices
In the exciting realm of options trading, selecting the right strike price is akin to choosing the perfect entry point on a treasure map. It`s a crucial decision that can significantly impact your profitability and risk exposure. Whether you`re a seasoned trader or just dipping your toes into the options market, understanding how to choose the optimal strike price is essential for success. In this guide, we`ll delve into the intricacies of strike prices and provide practical tips to help you make informed decisions.
Understanding Strike Prices
Before we delve into the selection process, let`s ensure we`re on the same page regarding what strike prices represent.
Definition: The strike price of an option is the price at which the underlying asset can be bought (in the case of a call option) or sold (in the case of a put option) if the option is exercised.
Factors to Consider
Market Outlook: Your strike price selection should align with your outlook on the underlying asset. If you`re bullish, you might opt for a call option with a strike price slightly above the current market price. Conversely, if you`re bearish, you may choose a put option with a strike price slightly below the current market price.
Volatility: High volatility typically leads to higher option premiums. If you expect volatility to increase, you might consider selecting a strike price closer to the current market price to benefit from potential price swings.
Time Horizon: Your time horizon plays a crucial role in strike price selection. If you`re trading short-term options, you might opt for strike prices closer to the current market price to capitalize on short-term movements. For longer-term options, you might choose strike prices further out-of-the-money to reduce premium costs.
Risk Tolerance: Consider your risk tolerance when choosing strike prices. Deep in-the-money options offer a higher probability of profit but come with higher upfront costs. Out-of-the-money options are cheaper but come with a lower probability of profit. Assess your risk appetite and choose strike prices accordingly.
Liquidity: Opt for strike prices with sufficient liquidity to ensure ease of entry and exit. Illiquid options can lead to wider bid-ask spreads, potentially eroding your profits.
Underlying Asset Characteristics: Different assets exhibit varying price behaviors. For instance, highly volatile stocks may warrant more conservative strike price selections to mitigate risk, while stable stocks may allow for more aggressive strike price choices.
Common Strategies
At-the-Money (ATM)
Options: These options have strike prices closest to the current market price. They offer a balance between cost and probability of profit but may require larger price movements to become profitable.
Out-of-the-Money (OTM) Options: OTM options have strike prices above (for calls) or below (for puts) the current market price. They are cheaper but have a lower probability of profit. They`re often favored for speculative strategies or when capital preservation is a priority.
In-the-Money (ITM) Options: ITM options have strike prices below (for calls) or above (for puts) the current market price. They have a higher upfront cost but offer a higher probability of profit. They`re favored for conservative strategies or when seeking directional exposure with reduced risk.
Conclusion
Choosing the right strike price is both an art and a science. It requires a deep understanding of market dynamics, risk management principles, and individual trading goals. By considering factors such as market outlook, volatility, time horizon, risk tolerance, liquidity, and underlying asset characteristics, you can make informed decisions that align with your trading strategy. Remember, there`s no one-size-fits-all approach, so be sure to tailor your strike price selection to your unique circumstances and objectives. With practice and experience, mastering the art of strike price selection can unlock new opportunities and enhance your overall trading success. Happy trading!
14 May
NIFTY PREDICTION & TRADING TIPS FOR 15 MAY 2024
Overview:
Indian benchmark indices concluded a volatile yet positive session on May 14, 2024, primarily fueled by widespread buying activity across sectors. The Nifty Metal sector led the upswing, followed by gains in Nifty Realty and Nifty Auto. The Sensex closed up by 0.45% at 73,104, while the Nifty surged by 0.51% to reach 22,217.
Technical Analysis:
The Nifty index shows signs of a potential reversal from its daily trendline, supported by robust volume, indicating a bullish reversal. Sustained closure above the 22,300 level, where the 20-day Exponential Moving Average (EMA) resides, may extend the upward trajectory towards 22,600 and 22,800 levels. The Relative Strength Index (RSI) stands at 47.30, indicating a growing bullish momentum. Support levels are anticipated at 22,000 and 21,800.
Options Analysis:
Nifty put options show a concentration of Open Interest (OI) at the 22,000 level, suggesting potential support. Significant OI concentrations on the Call side are observed at 22,500 and 22,600 levels, nearing all-time highs.
Sectoral Performance:
Metal index outperformed with a rally of 2.70%, while Healthcare stocks witnessed intraday profit booking despite strong momentum. Mixed trends were observed across sectors, with auto and metal sectors showing gains, while defensive sectors like FMCG and pharma saw profit-taking.
Market Sentiment:
Investors remain cautious ahead of the upcoming U.S. CPI data, expecting a slight increase that could impact rate cut expectations. Volatility and range-bound trading are likely to persist due to ongoing uncertainty surrounding the low turnout during the polling season.
Outlook:
The market continued its rebound, but the Nifty approaching the hurdle zone around 22,300 might lead to a pause or a corrective phase. However, decreased volatility could limit the decline. The mixed sectoral trend presents opportunities for traders on both sides of the market, necessitating careful position planning.
02 May
Indian Benchmark Indices Show Volatility, End Higher
Summary:
Indian benchmark indices experienced a volatile trading session on May 2, ultimately closing higher. The Nifty hovered around 22,650, while the Sensex gained 128.33 points, or 0.17 percent, closing at 74,611.11. The Nifty ended up 43.40 points, or 0.19 percent, at 22,648.20. Despite the overall positive close, trading remained lackluster with mixed sectoral performances.
Market Analysis:
The day began with a positive note for the Nifty but remained within a narrow range throughout the session. Sectors like auto, energy, and metal witnessed moderate gains, while banking and realty sectors closed in the red. Midcap stocks managed a modest uptick of around half a percent, outperforming the broader market.
Global Market Influence:
Global cues contributed to subdued sentiment with a mixed picture, albeit with an overall positive undertone. Investors remained cautious amid geopolitical tensions and economic uncertainties.
Technical Analysis:
On the daily charts, the Nifty showed consolidation after the previous trading session`s sell-off. Key levels to watch include 22,700 as crucial resistance and 22,450 as crucial support in the short term. The Bank Nifty witnessed selling pressure and closed lower, likely to consolidate with key support at 49,000–48,900 and resistance at 49,800–49,850.
Top Gainers and Losers:
Top gainers on the Nifty included BPCL, Power Grid Corporation, Asian Paints, Bajaj Auto, and Tata Motors. Meanwhile, Kotak Mahindra Bank, Bharti Airtel, Tata Consumer, Axis Bank, and HDFC Life were among the top losers.
Sectoral Performance:
Auto, metal, oil & gas, and power sectors saw gains of around 1 percent each, while the banking and realty sectors closed marginally in the red.
Broader Market Movement:
The BSE midcap index touched a fresh high and ended with a percent gain, indicating robust performance, while the smallcap index rose by 0.3 percent.
Recommendation:
Amidst the prevailing volatility, a strategy of buying during dips is recommended, emphasizing prudent stock selection and risk management. The banking sector`s performance is anticipated to be pivotal in generating fresh momentum.
Outlook:
Expectations point towards consolidation in both indices in the upcoming trading sessions, with key levels to watch for potential breakouts or reversals.
This report is for informational purposes only and should not be construed as financial advice. Investors are advised to conduct their own research before making any investment decisions.
01 May
NIFTY OUTLOOK & TRADING ADVICE FOR THURSDAY EXPIRY 2 MAY 2024
Market Performance:
The market initially saw positive momentum, with Nifty reaching a fresh high and Sensex nearing its record level, driven by gains in auto, power, and realty stocks. However, a surge in selling during the final trading hour wiped out these gains. Notable gainers on the Nifty included M&M, Power Grid Corporation, Shriram Finance, Hero MotoCorp, and Bajaj Auto, while Tech Mahindra, BPCL, JSW Steel, HCL Technologies, and Sun Pharma were among the top losers.
Sectoral Performance:
Sector-wise, auto, power, and realty sectors outperformed, each posting gains of more than 1%, while IT, metal, media, oil & gas, and healthcare sectors witnessed declines ranging from 0.4% to 1%.
Broader Market Indices:
The broader market indices displayed mixed performance, with the BSE midcap index reaching a new high and closing 0.5% higher, while the smallcap index ended flat.
Market Outlook:
Technical indicators suggest a mixed outlook for the market. While the ongoing positive trend remains intact according to the 20-day and 50-day Simple Moving Averages (SMA), today`s bearish candle and potential RSI divergence signal caution. A break and close above the day`s high could negate the bearish implications, while trading below 22,500 may lead to further downside towards the 22,400-22,360 zone.
Individual Stock Movement:
Several stocks including Ashok Leyland, Axis Bank, Eicher Motors, ICICI Bank, M&M, SBI, among others, touched their 52-week high on the BSE. Notable volume spikes were observed in TEC, Jubilant Foodworks, and Exide Industries. Long build-up was seen in REC, PFC, and M&M, while short build-up was observed in IOC, Birlasoft, and Aditya Birla Capital.
Conclusion:
The Indian stock market encountered volatility, erasing intraday gains to close lower amid sectoral fluctuations. While broader indices showed resilience, technical indicators suggest a cautious outlook with potential for further downside if key support levels are breached. Investor sentiment remains sensitive to global and domestic developments, warranting careful monitoring of market dynamics in the coming sessions.
06 Feb
NIFTY WEEKLY OUTLOOK & OPTION CALL PUT TIPS FOR 05 FEB TO 9 FEB 2024
A conservative interim budget failed to deter the market`s growth momentum, which continued to surge amid the pre-election rally. The substantial reduction in the fiscal deficit target contributed to a decline in bond yields, leading to lower corporate borrowing costs and heightened incentives for increased investment. Additionally, the Federal Reserve signaled a cautious approach to interest rate cuts until March `24, while reporting a cooling inflation trend in the US. Friday witnessed a volatile trading session, with the benchmark experiencing sharp fluctuations before closing with modest gains. Despite an initial surge that took Nifty towards its record high, the market couldn`t sustain those levels, and most gains were relinquished. Notably, energy, metal, and IT sectors recorded strong gains, while banking and FMCG sectors closed in the red. Small-cap indices managed to gain nearly a percent. The market concluded the Budget week with its most significant weekly gains in two months, as both the Sensex and Nifty rose by 2 percent each. Despite the Federal Reserve`s indication of no rate cuts until March `24, the benchmark equity indices ended on a positive note. Following a muted reaction to the Interim Budget in the previous session, the market posted substantial gains on February 2, reaching new highs. Nifty hit 22,126.80, and the Sensex rallied over 1,400 points.
However, profit-booking at higher levels led to a partial retreat from the day`s high, with the Sensex closing at 72,085, down 0.61%, and the Nifty closing at 21,853, down 0.72%.
Positive global cues and initial gains were offset by profit-booking, resulting in the Sensex closing 1,003 points lower than the day`s high, and the Nifty shedding 273 points from its peak.
Nifty Bank index turned negative, losing 0.5% after reaching an intraday high of 46,892 at 45,970. Maintaining the current Nifty level is crucial, as a failure could lead to a sideways trend. Sustainability above 22,150 is deemed necessary for a march towards 22,500+. Banking majors` consistent participation is critical for a steady trend; otherwise, the market may continue in a range-bound pattern.
Although Nifty surpassed 22,000, it formed a double top on the hourly chart, indicating caution. A decisive breakout above 22,125 is needed for confirmation of a bullish trend resumption. Conversely, a break below the support level at 21,500 may indicate bearish momentum. A breakout above 22,150 could propel Nifty towards 22,500 and beyond.
Daily and hourly momentum indicators present a divergent signal, and prices remain within a range, with Bollinger bands contracting, signaling range-bound price action. The consolidation is expected to persist, with stock-specific actions and sector rotations driving market movements. Key support levels are identified at 21,660 – 21,600, while an immediate hurdle zone is placed at 22,100 - 22,150.
Bank Nifty faced selling pressure around the 46,900 – 47,000 zone, aligning with the 61.82% Fibonacci retracement level. The short-term perspective suggests a consolidation phase for Bank Nifty in the range of 47,000 – 45,500.
06 Feb
NIFTY OUTLOOK & OPTION TRADING TIPS FOR 7 FEB 2024
On February 6, Indian benchmark indices rebounded from previous losses, closing higher with Nifty surpassing 21,900. The Sensex gained 454 points reaching 72186, while the Nifty rose by 157 points, closing at 21929. Despite a shaky start and overnight weakness in US stocks and mixed Asian indices, local investors stepped in to buy, particularly in IT, auto, metals, and oil & gas sectors. The day saw a predominantly sideways movement in the Nifty, reflecting trader uncertainty. Market participants anticipate continued range-bound trading until a breakout occurs. A decisive upward move beyond 22000 could push the Nifty towards 22250, while a decline below 21800 may trigger a correction towards 21500.
14 Jul
SENSEX & NIFTY AT ALL TIME : WILL NIFTY MAKE OR BREAK NEW HIGH?
Indian equities saw general weakness on 10 July 2023 but the benchmark was able to stay slightly positive with support from strong buying in heavyweight stocks. The weakness was led by IT stocks as the sector is expected to start the Q1 earnings season with weak earnings. In addition, signals from US markets are unfavorable as concerns about another rate hike linger despite expectations of a quick cool down in future US CPI inflation data. Benchmark indices ended the volatile session on July 10th with modest gains. At the end the Sensex was up 63 points to 65344 and the Nifty was up 24 points to 19355. Profit-taking in late trade wiped out most early gains as major indices ended a volatile trading session with modest gains. Hiccups were seen ahead of the US monetary policy meeting later this month. There are enough signs that the Fed will target a rate hike this month to keep inflation under control. On 11 July 2023 Domestic stocks traded in positive territory after an encouraging handover from their global peers. Nifty opened higher and held steady throughout the session to close up 84 points (+0.4%) at the 19,439 level. Auto, FMCG, pharmaceuticals and consumer discretionary were the biggest gainers, each up more than 1%. The defense sector was in the spotlight on the eve of the Indian Prime Minister`s visit to France, where several deals are likely to be signed, including a technology transfer agreement. Market now awaits Q1 results, IT sector starts tomorrow with expectations muted and focus on maintaining margin and improving long-term guidance. The upbeat sentiment is also supported by expectations of China`s stimulus to shore up economic growth and hopes for a softening US inflation data. India`s overall score is slightly above its long-term average, which is reasonable given strong earnings expectations for fiscal 2024. Pressures in the banking sector limit the upside while others are doing their best to propel the markets higher. While it may further delay the trend`s resumption, sentiment is likely to remain positive. The Indian equity markets started the12 july 2023 session on a mild note, but the benchmark index refrained from continuing its northward journey and witnessed a small bout of profit booking during the initial half of the session. The bulls recouped some of the losses from the intraday lows of 19400 but succumbed to the strong selloff in the penultimate hours and slipped below Tuesday’s low. Amidst the whipsaw moves, the Nifty50 index concluded the day in negative terrain with a cut of 0.28 percent and settled below 19400 level. Tracking the positive global bourses, the Indian indices witnessed a buoyant start on 13 july 2023, wherein the benchmark index soared to uncharted territory and kept momentum during the initial half of the day. However, bulls failed to sustain the higher grounds and lost their grip during the second half of the session, which pared down a significant portion of gains. Eventually, post the volatile day of trade, the Nifty50 index concluded the session around 19400 levels, procuring 0.15 percent from the last closure. The market continued to post record highs on July 14, mostly led by information technology stock. At close, the Sensex was up 502 points at 66060, and the Nifty was up 150 points at 19564.
NIFTY: STRONG SUPPORT& STRONG RESISTANCE LEVEL
For the trend following traders now, 19400 would be the trend decider level and could move up till 19800. Below 19400 , we could expect a one quick correction till 19400-19200.
TECHNICALLY SPEAKING
The market seems to be flooded with strong FII inflows, and with US inflation moderating investors are hoping for a rate hike pause by the Federal Reserve later this month. On daily and weekly charts, Nifty has formed a bullish candle along with a breakout formation on intraday charts, which supports a further uptrend from the current levels. For the trend-following traders now, 19400 would be the trend-decider level and could move up to 19800. Below 19400 , we could expect one quick correction till 19,400-19,300. For Bank Nifty, the 20-day SMA (Simple Moving Average) or 44,500 would be the trend decider level. Above the same, the index could retest the level of 45200 -45600. On the other side, below 44600 the Bank Nifty could slip to the 50-day SMA or 44,000.
20 Jun
NIFTY BANKNIFTY OUTLOOK & STOCKS FOR 21 JUNE 2023
Markets stabilized in a volatile trading session, continuing the prevailing trend. Initially, weakness in Asian markets weighed on sentiment, but the gradual recovery of select heavyweights not only erased any losses but also propelled the index higher. As a result, Nifty settled around the daily high at 18816. Among sectors, financials, IT and autos posted decent gains, while defensive stocks such as Pharma and FMCG performed modestly. Overall, the broader indices each gained almost half a percent. The market ended positively on June 20th in a highly volatile session when the Nifty was above 18800. At the close, the Sensex was up 159 points to 63327 and the Nifty was up 61 points to 18816 respectively. Nifty has respected the trend line support around 18,660 and has seen a steady recovery. This move shows that the bulls are in control and sentiment would remain positive until it holds 18550. Traders should adjust their positions accordingly, but suggest keeping an eye on the size of positions as there are intermediate fluctuations. For the Bank Nifty index, the bulls held a support level at 43400. Currently, the index is trading in a broad range between 43400 and 44000. A breakout on either side of this range is likely to result in trend moves. As long as support holds, if the 43400 level holds, a buy-on-dip approach is suggested. Once the index breaks above the 44,000 level, there will be strong short coverage to the upside towards the 45,000 level.
STOCKS SUGGESTION TO TRADE ON 21 JUNE 2023
19 Jun
NIFTY OUTLOOK FOR WEEK 19 JUN TO 23 JUN 2023
Nifty formed a long positive candle with a small upper shadow on the daily chart on June 16, 2023 to indicate a breakout to the upside above the 18,800 level and closer to a new high above the 18887 level. Nifty has been making higher highs for the past 12 weeks and forming a bullish candle on the weekly frame. Now it needs to stay above 18775 zones to see an upward move towards 18850 and 19,000 zones while on the downside there is support at 18725 and 18675 zones. The India VIX was down 2.17% from 11.08 to 10.84. Volatility dropped, supporting the bulls at record high index levels. Options data points to a shift of a broader range between the 18550-19000 zones and an immediate range between the 18700-18900 zones. Both Nifty and the hourly chart`s RSI were able to observe a bullish triangle pattern that is able to sustain the strength. The MACD is seeing a bullish crossover which may give the index an additional boost going forward. Nifty traded within striking distance of its lifetime highs, closing comfortably above 18,800, which could push the index towards 19,000 in the coming days. Bank Nifty attempted to reverse the head and shoulders pattern formed on the daily chart on Friday. Once it breaks through 44300 and closes above, this pattern loses meaning. The 43600 puts sold at monthly expiry in June proved strong support for this index. Traders should hold onto bullish spreads and bullish positions for the next week and also look to open bullish short straddle positions in the money with compensation for next week`s expiry.
19 Jun
12450 NET PROFIT BOOKED IN OPTION CALLPUT TODAY ??
ASHOKLEY 170 CALL BUY GIVEN @ 2.3-2.4 ACHIEVED TARGET 3.2-3.3 PROFIT OF 5000
HDFCAMC 1880 PUT BUY GIVEN @39-40 ACHIEVED TARGET 49-50 PROFIT OF 3300
NIFTY 18800 22 JUN PUT BUY GIVEN @ 50 ACHIEVED BOTH THE TARGET 60/75 PROFIT OF 1750
MCX 1580 PUT BUY GIVEN @ 37-38 BOOKED PROFIT NEAR 41.5 PROFIT OF 1800
FINNIFTY 19500 20 JUN PUT BUY GIVEN @ 70 ACHIEVED TARGET BOTH THE 85 PROFIT OF 600
??12450 NET PROFIT BOOKED IN OPTION CALL PUT TODAY??
14 Jun
NIFTY BANKNIFTY OUTLOOK & STOCKS FOR 15 JUNE 2023
The domestic indices rebounded after an initial phase of profit booking, driven by encouraging WPI inflation data and positive global cues, while selling in IT and banking stocks kept a check on gains. The favourable decline in US inflation, driven by lower energy prices, and speculation about a potential pause in the Fed rate hike campaign, brought comfort to global equities. However, the persistence of higher core inflation levels may compel the Fed to maintain its hawkish tone during today’s policy announcement with indication of a prolonged pause. Market ended Wednesday’s session in green. The Nifty 50 rose 39 points to 18755 and Sensex gained 85 points to 63228. Bank Nifty fell 91 points to 43988. Looking at the daily charts, we can observe that the Nifty managed to close in positive territory for the third straight day. It is slowly rising towards the previous swing high of 18778 which, once broken, will lead to another uptrend. The hourly and daily momentum indicators provide different signals that are likely to reconcile once we get a decisive move on either side. Interestingly, the bank ended Nifty in the red today. Overall, the uptrend is intact and we expect it to reach the 18800 level in the near term. In terms of levels, 18750 ?-18700 will act as the crucial support zone, while 18800 18850 is expected to act as the immediate hurdle zone. As for Bank Nifty, the index closed in the red today. Trading ranged tightly around the 20-day moving average (44,000). We expect Bank Nifty to hold this support and continue its uptrend. The short-term target is 44500.
12 Jun
NIFTY OUTLOOK FOR 13 JUN 2023
Benchmark stock market indices ended higher on Monday amid a volatile trading session as investors hope for upbeat May retail inflation data to be released later today. The S&P BSE Sensex closed 99 points higher at 62724, while the NSE Nifty 50 closed 38 points higher at 18601. Broader markets outperformed benchmark indices, with mid-cap and small-cap stocks continuing their strong rally. After today`s flat open, Nifty traded in a very small range of 74 points. Nifty has formed a doji candle on the daily chart, indicating indecisiveness in the markets. Also, we can observe an inside candlestick in the index where the cross of Friday`s high/low will decide the big move of the index. For investors, the market is still buying into downturns with a strict SL of 18550 and when the Nifty closes below said level we can see some more pressure on the downside. The volume profile suggests that the index has strong support in the 18550-18500 area. Regarding the OI data, on the call side, the highest OI was observed at 18650 followed by a strike price of 18750, while on the put side, the highest OI is at a strike price of 18700. On the upside, Bank Nifty has support at 43600-43800 while resistance stands at 44400.
Resistance: 17400, 17500, 17600
Support: 17300, 17200, 17100
10 Jun
HOW TO TRADE IN STOCK MARKET ???
Stock Market For Beginners: A Guide
As an investor or trader, you can experience gains and losses, as well as ups and downs. Therefore, learning how to trade the stock market is important, especially if you are a beginner.
Stock trading usually involves buying and selling stocks on the secondary market on the same day. Therefore, it is necessary to gain an understanding of the primary and secondary markets.
Primary market
In a primary market, companies issue new securities and offer them to the public. The transaction thus takes place between issuers and buyers.
Secondary market
On the secondary market you can buy and sell stocks that are issued on the primary market. The transaction takes place between the seller and the buyer. The exchange or broker acts as an intermediary in the secondary market.
When you buy and sell a stock on the same day, it`s called intraday trading. At the end of the day, the trader posts either a profit or a loss.
Process of stock trading for beginners
1. Open a Demat account
To enter the stock market as a trader or investor, you need to open a demat account or brokerage account. You cannot trade on the exchange without a Demat account. The Demat account works like a bank account where you keep money for trading. The securities you buy are managed electronically in the Demat account.
2. Understand stock quotes
A stock`s price changes based on news, fundamentals, technical analysis, etc. By gaining knowledge of these aspects, you can expand your knowledge of stocks and stock markets. This will help you determine the right price to enter or exit a trade.
3. Bids and asks
A bid price indicates the maximum price you are willing to pay to buy a stock. The ask rate is just the opposite. It represents the minimum price at which the seller is willing to sell the stock. Setting the right bid and ask price is important to ensure a profitable trade.
4. Fundamental and technical knowledge of stock
Study the stock`s fundamental and technical analysis to plan your trading. Fundamental analysis evaluates security by measuring its intrinsic value. Various dynamics are taken into account, including income, expenses, assets and liabilities. Meanwhile, technical analysis evaluates the stock based on the stock`s past price and volume chart to predict its future potential.
5. Learn to stop the loss
Volatility is an implied characteristic of the stock market. So, a beginner needs to understand how to prevent heavy losses. While executing a trade you need to set a stop loss price to minimize the loss. Failure to stop the loss can result in severe damage to your capital.
6. Ask an expert Call/ Whatsapp 9039542248
The stock market is unpredictable. No one can accurately predict a stock price. But expert advice will help beginners make the right trading decision. It will help you make the right choice.
7. Start with safer stocks
A large loss of capital can weaken your confidence in the beginning. A wise choice is to start with the less volatile stocks. This can lead to a slow start. But these stocks are more likely to maintain good performance even in adverse conditions. Investing in the stock market can be difficult. You can take the first step towards trading success by opening a Demat account. Next, work to develop adequate knowledge of the stock market. This will help you to counteract all adversity and overcome stock market volatility.
Conclusion
In summary, investing in the Indian stock market can be a lucrative opportunity for investors with a long-term perspective and a diversified portfolio. Although every investment comes with risk, India`s growing economy and stable business environment make it an attractive destination for investors looking to expand their portfolio. By doing thorough research and seeking advice from financial experts, investors can make informed decisions and reap the potential benefits of investing in the Indian stock market.
08 Jun
Call and Put Options: A Guide to Stock Options Trading
An option contract can be a Call Option or Put Option. A call option comes with a right to buy the underlying asset at a pre-agreed price on a future date, and a put option gives you the right to sell the security at a specified price on a specified future date. Simply put – if the price of the underlying stock is expected to go up in value, then you BUY CALL options. Conversely, if the price is expected to go down, then you BUY PUT options. This way, you can buy or sell the underlying stock at a fixed price even if its price goes up or down.
The options seem slightly confusing to many. Let us elaborate on call option and put option to reduce the complexity as they appear.
Investors should know the following three terms to understand the working of an option:
· Strike price: The price at which the asset will be purchased/sold on future date
· Premium: The price that an option buyer will pay to take position
· Expiration: The expiry date of the option
What are Call and Put Options?
Call Options
Call options are contracts that provide the trader with the right, not the obligation, to purchase the security at a pre-defined price on the expiry date. A buyer of call option speculates that the security prices will rise, therefore, they take position at a lower strike price and make profit when the securities’ price rises.
Put Options
Call options are contracts that provide the trader with the right, not the obligation, to purchase the security at a pre-defined price on the expiry date. A buyer of call option speculates that the security prices will rise, therefore, they take position at a lower strike price and make profit when the securities’ price rises.
Call Option in Share Market
Suppose you purchased a call option for 100 shares of company BHEL at Rs.120 per share (strike price) for Sep. 1 (Expiry Date). You can exercise the right to buy the shares at Rs. 120 regardless of the prevailing stock price on 29 JUNE 2023
In the above case, the trader would expect the stock price of company BHEL to rise, thereby allowing them to buy it at a lower cost than its market price. If the market price of share is lower than the strike price locked by the option buyer, they can choose to not exercise the right. They will only lose the premium they paid for the option.
Another example is buying a call option for Rs.200 premium (premium of Rs. 2 per share for 100 shares), which expires in two months. The strike price is Rs.40 per share, and the stock is expected to go to Rs.50 in two months. If the stock price rises to Rs.50 on the expiry date, you can exercise your right and buy the shares at Rs.40 per unit. The special thing about trading in options is that you are not obligated to exercise the contract, so if the share prices do not stay in your favourable range, you can choose not to exercise the contract and the loss on the trade will only be the premium amount you have paid, i.e. Rs. 200.
Selling/ Writing a Call Option
The key consideration for a call option writer/seller is the declining asset price and the option’s expiration date. It is used to hedge against a possible drop in underlying stock price. The option seller keeps the premium paid by option buyer as profit. Option seller must pay a higher margin compared to option buyer to take position. The ideal time considered by traders to sell a call option is when the underlying asset price is not expected to rise before the expiration. Call options are sold as:
· Covered Call Option – When the seller possesses the underlying asset.
· Naked Call Option – When the seller sells the option without possessing the underlying asset.
Put Option in Share Market
For example, you own 100 shares valued at Rs.100 per share. You analyse that the stock can decline to Rs.90 over the next two months. You invest in a put option with the right to sell those 100 shares at a strike price of Rs.100 on the expiry date, which is two months later. If on the expiry date, the share price falls below Rs.100, you can choose to exercise the option.
Put Option Buying
Buying puts appeals to traders expecting a decline in the underlying asset price. It protects you from losses against a small amount of premium.
You need to choose the strike price first, i.e., the price at which you will sell the asset on the future date. Choose an expiration date.
You can monitor the stock prices to gauge if the option contract is helping you hedge the risks. You can let the option unused if the stock price does not stay in your favourable range. There will be no profit, but your losses will not be more than the option premium.
Put Option selling
Put Option sellers expect a rise in the value of the underlying asset. They have to pay the margin to take position. Also, option seller must settle the daily Mark-to-Market (MTM) basis the change in option prices.
Summarizing Call & Put Options
Thus, the call and put options are the opposite of each other. Where buying a call allows you to buy an underlying security at a fixed price on expiration, when price of underlying is expected to rise. A put option is bought when the asset price is expected to go down and it gives the right to sell the underlying stock at predefined price on expiration.
Despite challenges in global economies, the domestic market posted better-than-expected earnings growth in Q4, as well as FY23 GDP growth of 7.2%, buoying the market throughout the week. However, the market closed today on a slightly negative bias, resulting in banks posting strong profit bookings. Investors became cautious on anticipation of inflationary pressures in the US after the US debt ceiling was raised. US 10-year bond yields edged up; The market looks at the development of US interest rates for more transparency. The benchmark indices Nifty & Sensex ended the weekly F&O phase-out session lower. Towards the end of the session, Bank Nifty fell 400 points to hit a daily low of 43706 and Nifty hit an intraday low of 18464. The Nifty slipped 46 points, to settle at 18487, and the Sensex fell 193 points, to 62428. Among industry indexes, Bank Nifty was down 337 points, to 43790.
Nifty experienced rangebound movement and stayed within a certain range throughout the day. However, there was strong selling pressure at closing. Overall market sentiment is expected to remain negative until the Nifty Index manages to scale above 18475. If the index fails to bounce back above this level, it could potentially lead to a market correction. On the downside, support is expected in the 18425 -18350 area. Conversely, expect resistance at the upper end around 18550-18650.
Resistance: 18500, 18600, 18700
Support: 18450, 18350, 18250
29 May
NIFTY OUTLOOK & BEST OPTION TIPS FOR 30 MAY 2023
The Nifty started the week strongly, rising more than half a percent on May 29 to 18599. It followed positive Asian signals after the preliminary agreement on the US debt ceiling and a new high for the domestic banking index. All sectors, apart from information technology and oil & gas, the index supported the daily high of 18641, also its highest level this calendar year. After opening above 18600, the index ranged between 50 and 60 points. It closed 99 points higher at 18599 and formed a doji candle on the daily chart, indicating indecisiveness between the bulls and bears. However, the mood remains positive. The Nifty is nearing 18650-187750 and possibly 18,887, its December all-time high, though not without some consolidation, experts say. Support on the downside has emerged at 18,400 level. After a long-awaited period, the Nifty bank is now breaking new ground. We expect the Nifty index to follow suit, testing the all-time high of 18,887 and possibly even higher in the near future. The recent sharp price advance that has caused short-term indicators to enter the overbought zone and subdued intraday moves may slow the Nifty`s advance. It would be prudent to use downturns to go long and take profits at higher levels. The resistance around 18400-18200 will now serve as support, while the 18800-18,900 area will serve as immediate resistance. On the options up front, the maximum open call interest was at 18800 strikes, followed by 18700 and 18600 strikes, with sensible ones Call writing on similar strikes in a similar order. On the put side, the maximum open interest was 18400 strikes, followed by 18300 strikes and 18200 strikes. with writing at 18700 strikes, then 18600 strikes. The data shows that 18600-18800 is likely to be the resistance zone and 18500-18300 support zone for the index. Bank Nifty opened a gap to the upside at 44,277 and extended gains to hit a fresh intraday high of 44,483 but then consolidated in a tight 150 point range. It closed 294 points higher to a new closing high of 44,312. The index formed a bullish small-bodied candle with a long upper shadow on the daily scale, suggesting profit-taking at higher levels. Now it needs to continue holding above the 44150 level to make an upward move towards 44,500 and then a new life high of 44,750 while on the downside support is expected at 44150 and then 44,000. India VIX, the volatility indicator, rose 3.34% to 12.30 from 11.90.
Resistance: 17400, 17500, 17600
Support: 17300, 17200, 17100
27 May
Stocks to watch on 29 May 2023
HDFC
DELTACORP
CHAMBLFERT
BHEL
PERSISTENT
VEDL
OFSS
23 May
NIFTY OUTLOOK & OPTION TIPS FOR 24 MAY 2023
Although the close ended largely subdued, market sentiment remained bullish as the Nifty 50 remained above 18300 positions on Tuesday. During the day, Sensex broke near 62,100 and Nifty 50 surpassed 18400 before correcting. Adani stocks remained in focus, with most of them seeing excellent buys. Midcap stocks also outperformed benchmarks. Sensex closed at 61981 up 18 points. The Nifty outperformed its counterpart to finish at 18348, up 33 points. Earlier in the day, Sensex and Nifty 50 hit intraday highs of 62245 and 18419 respectively. In two trading sessions this week, the Nifty 50 saw better movement than Sensex. Bank Nifty recovered from its previous sell-off to close at 43954, up 69 points. Today`s market reached the barrier near 18420 after a gap-up open and corrected quickly in the second half due to intraday profit booking. But the short-term pattern is still bullish. Technically, the index has generated a hammer candlestick reversal configuration on the daily charts, suggesting a high possibility of temporary weakness. Since the short-term market structure is non directional, we believe that level-based trading is the best approach for day traders. Currently, 18350 would serve as a key support level for traders. Above this point, sentiment is likely to remain positive and the index could rally as high as 18475-18525. On the downside selling pressure is likely to increase below 18350. The Nifty could fall below this level by 18300-18200.
Resistance: 18450, 18500, 18550
Support: 18350, 18300, 18250
22 May
NIFTY OUTLOOK & BEST OPTION TIPS FOR 23 MAY 2023
Markets got the week off to a strong start, adding more than half a percent on Friday`s recovery. Meanwhile, a mixed trend on the sector front kept traders busy, with IT, metals and pharmaceuticals stocks rallying while banks and financials lagged slightly. Consequently, Nifty settled at the 18314 level; up 0.61%. Markets are taking solace in rotating buying across sectors on mixed global signals. The recent involvement of IT majors is certainly encouraging, but sustainability would be key to success. Against this background, we reiterate our positive view and propose to continue the stock-specific trading approach. From a technical standpoint, after a trend reversal earlier on Friday, the market continued its positive momentum and formed a bullish candle on the daily chart, which is mostly viewed as a positive signal. The index is believed to have completed a leg of its pullback rally and is currently near a key retracement resistance zone. Overall, the market has shown positive signs with a strong recovery supported by the performance of certain sectors. However, caution should be exercised around the key retracement resistance zone and traders should monitor the quoted levels for possible market movement. Nifty has strong support in the 18250 area and resistance on the upside in the 18350-18425 area.
Resistance: 18350, 18400, 18450
Support: 18250, 18200, 18150
22 May
STOCKS TO WATCH 22-MAY-2023
MOTHERSON
JKCEM
BSOFT
HDFCAMC
M&MFIN
MGL
MUTHOOT
PERSISTENT
POLYCAB
SIEMENS
TATACOMM
16 May
Stocks to Watch on 16 May 2023
BPCL
CANFINHOME
INDIAMART
COLPAL
COROMONDEL
MGL
SBICARD
BALRAMCHIN
BERGEPAINT
ASHOKEYLAND
15 May
STOCK SUGGESTION FOR MAY 15 MAY 2023
NAVINFLOUR
VEDL
HAL
INDHOTEL
GLENMARK
GNFC
DELTACORP
DIOXN
ALKEM
BHARATFORGE
ICICIPRULI
MCX
12 May
Stocks to watch for Today 12 May 2023
HINDALCO,NAVINFLOUR,LICHOUSING,M&M,CUMMINS,DEEPAKNTR, DIVISLAB,BALRAMCHIN,ACC,DELTACORP,GUJGASLTD,HINDCOPPER
11 May
NIFTY OUTLOOK & BEST OPTION TIPS FOR 12 MAY 2023
The Nifty50 has been trading ranged above the previous day`s high, but failed to hold it due to selling pressure in the last hour of trading on May 11, the weekly F&O expiration day, while volatility grew higher by the day. The index opened higher at 18,358 and climbed to 18,390 on the day amid volatility after US inflation numbers eased, but gave up all gains in the last hour of trading to finish down 18 points at 18297. A bearish candlestick pattern has formed on the daily chart as the close was below the open but higher highs and higher lows were forming. The Nifty50 appears to be headed in a positive direction as long as it holds the 18,200 level, which may be immediate support, while 18375-18425 is likely to be a crucial hurdle in the coming sessions. Technically there were no major changes in the chart structure. Nifty continued to move in the higher band during the weekly settlement session. However, there is some reluctance in the upside among the bulls waiting for a positive trigger to continue the uptrend.
Resistance: 18400, 18450, 18500
Support: 18300, 18250, 18200
The securities quoted are for illustration only and are not recommendatory . Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
10 May
STOCK TO WATCH TODAY
MGL
LUPIN
IGL
DRREDDY
BANKBARODA
COLPAL
PNB
UPL
SRF
SUNPHARMA
The securities quoted are for illustration only and are not recommendatory . Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
09 May
NIFTY OUTLOOK & LIVE OPTION TRADING TIPS FOR 10 MAY 2023
The domestic market pared gains as weak global sentiment prevailed. The forthcoming US inflation figures have become the focal point in determining global market developments. US inflation, which is expected to remain unchanged at the March level of 5.0 percent, worries that the Fed will remain tighter for much longer. However, continued support from FIIs protects the domestic market from a sharp correction. Markets moved mostly in line with global equities, which were sluggish to negative. After showing some volatility early in the session, markets remained in negative territory for most of the trading session, ending almost flat as investors resorted to selective profit taking after the sharp rise seen in recent sessions. The sharp appreciation of the rupee could indicate that foreign investors could sell local stocks if the trend continues. The Sensex was down 2.92 points or flat at 61761 and the Nifty closed 5 points lower at 18259.30. On daily charts, the Nifty has formed a small bearish candle, indicating indecisiveness between bulls and bears. As long as the index trades above 18250 the positive sentiment is likely to continue and could pick up to 18300-18400. On the upside, if the index trades below 18250, a quick intraday correction is possible. Below that could fall the index to 18200-18100.
Resistance: 17400, 17500, 17600
Support: 17300, 17200, 17100
The securities quoted are for illustration only and are not recommendatory . Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
28 Apr
NIFTY WEEKLY OUTLOOK & OPTION CALL PUT TIPS FOR 2 MAY TO 5 MAY 2023
For the week, the Sensex and Nifty each gained 2.5%. The market will remain closed on May 1st due to Maharashtra Day.Friday 28th April Cheers for the Market Benchmark indices closed higher on Friday 28th April with Nifty above 18,000. Finally, the Sensex rose 463 points to 61112 and the Nifty rose 150 points to 18065.Markets started the week of April 24, 2023 on a positive note, pointing to banking giant ICICI Bank`s stellar gains over the weekend. This was followed by some restraint on the benchmark NIFTY index; but the banking sector continued to buck the trend. After a brief pause, teller buying intensified, lifting overall market sentiment. With continued buying throughout the remainder of the day, NIFTY ended the session comfortably above 17700, adding nearly seven-tenths of a percent to the Bulls Kitty. Although most Asian bourses were sulking on the morning of April 25, 2023, our markets started the session flat. In the first hour we edged back slightly to retest the 17700 intraday support; but strong buying at lower levels (particularly on the financial gauges) pushed markets higher around the middle of the session. With some ups and downs in the second half, the Nifty ended the session with negligible gains just above the 17750 level. 26 April 2023 We had a quiet start again on mixed global clues. During the first hour, the key indices remained slightly under pressure, leading to a retest of 17700. However, as the day progressed, buyers became active and accelerated momentum in the second half. With some upside towards the end, NIFTY eventually regained 17800 on closing basis by adding a quarter percent to Bulls Kitty. Our markets started the 27 april 2023 session on a flat note as indicated by the SGX Nifty. In the first half of the year we observed a consolidation in the benchmark index; but stock-specific actions continued to attract traders` attention. As we entered the second half the bulls regained some strength which then accelerated towards the end to first send Nifty above the recent swing high of 17863 and eventually 17900 was recaptured on closing basis.
NIFTY BANKNIFTY: STRONG SUPPORT& STRONG RESISTANCE LEVEL
Last week’s lethargic movement was followed by some encouraging signs on Monday this week. As we moved ahead, the Nifty started its gradual march and on the monthly expiry, we managed to conclude the April expiry at two-months highest levels by pocketing nearly 5% series on series. With reference to our previous commentary, it’s a matter of time, we were expecting this hurdle to get surpassed soon. Taking a glance at the daily chart, we can see breakout getting confirmed and now Nifty would probably be eyeing the next cluster of 18200 – 18500 in coming days. The financial space has played a vital role in it and if it continues, we will not be surprised to see Nifty even heading towards 18500 in the first half of the May series.
TECHNICALLY SPEAKING
Benchmark Nifty dived deeper into gains as bulls pushed the index above 18000 after a head and shoulders pattern on the daily time frame. The current rally was well predicted by the authors as they had a decent short PE position at the 17800 strike price. Visible at the top end was a less significant short CE that had built up at the higher strike prices. On the top end, Nifty could continue its upmove until it holds above 18000 on a closing basis. The upper terminal resistance stands at 18200, above which another rally could take place.
The securities quoted are for illustration only and are not recommendatory . Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
24 Apr
NIFTY OUTLOOK & LIVE TRADING TIPS FOR 25 APRIL 2023
After a weak week, the benchmark indices staged a comeback on April 24 after some strong earnings reports from private lenders over the weekend and today lifted general sentiment on Dalal Street. Most market participants were cautious last week after IT Sector earnings fell far short of expectations. Meanwhile, hawkish comment from some Federal Reserve officials didn`t help the bulls either. However, April 24 finally saw some low-level buying in the IT and banking indices. The Sensex was up 401 points at 60056 and the Nifty gained 119 points at 17743. The Nifty opened on a flat note and saw consolidation for the first half of the trading session. Action picked up in the second half and Nifty managed to close above 17700, suggesting it has started the next move higher. On the daily chart, the Nifty has managed to hold the lower end of the rising channel and the 200-day moving average (17625), which is a bullish sign. The daily momentum indicator has a negative crossover and as prices have resumed their upward movement, it is likely that the momentum indicator will offer a positive crossover in the next few trading sessions. Considering the parameters above, we change the short-term outlook to positive and expect the Nifty to target 18000 levels. In terms of levels, 17700-17600 should act as a crucial support zone, while 17850 - 17900 is the immediate hurdle zone for the Nifty.
Resistance: 17400, 17500, 17600
Support: 17300, 17200, 17100
20 Apr
NIFTY OUTLOOK & LIVE TRADING TIPS FOR 20 APRIL 2023
Benchmark indices ended the volatile April 19 session lower. The dark clouds of weak Q4 numbers haunt the domestic market, leading to a third straight decline for the week. IT stocks continued their selling spree ahead of earnings releases from other tech majors. Mild hints from global peers are also causing havoc as market prices anticipate the possibility of another rate hike by the Fed. The biggest risk for the market today is a downgrade in corporate earnings forecasts. Finally, the Sensex was up 159 points at 59567 and the Nifty was up 41 points at 17618. While markets have seen FIIs reduce equity exposure in recent sessions, the recent dismal earnings numbers from select IT companies at the forefront have been a sour spot that has prompted broad-based selling, particularly in IT switches. Currently, the Nifty is trading near the 200-day SMA (Simple Moving Average) level and the texture suggests a strong possibility of a renewed rally from the current levels only after it clears 17650. Above that, the index might retest the 17700 -17800 level. On the downside, the corrective wave is likely to continue and could slide to 17600-17500 as long as the index trades below 17650.
Resistance: 17700, 17800, 17900
Support: 17600, 17500, 17400
18 Apr
NIFTY BANKNIFTY OUTLOOK FOR 19 APRIL 2023 WEDNESDAY
Markets remained in negative territory for most of the trading session, ending a second straight day on the weak as selective profit-taking in banking, energy and FMCG stocks weighed. However, buying of real estate and metals stocks limited the downside. At the close, the Sensex was up 183 points, to 59727 and the Nifty was up 46 points, to 17660. Technically, after the gap-up open, the market saw profit bookings at higher levels which came in at 17650-60100. We think 17850-60500 will now act as a key resistance area for traders. In addition, the market can rise to 17900-18000. On the downside, selling pressure might rise below 17500-59700. Below that, the index may retest the 17400-17300/59500 -59300 levels. The strategy should be to buy between 17600 and 17500. To do this, keep a stop loss at 17450 -59500. For Bank Nifty, 42500 and 42600 would be resistance and support stands at 41500
05 May
NIFTY OUTLOOK & TRADING TIPS FOR 6 MAY 2022
After the May 4 knee-jerk reaction to the Reserve Bank of India`s unscheduled interest rate hike that sent Indian equity markets reeling, the Fed`s announcement of a 50 basis point rate hike prompted a recovery rally in global equities. US markets ended yesterday`s trading higher and Asian markets reacted positively to early morning trading. However, they reduced wins and ended on a flat note. The Indian markets were no different and had a strong open in the morning but volatility crept in during the post-lunch session on profit booking as the markets pared all of their gains and ended up where they started the morning. The Sensex ended flat with a marginal gain of 33 points at 55702, while the Nifty ended the day with a small gain of 5 points at 16,682. Fear of an aggressive rate hike by the US Federal Reserve has been the main driver of global volatility over the past few days. The Fed`s decision to remain less hawkish with a 50 basis point rate hike downplayed investor concerns and helped global markets recover. Sensex had a gap to the upside of 586 points at 56255 points. It continued to rally to create an intraday of 56566 within the first hour of trading. However, sentiment changed and turned the tide, leading to a wild swing of 953 points from the daily high as the market touched a daily low of 55614. The Nifty opened with a gap of 177 points higher at 16854 to hit a daily high of 16945 before falling 294 points to a daily low of 16652. Markets gave back most of their early gains on profit taking in real estate stocks, pharmaceuticals and PSU bank stocks. The initial momentum did not last as investors turned risk-free amid worries of high inflation and the prospect of further rate cuts that would dampen future growth. Another factor is that investors are withdrawing funds from the secondary markets and pouring them into LIC`s ongoing IPO. With all major events behind us, the focus would return to earnings and the upcoming macroeconomic data. We reiterate our bearish bias on Nifty and suggest continuing the sell-on-rise approach. Stocks, on the other hand, present opportunities on both sides, so traders should adjust their positions accordingly. Technically, after a sharp decline, the Nifty has formed an inside bearish candle and is also holding a lower top formation on intraday charts, suggesting further correction from current levels. As long as the index trades below 16800 the corrective wave should continue and below that the Nifty could reach the 16650-16550 levels. On the downside, 16650 and 16500 would act as immediate hurdles. Above 16900, the market could reach the 17000 level.
Resistance: 16800, 16950, 17100
Support: 16650, 16500, 16350
04 May
Indices tumbles ~ 2% after surprise rate hike by RBI
Indian stock markets tanked on Wednesday after the Reserve Bank of India stunned the market with an increase in policy rates, citing inflationary pressures .The Reserve Bank of India`s monetary policy committee, in an off-cycle meeting, raised key lending rate by 40 basis points. Sensex slumped 1,306 points to end at 55,669 after the RBI rate hike, while Nifty tanked 391 points to 16,677Although the rate hike was anticipated, the sudden announcement of a 40 bps increase in repo rate along with a 50 bps increase in CRR in response to the rising inflation spooked markets leading to a heavy selloff. Global markets are also trading cautiously ahead of the upcoming Fed meeting, as an increase of more than 50 bps will extend the current consolidation phase,.
Biggest IPO in Indian Markets: LIC IPO subscription status :LIC IPO is subscribed 62 percent by 16:33 hours IST, on May 4, the first day of bidding .The employee reserved portion has been subscribed 100 percent, while retail investors portion has been subscribed 55 percent. Non Institutional investors have subscribed 25 percent of their portion while qualified institutional buyers bought 33 percent of allotted quota of 3.95 crore shares, till now.
04 May
NIFTY OUTLOOK & TRADING TIPS FOR 4 MAY 2022
Market crashes after RBI`s surprise ~2% rate hike. Nifty 50 ended today at -2.29% and Sensex at -2.29%. The RBI`s monetary policy committee hiked interest rates by 40 basis points, citing persistent inflationary pressures in the economy. With the rapidly changing geopolitical scenario continuing to put pressure on the global supply chain and commodity prices, domestic policy rates were expected to adjust to the changing scenario. Therefore, while not unexpected as the RBI governor had already voiced concerns about rising inflation, the rate hike is expected to have its impact on the housing market amid rising input costs. In a surprise move, the central bank hiked interest rates to keep runaway inflation in check. There was a sense of déjà vu when the RBI announced policy measures outside of its regular calendar of meetings, as it did in May 2020. The increase in the repo rate aims to alleviate high inflationary pressures. While raising the CRR aims to ease loose monetary policy and drain excess liquidity from the system. The governor`s observation of food inflation is a cause for concern. RBI`s assurance that next steps will be calibrated and consideration of economic recovery offer positive direction, along with policy stance kept unchanged at Accommodative.
The industry has benefited greatly from the low interest rates over the past two years. This rate hike will result in higher PMIs for home loans. However, we believe improved homebuyer attitudes, preference for home ownership and strong wage growth will continue to support the housing market. Monetary policy remains accommodative and given the easing of the pandemic and economic growth, we expect consumer demand to remain buoyant in the short-term. Although the rate hike was expected, the sudden announcement of a 40 basis point hike in the repo rate along with a 50 basis point hike in the CRR in response to rising inflation spooked markets and prompted a violent sell-off. Global markets are also trading cautiously ahead of the forthcoming Fed meeting as a rise of more than 50 basis points will prolong the current consolidation phase. Finally, as mentioned, we are watching the 7.35 level on the 10-year benchmark. The level was taken today due to a surprise hike in repo rates by the RBI. The next technical level to watch for is 7.60% when the close is above the 7.35% level. By raising the CRR, the RBI is forcing the banking system to hold additional liquidity in reserves instead of lending it to companies at lower interest rates. Around Rs 80,000 cr will not be available for lending by the banking system from May 21, 2022. Current liquidity in the system is approximately Rs 7 lakh crores and funding costs are likely to increase. We see overall incremental lending rise above tenor after RBI`s move today. Benchmark indices lost over 2% on May 4 after the Reserve Bank of India (RBI) hiked interest rates. At the close the Sensex was down 1306 points to 55669 and the Nifty down 391 points to 16677. I would agree that the central bank`s credibility has been fairly restored. It`s absolutely well timed and now the forward guidance is pretty clear... I expect we`ll be back to pre-pandemic levels of 5.15% by the end of the year. We used to be closer to five percent, so this is definitely a bit higher than we used to think. Investors should be cautious in these markets and use these declines to build new positions in fundamentally sound stocks. Immediate support and resistance for Nifty are at 16,500 and 17,000 respectively.
Resistance: 16800, 16950, 17100
Support: 16650, 16500, 16350
22 Apr
NIFTY WEEKLY PREDICTION & TRADING TIPS FOR 25 APRIL TO 29 APRIL 2022
DAILY CHART FOR NIFTY
After four days of massive hiatus, our markets started the week miserably, factoring in unfavorable global signals. The weakness extended throughout the day with the Nifty slipping further below 17100. Fortunately, some recovery was seen at lower levels and on a modest recovery towards the end the Nifty ended the session down over 1.70%, a bit below the 17200 level. Tuesday`s session started on a positive note as indicated by the SGX Nifty earlier this morning. However, the markets immediately lost their lead in minutes. After that, we saw a long consolidation among the key indices, with individual pockets moving on their own. As we entered the last hour and a half of trading, Nifty surged almost to the daily high; but suddenly the market crashed and before anyone knew it all the intermediate supports were destroyed one by one. Selling was so intense that towards the end we almost tested the 16800 level. Finally, the adjusted close was just above 16950. The mayhem of the last hour on Tuesday was followed by a modest gap on Wednesday, which opened on a spectacular overnight rally in US stocks. Around mid-session, Nifty even proceeded to retake the 17200 mark. However, as we re-entered the last few hours of the session, the market started to get a bit timid. Fortunately, it wasn`t any closer to weakness on Tuesday as Nifty maintained its position well within positive territory to close for percentage gains. Wednesday`s break was followed by a decent gap to the upside on Thursday on positive indications from most global peers. Throughout the day, overall attendance from some of the missing heavyweights such as IT, autos and banking surged. As a result, we saw good sustained bullishness throughout the day to finally close the penultimate weekly decline around 17400, adding another 1.50% to the bull kitty. The market indices snapped out of its two-day winning streak and ended over lower on Friday weighed by market heavyweights Infosys, ICICI Bank and HDFC Bank. The Sensex fell 714 points to settle at 57197 while the Nifty declined 220 points to end at 17171.
NIFTY: A STRONG SUPPORT WILL BE @ 17400; STRONG RESISTANCE LEVEL SEEN @ 17800
Indian equity markets have been volatile over the past seven months, seeing wide swings on both sides amid headwinds from geopolitical tensions, high commodity prices and record inflation. Bulls are looking for corporate earnings reports to take focus off the inflation spurt. Nifty is expected to consolidate between 16500 and 18500 over the next few months.
TECHNICALLY SPEAKING
Markets reversed yesterday`s gain, shedding nearly a percent and a half on weak global leads. The hawkish statement from the US Federal Reserve depressed sentiment around the world, including in our markets. The benchmark attempted to erase some of its losses midway after the gap-down start, but selling pressure in the second half pushed the index to daily lows. Finally, the Nifty Index closed at 17171; down 1.3%. In line with trend, most industry indices closed lower, with metals, banks and healthcare being the top losers. Markets will react to the ICICI Bank figures in early trading on Monday. Additionally, global alerts such as updates on the Russia-Ukraine crisis and China`s COVID situation will also remain on attendees` radars. The drop in the Nifty index has faded hopes of a directional move and we may see further consolidation ahead. Among all, participants should focus more on overnight stock selection and risk management.
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz7RBmme6uO
13 Apr
MONDAY MARKET PREDICTION OF 18 APR 2022
Infosys` share price rose 1 %in early trade on Wednesday (April 13) ahead of the company`s fourth-quarter results to be announced later. The IT major is expected to report a 15-20 %increase in consolidated after-tax profit and 24 %growth in consolidated revenue for the quarter through March. Experts say margins should increase thanks to higher off shoring and favorable currency mixes. In addition, ramping up new stores, adding employees and visibility will remain key drivers going forward. The stock was last trading at Rs 1,748, up 0.35 %on the NSE. The stock is currently trading 10.32 % below its 52-week high of Rs 1,953.70 hit on Jan.
13 Apr
WHAT WILL BE THE NIFTY MOVE IN NEXT WEEK 18 APRIL 2022 ???
Market remained in negative territory for a third day in a volatile session on Wednesday, as inflation surged to a 17-month high in March. The Sensex slipped into the red around midday, closing 260 points lower at 58315, while the Nifty ended at 17465, 64 points lower. points. Markets made a meaningful bottom in March and we have been trying to figure out how to really manage this entire move higher while news flow remains negative. In the very short term we have key support which is close to the 20 day moving average, it is also a 61% retracement of the rally we saw from 17000 sometime in late March to the highs and then we have each other withdrawn. So around 17425-17400 is a critical support level. For Nifty, 17425 will act as very strong support on breaking which we might see 17350 levels and if this level is also breached than next stop will be around 17300 levels. On upper side 17600 will act as very strong resistance, if Nifty goes beyond these levels than next stop will be around 17700, which if broken will take markets to 17800 levels.
RESULT IN THE NEXT WEEK 18-04-2022 TO 22-04-2022
Mindtree Ltd 18-04-2022
ACC & Larsen & Toubro Infotech Ltd 19-04-2022
Tata Elxsi Ltd & ICICI Securities Ltd 20-04-2022
HCL Tech , L&T Technology Services Ltd 21-04-22
L&T Technology 21-04-22
Tata Metaliks Ltd 22-04-2022
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz7QKxGd8Pt
09 Apr
BULLS CONTINUE TO RULE THE STREET IN THE COMING WEEK 11 APRIL TO 13 APRIL 2022
On the daily chart the index has formed a bearish candle with a long upper shadow indicating selling pressure and resistance at higher levels. The index is floating in a higher top and higher bottom formation on the daily chart indicating an ongoing uptrend. The chart pattern suggests that if the Nifty 50 crosses and sustains the 17900 level there would be buying that would lead the index towards the 18000-18100 levels. However if the index falls below the 17700 level there would be selling that would take the index towards 17600-17500. Nifty is trading above its 20-day SMA which indicates a bullish bias in the near-term. Nifty remains in an uptrend in the short-term so buying on the downside remains our preferred strategy. The daily strength indicator RSI is moving up and above its reference line indicating a positive bias.Nifty to remain in uptrend use bull call strategy to make profits on F&O expiry; Nifty Put options OI distribution shows that 17500 has highest OI concentration followed by 17800 & 17600 which may act as support for current expiry
Nifty Derivative Outlook:
The current series of Nifty 50 witnessed a short covering with the price up 1.84% and the OI down 17% on Wednesday with 21.26 lakh shares of the OI settled up from 122.67 lakh 101.41 lakh shares declined. Nifty`s month-to-date rollover today is 15.64% while the Nifty Put Call Ratio a sentiment indicator used by traders to gauge market sentiment and sentiment is currently 0.86 compared to 1 07 of the last week suggesting a flat to negative move .India Vix a market volatility indicator often referred to as a fear gauge is currently trading at 19.02% compared to 20.56% over the last week.
Nifty ATM options implied volatility for the current series is 18.12% as opposed to 19.35% last week indicating low volatility on both sides in the expiry session. Nifty put options OI distribution shows that 17500 has the highest OI concentration followed by 17800 & 17600 which could serve as support for the current expiry and on the call front 18000 followed by 18100 & 17900 experienced significant OI concentration and may act as resistance to the current decline.
On weekly options call writing was observed at 18100 strikes followed by 18000 and 17900 while on the put side noticeable writing activity was observed at 17700 17500 and 17800 strikes. Options data points to an immediate range between 18100 and 17500 levels.
Nifty Strategy
The strategy we are proposing for this weekly expiration on April 13th is a moderately bullish strategy called CALL LADDER which involves buying one lot of NIFTY 17850 Call @ 158 and selling one lot each of 18000 Call @ 95 and one lot includes 18150 call @ 54. The cost of the strategy includes an outflow of Rs 450 which is the maximum loss if NIFTY trades and stays below 17860 at expiry. The maximum profit of Rs 7050 is reached at 18000 while the strategy starts making losses above 18300 hence it is advisable to exit the strategy completely to avoid UNLIMITED losses above 18300. The strategy`s break-even points are 17859 on the upside and 18291 on the downside.
09 Apr
BANKNFITY OUTLOOK & OPTION CALL PUT TIPS FOR 11 APRIL TO 13 APRIL 2022
The Nifty Bank Index closed positive on Friday. Stocks of Bandhan Bank (up 2.53%) AU Small Finance Bank (up 1.98%) Federal Bank (up 1.78%) IndusInd Bank (up 1.34%) and Kotak Mahindra Bank (up 1.02%) ended the day as the top winner in the pack. On the other hand IDFCBANK (down 1.3%) and HDFC Bank (down 0.14%) ended the day as the biggest losers. The Nifty Bank Index closed up 0.52% at 37752.
Bank Nifty Outlook
On the daily chart the index has formed a bearish candle with a long upper shadow indicating selling pressure and resistance at higher levels. The index is floating in a higher top and higher bottom formation on the daily chart indicating a near-term uptrend. The chart pattern suggests that if Bank Nifty breaks above the 37800 level and holds there would be some buying taking the index towards the 38000-38200 range. However if the index falls below the 37500 level there would be selling that would take the index towards 37200-37000. Banknifty is trading above the 20-day SMAs which is signaling a bullish bias in the short to medium term. Bank Nifty remains in an uptrend over the medium and long term so buying on the downside remains our preferred strategy. The daily strength indicator RSI has turned positive and is above its reference line indicating continued strength.
Bank Nifty Derivative Outlook
On the daily chart the index has formed a bearish candle with a long upper shadow indicating selling pressure and resistance at higher levels. The index is floating in a higher top and higher bottom formation on the daily chart indicating a short-term uptrend. The chart pattern suggests that if Bank Nifty breaks through 37800 and holds there would be some buying that would lead the index towards the 38000-38200 range. However if the index falls below the 37500 level there would be selling that would take the index towards 37200-37000. Banknifty is trading above the 20-day SMAs signaling a bullish bias in the short to medium term. Bank Nifty remains in an uptrend in the medium and long term so buying on the downside remains our preferred strategy. The daily strength indicator RSI has turned positive and is above its reference line indicating continued strength.
01 Apr
NIFTY WEEKLY OUTLOOK & TRADING TIPS FOR 4 APRIL TO 8 APRIL 2022
The war between Russia and Ukraine, the movement of crude oil and the RBI monetary policy meetings, as well as the stock results due in April 2022 would be the main factors that will determine the near trend.
WEEKLY RESISTANCE FOR NIFTY: 17737, 17811, 17962
PIVOT POINT: 17586
WEEKLY SUPPORT FOR NIFTY: 17413, 17361, 17288
30 Mar
NIFTY PREDICTION FOR F&O EXPIRY 31 MARCH 2022
The bulls were back in action ahead of the F&O expiry, which helped Sensex close above the crucial 58,000 level. Investors cheered reports that both Russia and Ukraine are holding peace talks, bringing some stability to markets around the world. Indian markets rose for the third day today on positive signals on Russia-Ukraine peace talks. With the lockdown in China, markets are expected to remain volatile in the period ahead. Another important aspect was the drop in crude oil prices, which would help contain rising inflation.
Currently, the market is trading near its key resistance level and has also formed a minor hammer candlestick formation. We think that as long as the Nifty trades above 17409, the breakout structure is likely to continue to 17636-17830. On the downside, the index below 17200 could retest the 17033-16931 level. Technically, Nifty has been steadily rising for the past three trading sessions, moving above the previous swing highs. Additionally, the index has held above the 100-EMA on the daily chart, indicating bullish strength for the day ahead. A momentum indicator RSI (14) is moving above the 60 level and the MACD is showing a positive crossover supporting the uptrend. Currently the index has support at 17113 while resistance lies at 17470. On the upside, Bank Nifty has support at 35106 while resistance lies at 36518.
Resistance: 17273, 17393, 17491
Support: 17045, 16956, 16836
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz7P1JS7Tns
15 Mar
INFLATION DATA ON CARD ; NIFTY OUTLOOK & TIPS FOR 15 MARCH 2022
Markets got off to a buoyant start to the week, gaining over a percent and a half continuing the prevailing recovery. After the flat start, the benchmark gradually rose on healthy buying from banking and IT majors, eventually ending around the daily high. Meanwhile, the broader indices traded mixed, ending with modest gains. Bullish global signals coupled with bargain-hunting among index majors are driving markets higher. For the fifth straight day, the benchmark indices continued the positive momentum as these indices successfully broke through the short-term technical resistance on the charts. Banking and financial stocks outperformed, gaining over 2%, while real estate and metals stocks saw some profit booking.
Markets will initially react to the inflation data in early trading on Tuesday. Updates on prevailing geopolitical tensions and global market developments will also remain in focus. Technically, the Nifty manages to close above the 20-day SMA after a long time. A bullish candle has formed on the daily chart. We believe that as long as Nifty trades above 16800, the uptrend will continue in the near term. For the bulls, the immediate hurdle would be 17000 or the 200-day SMA. On the downside, below 16700, the strong possibility of a quick intraday correction is not ruled out on the Nifty. Below 16700 , Nifty could retest 16650 and 16500. Having passed the critical hurdle at 16800 , Nifty can extend the rebound to a 17,100+ zone. In the event of a dip, 16500 would act as immediate support. Meanwhile, participants should remain focused on sector/stock selection.
Resistance: 16800, 16900, 17000
Support: 16700, 16600, 16500
11 Mar
INFALTION DATA,RISING OIL PRICE WILL DECIDE THE NEXT WEEK MARKET
The share market gained on Friday amid mixed global cues of stable oil prices and surging US inflation, as both Sensex and Nifty were set for their first weekly gain in recent weeks. The Nifty was up 0.30% at 16644 and the Sensex rose 0.36% or 199 points to 55663.
WHAT LIES IN THE NEAR FUTURE?
Market structure suggests a strong likelihood of range bound activity taking place in the near term...so buy on the downside and sell on rallies. Expectations of a drop in oil prices and a majority of government votes in state elections, which offer stability to investments in emerging markets such as India, supported the market. The results of five state council polls were announced on Thursday. The BJP will form governments in four states - Uttar Pradesh, Uttarakhand, Goa and Manipur. Looking ahead, investors will be keeping an eye on the country`s inflation data, which is due to be released on Monday Food prices but nonetheless warned that rising oil prices will push inflation even higher in the coming months.
GLOBAL INFLATION, OIL PRICES
In global markets, oil prices stabilized and were on track for their biggest weekly declines since November after oscillating on fears of escalating bans on Russian oil versus efforts to bolster supply from other major producers to bring to market.
11 Mar
NIFTY OUTLOOK AND TRADING TIPS FOR 14 MARCH TO 18 MARCH, 2022
Market started the week with a huge downside gap well below the psychological level of 16000. The weakness extended in the initial trade which was followed by a modest recovery towards the midst of the session. However this attempt got sold into as we stepped into the latter half to make a fresh seven-month low of 15711.45. Things did not look good at that point but fortunately, we witnessed yet another round of recovery in the last hour of the session which pulled the Nifty towards 15900 to trim some portion of losses. The overnight correction in US bourses indicated a weak opening in our market on Tuesday morning. Market recovered towards Monday’s close in the initial hour which was followed by one more round of selling to sneak below the 15700 mark. However, as we stepped into the penultimate hour, we witnessed a strong buying interest across the board; resulting in a V-shaped recovery not only to surpass morning’s high but also to go past the psychological mark of 16000 on a closing basis. Despite Nifty was indicating a sluggish start, our markets started the Wednesday with a decent upside gap around 16100. Barring small down tick in the initial trades, the Nifty kept marching higher throughout the remaining part of the session. In fact due to accelerated rebound in some of the heavyweights pushed Nifty towards the 16400 mark. Before anyone could realized, Nifty is up more than 700 points since Tuesday’s low. Our markets started the Thursday with a massive bump up beyond 16750 on the back of cheerful mood across the globe. However this seemed overreaction as markets immediately came back to the realistic levels in the initial trade around 16650 in line with what Nifty was indicating. This was followed by a consolidation throughout the first half; but as we stepped into the latter half, the profit booking took place to some extent. Nifty came off sharply to test the 16450 mark in a span of merely half an hour. Fortunately, nerves settled down around it and with the help of a modest recovery at the end, Nifty concluded with weekly expiry tad below 16600 by adding over one and half a percent gains. Benchmark indices ended marginally higher in the highly volatile session on March 11 led by the pharma and oil & gas stocks. At close, the Sensex was up 85 points at 55550, and the Nifty was up 35 points or 0.21% at 16630.
NIFTY: A STRONG SUPPORT WILL BE @ 15900; STRONG RESISTANCE LEVEL SEEN @ 17200
It was certainly an action packed week for our markets and although, market erased significant portion of its morning gains during the day, we must construe this as a normal course of action. Because we already had a sharp recovery of 1000 points from Tuesday’s low in merely two days and hence some sort of profit booking was evident after nearing crucial resistances. In fact, with reference to previous commentary, Nifty precisely faced resistance around the mentioned level of 16800. Going ahead, we expect some consolidation in key indices and lot of adjustment would continue to happen in individual stocks. As far as levels are concerned, 16800 – 17000 remains to be a key hurdle and any sustainable move above this would confirm Tuesday’s low as a bottom (last three day’s sharp up move has already given early indication of it).
TECHNICALLY SPEAKING
Nifty has staged a strong bounce back from structural value level of 15980. This along with momentum reversal confirmation suggests “buy on dips” strategy should work for the near term. We expect March series to trade with a positive bias with initial targets placed at 17080-17345. We remain positive on the broader markets with the NBFC and FMCG space giving good risk-reward opportunities – metals stocks remain in the high volatile zone making it difficult to define risk levels. Continuing with the positive momentum from the last couple of sessions, the Nifty opened with a significant gap on the upside. However, the index failed to build upon the early gains. The level of 16662 acted as a stiff barrier on the upside. Structurally, the index is expected to witness a brief consolidation before taking out this barrier. Hence, buy on dips will be the preferred strategy from short term trading perspective. A minor degree dip towards the key hourly moving averages i.e. 16658-16307 can be taken as a fresh buying opportunity.
11 Mar
NIFTY OUTLOOK & OPTION CALL PUT TIPS OF 11 MARCH 2022
Continuing the positive momentum of the recent session, Nifty opened with a big upward gap. However, the index could not be built on the basis of initial profits. The 16800 level acted as a solid barrier. The Benchmark Index closed at a high price in three consecutive sessions on March 10, supported by buying between sectors. Finally, the Sensex rose 817 points to 55464, and the Nifty rose 249 points to 16594. Market optimism was facilitated by the prospect of favorable results from negotiations between Russia and Ukraine. Another promising development was made by the UAE, a member of OPEC +, as it said it would help inject oil into markets where supply shortages are occurring due to US sanctions on Russian oil. If OPEC + countries agree to increase production, crude oil profits may be limited in the next session. BJP`s strong move in the state elections has been added to the bullish sentiment. Investors should continue to pay attention, as geopolitical impasses remain unpredictable, but may consider buying stock for long-term goals.
03 Mar
NIFTY PREDICTION FOR MARCH 4, 2022
Market closed lower on Thursday, failing to hold earlier gains. Broader domestic markets also ended lower, with the Indian VIX down 3.8%. European stocks fell, US futures slid and oil soared to its highest level since 2008. The Indian market started trading fairly higher today, following firm global market signals after a day of huge sell-offs, but indices soon trimmed opening gains and were modestly higher Markets remained volatile and settled with a decline of over half a percent, continuing the prevailing trend. Firm global markets started an uptrend in early trading, but it didn`t last long, gradually slipping lower throughout the day. Consequently, Nifty closed around the daily low and settled at 16498 down 0.65%. On the sector front, a mixed trend was observed with Energy, IT and Metals enjoying decent traction while Auto, Banking and FMCG traded lackluster.
However, as FIIs are relentless sellers, another correction cannot be ruled out. Investors could start nibbling on quality stocks that have corrected disproportionately. The Nifty50 formed an undecided doji candle on the daily chart on Wednesday. the 50-pack index to find support in the 16450-16400 range while seeing resistance near the 16650 level. If the index sustains above the 16475 level, the sideways consolidation should continue with a positive bias.
Resistance: 16800, 16900, 17000
Support: 16700, 16600, 16500
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz7MTRG20g4
03 Mar
NIFTY PREDICTION FOR WEDNESDAY MARCH 3, 2022
Markets traded volatile, losing over a percent on weak global signals. News of a deepening war between Russia and Ukraine prompted a weak start, made worse by a sharp rise in crude oil prices. However, a rebound in the last hour of trading pared some losses. Consequently, the Nifty index settled around 16605; down 1.12%. Most sector indices closed lower in line with the benchmark while broader indices traded mixed. Equity markets continued their weakness as various developments on the Russia-Ukraine front caused crude oil and other commodity prices to spiral. Indian markets gapped lower in line with global peers as various sanctions imposed on Russia threatened to cut off supplies of crude oil and various other commodities. Towards the end, however, the market rallied on reports of a second round of peace talks between Russia and Ukraine, scheduled for Wednesday evening, raising hopes of some relief. Volatility is likely to remain high in the near term given the escalating conflict between Russia and Ukraine, upcoming state election results and the Federal Reserve Board meeting. Additionally, the market would be keeping an eye on developments in the Russia-Ukraine talks. If the Russia-Ukraine conflict is prolonged and leads to increased energy prices for a longer period of time, this can have an impact on margins and earnings. We expect Nifty`s weakness to continue until it is below its crucial 200 DEMA of ~16750. On the upside, however, last week`s low of 16200 could serve as strong support. Traders need to be wary of sharp moves either way, while investors can take advantage of the current decline to gradually add quality blue chip companies to their portfolios. Markets have gradually declined in the face of unpredictable intraday swings, but the dip is more severe across the board. We think volatility will continue and the proposed weekly schedule would add further volatility on Thursday. Among the sectors, metals and energy stocks look solid while others are watching mixed trends. Participants have no choice but to adjust their positions with the trend and prefer a hedged approach. Technically, market texture has turned weak with a sell-on-rise structure after Nifty slipped below its 200-DMA. However, Nifty is attempting to gain a foothold in the 16450-16250 zone but bulls confidence will only be back above the 17000 level, if Nifty slips below 16200 then 15900 will be the next key support level. Bank Nifty is trading near a key psychological support level of 35000 and if it manages to hold this level we can expect brief coverage towards the 36300-36700 zone while it slides below the 35000 level then becomes 34500 be the next key support level. Short term traders should remain cautious given the many uncertainties as to where 16300 should be their trading stop loss for long positions. Investors should focus on sectors such as capital goods, infrastructure, real estate, banks, etc. that are facing the domestic economy.
Resistance: 16600, 16700, 16800
Support: 16500, 16400, 16300
28 Feb
Market Outlook: 5 Reasons Why the March F&O Series Could Keep Investors Busy
The February series was one of the most volatile series since April 2021 expired, NSE data shows, with an average daily fluctuation for the Nifty index is up to 1.45% (average difference between daily high and low). Last year the average daily swing was 1.55% in the April series and 1.77% in the March series before that. The average trailing-12-month F&O maturity average was 1.19%, with the July 2021 series being the least volatile with a daily average variation of 0.77%. The Nifty is down about 3.5% in the February F&O series. The March series to also be choppy given the numerous headwinds markets are facing. At a fundamental level, foreign portfolio investors (FPIs) remain extremely uncomfortable with India`s valuation premium, analysts said, and have sold nearly $11 billion worth of shares over the past six months. The Indian stock market could remain unsettled in the coming weeks and offer good entry points in the event of major corrections. We recommend investors to focus on domestic cyclical companies such as banks, cement and staffing companies barring reopening of trades including multiplexes. The biggest risk may come from an oil shock for Indian equities as the reopening of the global economy could boost demand.
Here are the top five events that could swing markets either way in March:
Russia-Ukraine crisis: The ongoing Russia-Ukraine crisis will keep the markets in suspense. Markets would closely monitor the resulting sanctions affecting deals with Russia and any spillover effects to neighboring European countries. On the positive side, a peace deal could send global equities soaring. Stock markets always overreact to initial events and eventually adjust to the fundamental consequences of events. Global equities, including Indian markets, could fall another 2% to 3% from current levels and would thereafter begin to adjust for the perceived potential fallout. After a few weeks, the war would either stop or continue longer as a proxy war. Global equities would adjust to the eventual fallout within two to three weeks.
Fed Meeting Outcome: The Fed is expected to meet on March 15-16 to review interest rates. With inflation at a four-decade high, the Fed appears poised to hike rates at the policy meeting. According to experts, markets seem to have priced in a 25 basis point (bp) rate hike so far, any mismatch in expectations could lead to a knee-jerk reaction from the markets.
Crude Oil Prices: Brent Crude crossed the $100 mark in trading on Thursday after Russia ordered troops to invade eastern Ukraine. As the global economy battles inflation, rising oil prices can further fuel inflation, in turn disrupting financial math. If prices remain high for a long time, it will also impact corporate earnings growth in some sectors in the coming quarters.
Assembly Polls: Results of state elections in five states including Uttar Pradesh, Punjab to be announced on March 10. The BJP is the ruling government in Uttar Pradesh, Uttarakhand and Goa. While there may not be a direct correlation between the elections and the markets, any positive verdict for the BJP could boost sentiment in non-ruling states like Punjab and Manipur, while any negative outcome in the currently governed states could dampen sentiment.
Portfolio rebalancing: at the end of the financial year: FIIs have been net sellers in recent months on concerns that the interest rate cycle in the US could change. Given the magnitude of the selling, a portfolio rebalancing at the end of the year could impact select index heavyweights and therefore the index. On the other hand, while DIIs and retail investors have mostly been net buyers, they may want to book profits towards the end of the fiscal year.
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz7MAUEjXcG
25 Feb
NHPC, INFOSYS & WIPRO ARE TODAY`S HEADLINES
Measures are seen on the shares of public companies of listed companies of the stock exchange or the decisions taken by the government. Some companies post their decisions after market hours and some companies post their decisions during market hours. Sometimes such information about companies is filtered from other sources as well, affecting their shares favorably or unfavorably. With this in mind, we provide investors with daily information in the form of Buzzing Stocks about those stocks or companies that for some reason will be in the headlines or focus of today`s market today.
Wipro-The company will increase the number of employees in Brazil. The company will hire more than 500 new professionals in Brazil in the next fiscal year to offer cloud solutions to its customers. The stock has gained 27 % over the past year. But the last month has seen a 6 % drop.
Infosys- The company has established a Metaverse foundry. The second largest IT company created Metaverse Foundry to make their customers, jobs, products and operations easier and faster. Infosys Metaverse Foundry is an integral part of the company`s Living Labs. It drives the digital innovation agenda for businesses to meet emerging priorities and market trends. The stock has returned 32% over the past year.
NHPC- Facility agreement signed with HDFC Bank. The Company entered into a loan agreement with HDFC Bank to secure the return on equity of the 540 MW Chamera-I power plant for a period of 10 years. The stock has shown volatility in the recent past. It`s down 9 percent over the past week but has returned 15 % over the past year.
25 Feb
RUSSIA-UKRAINE WAR: 5 REASONS INDIAN INVESTORS SHOULDN`T PANIC
Russia has launched an attack by armed forces on Ukraine and the event has sent shockwaves around the world. Indian markets were not immune to this and saw a massive sell-off on Thursday ahead of the F&O expiry. However we advised investors not to panic and stay invested in quality stocks given the ongoing uncertainty about Russia and Ukraine. The Sensex plunged over 2000 points in morning trade after Russian President Vladimir Putin announced a military operation in eastern Ukraine. Meanwhile, oil prices rose, surpassing $100 a barrel for the first time since 2014. Market participants were also concerned as India Ratings revised down its GDP growth forecast for 2021-22 to 8.6% from the previously forecast 9.2%. There was also some pessimism as foreign institutional investors (FII) remained net sellers of domestic stocks on Wednesday.
Should You Panic or Stay Invested?
According to us this is a time when investor’s patience and discipline will be tested. Markets are choppy and likely to remain so for some time, but that shouldn`t deter a serious investor.
Investors should not panic and continue to stay long in India.
1) Balance sheets stronger than ever: India`s corporate health is at its strongest in a long time - deleveraging has been seen across sectors and cash reserves have skyrocketed. As a result, corporate trust is high.
2) Promoters are optimistic about business potential: this is reflected in promoters` increasing participation in Nifty50 over time, rising from 32% to 45% over the past decade. Interestingly, post-Covid promoters have increased their share by around 3%.
23 Feb
DIFFERENCE BETWEEN CALL AND PUT OPTION
An Options are of two types one is call option and other is put option, let’s look at the differences between call and put option to get a better idea about both of them –
1. A call option is one which allows the buyer of the option to buy an agreed quantity of stock, while put option is one which allows the buyer of the option to sell agreed quantity of stock
2. A person who buys call option is bullish on the stock while the seller of call option is bearish on the stock....
3. Call option buyers benefits when the price of stock rises while the put option buyers benefits when the price of stock falls.
4. A call option buyer has the right to buy the stock even if the current price of stock is more than agreed price between call option buyer and call option writer, while a put option buyer can sell the stock even if the current price of stock is less than agreed price between put option buyer and put option writer.
However under both call and put option the buyer has to pay a premium to the seller of the option in order to have the benefits of options.
22 Feb
NIFTY OUTLOOK & TRADING FOR 22 FEB 2022
Markets remained volatile in continuation of the trend and lost almost half a percent. After a weak start, recovery in select banking, IT and auto majors gradually pulled the index higher, but the resurgence of selling pressures in the last few hours once again erased all gains. Finally, the Nifty index closed 0.3% lower to close at 17231. The concerns and pessimism of the last three trading sessions carried over into today`s trading and Nifty traded as shaky and choppy. Indeed, the benchmark Nifty seems to be having a hard time staging a meaningful rebound. Blame it on tensions between Russia and Ukraine, and the Fed`s hawkishness still exudes negative sentiment. Markets are in wait-and-watch mode in line with global peers, closely monitoring the Russia-Ukraine crisis for clues. Meanwhile, the index`s volatile swings combined with the selling in broader markets are making life difficult for traders. We therefore recommend limiting positions and keeping existing ones hedged until markets stabilise. Market closed lower for the fourth straight day on February 21 amid volatility from the Ukraine crisis. At the close, the Sensex was up 149 points to 57683 and the Nifty was up 69 points to 17206.
Technically, Nifty’s still paints a bearish picture on the long-term charts; Downside risk seen at 16400 level. From a chart technical perspective, the technical landscape will only improve significantly above the Nifty 17800 level. For Tuesday trading until the 17425 Nifty’s level is resistance, volatility will be the hallmark and the persistent bulls should strictly not take intraday strength as the light at the end of the tunnel. Expect downfall under the Nifty 17050. Technically, after the morning fall, Nifty took the support at 17050 and bounced back sharply, but once again it failed to close above the 20-day SMA, which is heavily negative. A long leg doji formation has formed on the daily charts, the pattern of which indicates bulls and bears indecisiveness. We believe 17225-17275 would be the immediate resistance level on the Nifty. For the bulls above, the index could go as high as 17350. On the upside, trading below 17150 could amplify
17 Feb
NIFTY LEVELS PREDICTION FOR TOMORROW 18 FEB 2022
After a volatile session, today`s market ended marginally lower. The benchmark tried to inch higher after the initial decline, but profit taking in the final hours pared all the gains. In the end, the Nifty ended the session down 0.2% to 17322 levels. Of the sectors, most ended in the red with PSU banks, metals and media being the top losers. The broader nifty ended mixed with midcaps under pressure, while smallcaps ended 0.9% higher. Markets are currently dancing to the tunes of the global economy and we do not expect this to change anytime soon. The minutes of the US Fed meeting and tensions over the Ukraine-Russia crisis will remain relevant in the near term. Besides, the scheduled weekly expiry would further add to the choppiness. We reiterate our cautious stance and suggest waiting for further clarity.
SUPPORT:17174,17086,16867
RESISTANCE: 17393,17524,17743
17 Feb
NIFTY OUTLOOK & TRADING FOR 18 FEB 2022
Benchmark indices ended lower in another volatile session on February 17th with Nifty holding above the 17300 level. The Sensex ended up up 104 points at 57892 and the Nifty up 17 points at 17304. ICICI Bank, Axis Bank, UltraTech Cement, IndusInd Bank and UPL were the biggest Nifty losers, while Tata Consumer Products, ONGC, HDFC, Reliance Industries and HDFC Life were among the winners. At the sector level, the Bank Index slipped 1 %, while the Power Index rose nearly 2 %. BSE midcap and smallcap indices ended lower.
15 Feb
NIFTY OUTLOOK & TRADING FOR 15 FEB 2022
On 14 February 2022 we witnessed bloodbath in the Indian markets with the broader index falling more than 3%. The sell-off was mainly due to tensions between Russia and Ukraine. Almost all major indices around the world were red. Panic selling in global markets took its toll on domestic benchmark indices as investors worried about geopolitical tensions and rising crude oil prices. With growing concern over the prospect of a likely US interest rate hike, overseas funds exited Indian equities at a rapid pace, which also caused Nifty to slip below the psychological 17k mark. The Indian market fell sharply amid geopolitical tensions. These geopolitical tensions are causing crude oil prices and the dollar index to rise sharply, which is another negative trigger for emerging markets like India. We are seeing continued selling of FIIs while DIIs flows could also drop ahead of the big LIC IPO. Inflation and the environment of rising interest rates in the US continue to worry the market and these geopolitical tensions are creating a double whammy for global markets. At close, the Sensex was down 1747 points at 56405, and the Nifty was down 532 points at 16842.
12 Feb
NIFTY OUTLOOK & TRADING FOR 14 FEB TO 18 FEB 2022
Our domestic market started the week on a soft note amid mixed Asian bourses and the sell-off deepened with no sign of a recovery in the benchmark index. A strong sell-off among market participants also dampened sentiment. Finally, Nifty ended the session on the downside, losing about 1.73% for the third straight session to settle at the 17214 level. On Tuesday, the Indian stock market saw a strong whiplash action, with a V-shaped recovery paring the benchmark index`s initial losses and putting an end to the selling frenzy. Although Nifty ended the day subdued with a sheer 0.15% gain at 17239, indecisiveness was felt among market participants as heightened volatility mounted and the index hovered near its key support zone. The Indian stock market started with a gap up on Wednesday and remained range bound throughout the day. The benchmark index Nifty50 saw follow-up buying on a strong finish to end the day higher at 17463, gaining 1.14%. The broad-based buying has spread some bullish sentiment across the stock markets. On Thursday, the domestic market rose after the RBI`s bi-monthly monetary policy announcement, which met street expectations and maintained the status quo. Strong bullish sentiment spread across sectors, propelling the benchmark index Nifty50 higher to end the day on a firm note. The index is up almost a percent and closed a little above the 17600 mark. Sensex and Nifty were weak in trading on Friday, each falling over 1% on weak global cues. The higher-than-expected US inflation data unsettled investors amid fears of an aggressive rate hike by the US Federal Reserve. US inflation rose 7.5%, a four-decade high, prompting hawkish comments from a Fed official. In Asia, stocks in Shanghai and Japan rose while South Korea, Hong Kong and Australia fell. Sensex fell 773 points to close at 58152; Nifty lost 260 points to finish at 17345. IndusInd Bank, Tata Steel and NTPC were the only top performers while TechM was the top loser.
NIFTY: A STRONG SUPPORT WILL BE @ 17000; STRONG RESISTANCE LEVEL SEEN @ 17800
The benchmark index slipped below the budget day`s low ahead of the RBI monetary policy outcome this week, suggesting a sign of caution in the market. Selective blue chips saw a sharp correction, with the bears shrugging off all technical supports. In terms of levels, the 17000 level is the key support for the benchmark, followed by the 16800 swing low, while a break below it could cause major concerns from investors. On the upside, the 50 percent Fibonacci is expected to act as an immediate resistance zone around 17600, followed by 17800 in the near future.
TECHNICALLY SPEAKING
Nifty found resistance around 17635 and slid lower towards the gap in the daily timeframe. A red-body candlestick is visible on the daily timeframe. Once again, the index slipped below the 50 EMA. The trend looks sideways to negative in the short term. On the lower end, support is visible at 17200-17000. On the other hand, Nifty needs to break above 17650 to change the current downtrend.
09 Feb
NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 10 FEB 2022
Strong indications in global markets pushed local benchmarks higher as investors bought struggling stocks. Buying was seen in bank, home and auto stocks on hopes that interest rates could remain unchanged in this week`s credit policy. The market opened on a gap up note and showed strength throughout the session, closing the session at the 17463 level for a gain of 197 points. While Bank Nifty ended the session at 38610 for a gain of 581 points. Nifty recovered today ahead of tomorrow`s weekly expiry. Looking at the charts, the quality of the candle suggests that the market may not expect anything negative ahead of the RBI credit policy. Nifty saw a long green candle to close on the day`s high and this candle follows the previous day`s bullish hammer. Nifty made a higher low yesterday than the low of the previous January 25, 2022 low. It stands to reason that Nifty should rally above the recent high at 18055 to complete the AB=CD pattern.
The Nifty had tested key short-term supports on February 8th where fresh buying interest was seen. The index had taken support near the 78.6% retracement of the recent rise i.e. 17040 and near the bottom of a triangular pattern found near 17050. The index then started to recover and the recovery continued on February 9th. On the way up, the Nifty has breached its key hourly moving averages, which are close to 17350-17450. This will now act as a near-term support zone and as long as the index trades above this zone it can continue its journey on the recovery path. On the higher side, the index may test 17850 in the short term. Nifty offers a good risk/reward trade-off at current levels. It moves in a symmetrical triangle pattern. In a contracting situation, trend-following volatility indicators do not work and could even be counterproductive. Nifty should rally to 17650-17750 and once that zone is breached there should be further upside to 18050-18100. Currently the index has support at 17250 while resistance is at 17650. On the other hand, Bank Nifty has support at 38500 levels while resistance at 39500 levels.
07 Feb
How to Pick a Stock For Option Trading?
The six steps follow a logical thought process that makes it easier to pick a specific option for trading. Let`s breakdown what each of these steps involves.
1. Option Objective
The starting point when making any investment is your investment objective, and options trading is no different. What objective do you want to achieve with your option trade? Is it to speculate on a bullish or bearish view of the underlying asset? Or is it to hedge potential downside risk on a stock in which you have a significant position?
Are you putting on the trade to earn income from selling option premium? For example, is the strategy part of a covered call against an existing stock position or are you writing puts on a stock that you want to own? Using options to generate income is a vastly different approach compared to buying options to speculate or to hedge.
Your first step is to formulate what the objective of the trade is, because it forms the foundation for the subsequent steps.
2. Risk/Reward
The next step is to determine your risk-reward payoff, which should be dependent on your risk tolerance or appetite for risk. If you are a conservative investor or trader, then aggressive strategies such as writing puts or buying a large amount of deep out of the money (OTM) options may not be suited to you. Every option strategy has a well-defined risk and reward profile, so make sure you understand it thoroughly.
3. Check the Volatility
Implied volatility is one of the most important determinants of an option’s price, so get a good read on the level of implied volatility for the options you are considering. Compare the level of implied volatility with the stock’s historical volatility and the level of volatility in the broad market, since this will be a key factor in identifying your option trade/strategy.
Implied volatility lets you know whether other traders are expecting the stock to move a lot or not. High implied volatility will push up premiums, making writing an option more attractive, assuming the trader thinks volatility will not keep increasing (which could increase the chance of the option being exercised). Low implied volatility means cheaper option premiums, which is good for buying options if a trader expects the underlying stock will move enough to increase the value of the options.
4. Identify Events
Events can be classified into two broad categories: market-wide and stock-specific. Market-wide events are those that impact the broad markets, such as Federal Reserve announcements and economic data releases. Stock-specific events are things like earnings reports, product launches, and spinoffs.
An event can have a significant effect on implied volatility before its actual occurrence, and the event can have a huge impact on the stock price when it does occur. So do you want to capitalize on the surge in volatility before a key event, or would you rather wait on the sidelines until things settle down?
Identifying events that may impact the underlying asset can help you decide on the appropriate time frame and expiration date for your option trade.
5. Devise a Strategy
Based on the analysis conducted in the previous steps, you now know your investment objective, desired risk-reward payoff, level of implied and historical volatility, and key events that may affect the underlying asset. Going through the four steps makes it much easier to identify a specific option strategy.
For example, let’s say you are a conservative investor with a sizable stock portfolio and want to earn premium income before companies commence reporting their quarterly earnings in a couple of months. You may, therefore, opt for a covered call writing strategy, which involves writing calls on some or all of the stocks in your portfolio.
As another example, if you are an aggressive investor who likes long shots and is convinced that the markets are headed for a big decline within six months, you may decide to buy puts on major stock indices.
6. Establish Parameters
Now that you have identified the specific option strategy you want to implement, all that remains is to establish option parameters like expiration dates, strike prices, and option deltas. For example, you may want to buy a call with the longest possible expiration but at the lowest possible cost, in which case an out-of-the-money call may be suitable. Conversely, if you desire a call with a high delta, you may prefer an in-the-money option.
07 Feb
NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 8 FEB 2022
Domestic markets are volatile ahead of the state election, seeing a sharp decline led by FII selling and weak global signals. Indian markets opened in red after mixed Asian market signals as investors continued to monitor the situation surrounding the Ukraine crisis and digest US jobs data and central bank moves in the region. During the afternoon session, markets added losses to continue weak trading amid continued foreign fund outflows. Foreign portfolio investors (FPIs) have withdrawn up to Rs 6,834 crore from Indian markets in the first four trading sessions in February. US stock markets were under pressure as strong US jobs data raised fears of a stronger-than-expected Fed rate hike, pushing bond yields higher. The market ended February 7th lower for the third straight day as auto, FMCG, IT, banking, healthcare, real estate and capital goods stocks sold off. At the close, the Sensex was down 1023 points to 57621 and the Nifty down 302 points to 17213.
Market volatility is likely to continue given the high probability of a rate hike by the RBI given domestic inflation and tightening monetary policy by global central banks. The forthcoming MPC will meet in the shadow of the Union Budget for FY23, which has rightly maintained its focus on growth but at the cost of heavy market borrowing. At the upcoming meeting, the MPC is likely to acknowledge the inevitability of monetary policy normalization and the challenges we face as global central banks accelerate their fight against inflation. However, the recent sharp rise in bond yields may have already tightened local financial conditions a little too quickly for the RBI`s comfort. We therefore expect MPC to start a gradual tightening cycle and turn its focus a bit more on inflation as Brent crude is near $100 a barrel. First, we expect the MPC to normalize the repo rate reverse repo corridor (to 25 basis points) over the next two sessions, starting with a 20 basis point hike in the reverse repo rate in February. Subsequently, the MPC could change its accommodative monetary policy stance to neutral and eventually start a moderate rate hike cycle. With monetary policy normalization underway, RBI`s support for bond markets is likely to remain limited going forward, even if headline inflation stays within the RBI`s target range. Difficult as it may be, RBI must juggle non-disruptively between its goals of normalizing policy and managing the government`s lending program in FY23.
04 Feb
RESULTS EXPECTATION HIGH ?? FOR SBI & WEAK ??FOR BOB
Tomorrow,SBI & Bank of Baroda will announce their quarterly results.SBI is expected to show continued strength in its operating performance, supported by modest business growth, while Bank of Baroda is expected to have a weak Q3 earnings report.
In SBI`s case, it can benefit from modest business growth and a gradual reduction in provisions, while BoB may see a weak Q3 earnings show. On the other hand, an increase in bond yields could affect treasury performance. The stock of SBI and BoB has outperformed the benchmark Sensex, so far this year. The former has risen about 17 percent YTD, while the latter has risen by 34%.
SBI-We expect 14% operating profit growth at Rs 19796.1 crore, driven by lower operating expenses, and 9% NII growth at Rs 31,505 crore, supported by subdued loan growth of 7%. Treasury income is likely to be lower and wage costs may not be one-offs during this quarter. Net profit is predicted at Rs 8,032.3 crores. We expect slippages at 2 per cent of loans and lower sequential provisions at Rs 2,429.1 crores.
04 Feb
NIFTY OUTLOOK & VIEW ON SBIN RESULT & RBI MONETARY POLICY 7 FEB TO 11 FEB 2022
The global markets feel good and started the new trading week with happy tones. After the gap opened, the market gradually rose to test the 17400 level in the middle of the session. Since then there has been little activity in the benchmark index. This is because range bound moves were seen, suggesting some gains towards the end. Finally, Nifty ended a riveting session above 17300, adding nearly 1.5% to the Bulls kitty. Similar to the previous session, our markets started with a decent move higher on Tuesday on the back of favorable global cues. That early morning lead extended nearly to 17600 before the budget speech. However, once it started, the market went into a consolidation mode and waited for a trigger from this event. The moment it ended we had a little bout of sharp profit booking around mid-session. In the blink of an eye the market not only erased all gains but also slid into negative territory to test the key 17250 support. Fortunately, this turned out to be an overreaction by cautious traders and hence the powerful bulls jumped at the opportunity to take the market once again to the daily high. The Indian stock market had an upbeat trading day on Wednesday, taking inspiration from buoyant global markets. After the budget day, strong sentiment was spread by the participants who helped the indices surge higher and ended Wednesday with a strong bullish candlestick pattern. Broad-based buying impacted all sectors and the advance-decline ratio has further eliminated optimism among market participants, with 40 on the long and 9 on the lagging side of the NIFTY50. The Indian stock market ended its winning streak for three consecutive days and saw decent profit booking at higher levels on Thursday. The mixed global cues played a major role in the session correction, which intensified in the second half as the index tested the intraday low of 17511 until the last minute and ended the day down 1.24 % at the level of 17560 finished. Benchmark indices ended negative in the volatile Feb. 4 session as selling was seen in PSU bank, auto and real estate stocks. At the close, the Sensex was down 143 points or 0.24% to 58644 and the Nifty down 44 points or 0.25% to 17516. Approximately 1554 stocks are up, 1704 stocks are down, and 87 stocks are flat.
03 Feb
STOCK MARKET VIEW AFTER BUDGET 2022
The generally budget looks great from the market`s viewpoint as the budget is centered on development be that as it may there`s some instability within the market which is normal for any budget day. In fact, 17600-17800 may be a supply area for the showcase and on the off chance that Nifty oversees to cross this zone at that point ready to expect a move towards a new all-time tall within the coming days something else a few pullback can be anticipated towards 17000 level. The budget may well be a 24hr occasion at that point the showcase will center on profit development and worldwide cues. Nifty witnessed wild swing with the bands of 17200 and 17600. On the daily chart a green candle with large lower wick is formed suggesting buying at the lower levels. The band 17200 and 17600 are likely to remain active during the near term. Any decisive breakout on either side can induce directional move.
03 Feb
NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 3 FEB 2022
Markets proceeded to exchange buoyant and finished with picks up of over 1%. Positive worldwide signals combined with budget-led buoyancy activated a gap-up begin and the benchmark slowly crept higher as the day advanced. Consequently, Nifty settled around the day’s high to shut at 17780 levels. Among the divisions, managing an account and financials were within the center from the starting, closely taken after by media, healthcare and IT. In line with the move, the advertise breadth was too slanted unequivocally on the progressing side.
Markets are as of now riding high on the back of positive thinking post the Union Budget. Other than, worldwide recuperation and great profit are moreover including to the inspiration. In the midst of all, one shouldn’t disregard that the Nifty record is still in a exchanging run and 17900 -18200 would proceed to act as a jump. We feel members ought to center on recognizing the sectors/themes which are exchanging in adjust with the record. Among the divisions, keeping money and financials have the potential to eclipse others.
Resistance: 17350, 17425, 17575
Support: 17200, 17000, 16800
27 Jan
NIFTY OUTLOOK FOR 28 JAN 2022
After a day of hiatus, benchmark indices were back in the red on Thursday as the US Federal Reserve spooked markets by announcing a timeline to raise interest rates. But some buying in the afternoon gave hope to bulls. Value stocks made a comeback with the PSU Bank index rallying over 5%. The market was well supported by auto stocks to stage a smart recovery. At the same time, IT and pharma stocks witnessed profit-taking. The Sensex declined 581 points to close at 57276. Consequently, Nifty closed at 17110; down by 1%. Excessive volatility on the global front is keeping our markets also on the edge. With the US FOMC meet behind us, we expect some stability now. However, the prevailing earnings season and upcoming Union budget 1 February 2022 would keep the participants enthusiastic. The recent buoyancy in the banking space is certainly encouraging but the other sectors should also support for any meaningful recovery. We feel it’s prudent to stay light and let the markets stabilise. Consequently, the Nifty held on to the psychological mark of 17000 on a closing basis for yet another session. The overall structure shows that the index is preparing for a short term bounce towards 17300-17500. On the flip side, 16900 will continue to act as a near term support on a closing basis with major support at 16800.
Resistance: 17350, 17425, 17575
Support: 17200, 17000, 16800
25 Jan
WHY TO BE CAUTIOUS WHILE TRADING IN BUDGET 1 FEB 2022
nvestors should trade with caution till the Union Budget 2022-23 is presented on February 1, 2022. The word of caution comes after the strong market rally finally came to an end last Friday when both benchmark indices falling sharply since last week. Nifty index is trading below 17100 mark, While the sensex is near 58000 mark. Market is currently witnessing higher levels of nervousness due to the upcoming budget. Not just the Union Budget 2022 but markets are also expected to remain volatile due to monthly derivative expiry as well i.e. on 27 January 2022. The volatility has spiked further due to the ongoing earnings seasons. While there are many external factors that will also weigh the market in coming session, the nervousness ahead of the budget could lead to some sudden selloffs, leading to further correction. In such a scenario, traders and investors should remain cautious over the next few days, especially on the day when Union Budget 2022-2023 is presented. Markets are riding on optimism at the moment and much of it is due to the high expectations from the upcoming budget. Generally, the market does not give any major trend reversal ahead of the mega event; but this time, it looks like we are going to witness yet another unprecedented behavior of the market. Next couple of days would be quite crucial and would be interesting to see whether markets correct further or it shows some resilience to protect it is crucial supports 17000. Going by the developments witnessed in the last five trading sessions, a number of analysts indicate that the market may correct further in the near-term. Technically, Nifty has started to form lower top, lower bottom and is witnessing profit booking declines from five sessions. It also formed a Bearish candle on the daily scale. Now, till it remains below 17100, weakness could be seen towards 17000-16500 levels while on the upside key hurdle exists at 17700-18200levels. We expect a short-term but sharp correction in the market if these expectations are not fulfilled.
For Option Callput Derivative traders :-
If you are an option trader then you have to be more cautious while trading in budget 2022. As we all knows its pre-budget days so already options premiums are higher for February 2022 settlement. In the budget session some major movement comes only if budget gives big surprise or huge disappointment bigger are chances of your losing money Market is smarter than most of us and it factors in obvious things. If you are taking some call option or put option check the risk in those particular positions. Check the risk factor i.e. how much risk you are willing to take, but that’s not enough you need to see the VIX and how much potential the script have. People do that depending upon how much risk you are willing to take If you take deep ITM call the capital blocked and risk can be too high for you to handle. If you buy Far OTM call then also you may lose all capital. For buying any option call or put and strike rate you need to have an opinion on the stock which should be based on Technical Research. Also time value is very important factor in option buying. As time lapses in series you can move more towards ITM from OTM.
25 Jan
BUDGET AHEAD: WILL BANKING SECTOR BRING MARKET BACK ON TRACK??
AXISBANK UP TO 45%UPSIDE
Axis Bank`s three-fold jump in the December quarter net profit sent its shares up 5% amid wild swings in the market on Tuesday. The stock was the top Sensex performer as a host of brokerages maintained their bullish stance, with price targets suggesting up to 45 % potential upside in the counter.The private lender reported a profit of Rs 3614 crore for the December quarter against Rs 1117 crore in the corresponding quarter last year. We have seen a similar outcome in ICICI Bank as well and believe that the thesis is likely to play out for Axis Bank as well," it said while suggesting a target of Rs 960 on the stock.
SBI CARD JUMP NEARLY 5%
Shares of SBI Cards and Payment Services on Tuesday gained nearly 5 % after the firm reported an 84 % jump in net profit for December quarter 2021. The company`s stock zoomed 4.90 % to Rs 854 .Total revenues of the company rose 24% to Rs 3140 crore during the quarter under review, as against Rs 2,540 crore in the same period of 2020-21, SBI Card said in a release.The increase in income was primarily due to higher income from fees and services during the quarter, SBI Card. The company`s asset quality improved as gross non-performing assets fell to 2.40% of gross credit, as against 4.51% as of the third quarter of 2020-21.
FEDERAL BANK NET PROFIT RISE 29%
For the quarter ending December 2021, Federal Bank reported a 29% rise in its standalone net profit at ?521.7 crore as compared to ?404 crore in the same quarter last rise. Shares of Federal Bank were trading over 2% higher in Tuesday`s afternoon deals. The bank’s capital and liquidity position is strong and would continue to be the focus area for the Bank during this period. The extent to which the Covid-19 pandemic will continue to impact the bank`s results will depend on the future developments related to the situation, as well as the outcomes of the actions taken to contain the same.
UPCOMING BANKING SECTOR RESULTS:????
CANBK, RBLBANK, PNB, CENTRAL BANK, EQUITAS BANK, INDUSLAND BANK
24 Jan
WHY TO BE CAUTIOUS WHILE TRADING IN BUDGET 1 FEB 2022
Investors should trade with caution till the Union Budget 2022-23 is presented on February 1, 2022. The word of caution comes after the strong market rally finally came to an end last Friday when both benchmark indices falling sharply since last week. Nifty index is trading below 17100 mark, While the sensex is near 58000 mark. Market is currently witnessing higher levels of nervousness due to the upcoming budget. Not just the Union Budget 2022 but markets are also expected to remain volatile due to monthly derivative expiry as well i.e. on 27 January 2022. The volatility has spiked further due to the ongoing earnings seasons. While there are many external factors that will also weigh the market in coming session, the nervousness ahead of the budget could lead to some sudden selloffs, leading to further correction. In such a scenario, traders and investors should remain cautious over the next few days, especially on the day when Union Budget 2022-2023 is presented. Markets are riding on optimism at the moment and much of it is due to the high expectations from the upcoming budget. Generally, the market does not give any major trend reversal ahead of the mega event; but this time, it looks like we are going to witness yet another unprecedented behavior of the market. Next couple of days would be quite crucial and would be interesting to see whether markets correct further or it shows some resilience to protect it is crucial supports 17000. Going by the developments witnessed in the last five trading sessions, a number of analysts indicate that the market may correct further in the near-term. Technically, Nifty has started to form lower top, lower bottom and is witnessing profit booking declines from five sessions. It also formed a Bearish candle on the daily scale. Now, till it remains below 17100, weakness could be seen towards 17000-16500 levels while on the upside key hurdle exists at 17700-18200levels. We expect a short-term but sharp correction in the market if these expectations are not fulfilled.
For Option Callput Derivative traders :-
If you are an option trader then you have to be more cautious while trading in budget 2022. As we all knows its pre-budget days so already options premiums are higher for February 2022 settlement. In the budget session some major movement comes only if budget gives big surprise or huge disappointment bigger are chances of your losing money Market is smarter than most of us and it factors in obvious things. If you are taking some call option or put option check the risk in those particular positions. Check the risk factor i.e. how much risk you are willing to take, but that’s not enough you need to see the VIX and how much potential the script have. People do that depending upon how much risk you are willing to take If you take deep ITM call the capital blocked and risk can be too high for you to handle. If you buy Far OTM call then also you may lose all capital. For buying any option call or put and strike rate you need to have an opinion on the stock which should be based on Technical Research. Also time value is very important factor in option buying. As time lapses in series you can move more towards ITM from OTM.
24 Jan
BOOM IN GAMING STOCK : INVESTOR SCRUTINIZE DELTACORP & NAZARA
Microsoft is buying gaming company and Call of duty maker activision blizzard in a $68.7 billion all-cash acquisition, sparking a buzz in the gaming industry across the globe.In India, too, players in the gaming sector are wondering what impact this deal could have on the overall market.
Nazara Technologies, which is likely to benefit the most from microsoft-activision blizzard deal. Nazara Technologies 41% income comes from its US market operations. Holds over 10% stake in this gaming company, shareholding patterns of the company for the quarter ended September 30, 2022. December shareholding patterns of the company were yet to be out. Meanwhile, shares of Nazara Technologies hit a 5 % upper circuit to Rs 2494.90 per share in the early trade.
This can also help Delta Corp, another gaming and casino. It can also act as catalyst for Delta Corp`s IPO. Delta Corp shares surged over 2 per cent to day`s high of Rs 294.45 per share on the BSE after the development. As per December shareholding pattern of Delta Corp, position unchanged at 7.49% in the quarter ended December 2021.
21 Jan
BOOM IN GAMING STOCK : INVESTOR SCRUTINIZE DELTACORP & NAZARA
Microsoft is buying gaming company and Call of duty maker activision blizzard in a $68.7 billion all-cash acquisition, sparking a buzz in the gaming industry across the globe.In India, too, players in the gaming sector are wondering what impact this deal could have on the overall market.
Nazara Technologies, which is likely to benefit the most from microsoft-activision blizzard deal. Nazara Technologies 41% income comes from its US market operations. Holds over 10% stake in this gaming company, shareholding patterns of the company for the quarter ended September 30, 2022. December shareholding patterns of the company were yet to be out. Meanwhile, shares of Nazara Technologies hit a 5 % upper circuit to Rs 2494.90 per share in the early trade.
This can also help Delta Corp, another gaming and casino. It can also act as catalyst for Delta Corp`s IPO. Delta Corp shares surged over 2 per cent to day`s high of Rs 294.45 per share on the BSE after the development. As per December shareholding pattern of Delta Corp, position unchanged at 7.49% in the quarter ended December 2021.
20 Jan
BUDGET 2022 AHEAD ; NIFTY EYE 19000 WHILE SENSEX 63000
Indian markets rallied over 4 per cent so far in January in the run-up to the Budget 2022. The index is hardly 3 per cent away from hitting its record high above 18604. that was hit back in October 2021. With less than a fortnight remaining for the announcement of the Union Budget for fiscal year 2022-23, here`s what the charts indicate for the key benchmark indices in the run-up to the mega financial event on 01 February, 2022.
The sensex Likely target: 62,500 to 63,000 Upside potential: 2.50% to 3% The Sensex has conquered the major resistance of 60,800 and managed to sustain above the same mark. This small sideways movement suggests a possible breakout above the immediate resistance of 61,600 and when that happens, one can expect a sharp surge in the direction of 62, 500
The steady rise above 18000 levels suggests that we are in a pre-budget rally as most of the dips are getting bought into. Hence, investors are advised to sit tight and maintain their positions.
We are in a Pre-budget rally. The trend is broad-based which is a very positive sign for the markets. There is buying across stocks and across sectors. If we go by the trend, we might see the market breaking previous all-time high,”
There are various expectations from the budget, as usual, every year, which includes capital expenditure and infrastructure spending, to help fuel the investment cycle, create employment opportunities and improve domestic demand.
We have collated a list of top 5 trigger points that could give a boost to D-Street in Budget 2022:
Fiscal Deficit:
The path of fiscal trajectory would be the most important part of the Union Budget 2022-2023 amid the ongoing pandemic situation. Although most analysts see the government maintaining the fiscal deficit path, if the government lowers the fiscal deficit target it could certainly add more strength to markets.
Any encouraging step which might give a clear path to lower fiscal deficit will be an important trigger for markets.
Owing to the current fragile status of the economy, government support is still needed to sustain the ongoing economic momentum. Hence, the government may not opt for an aggressive fiscal consolidation path.
Given a sharp rise in GST collection and higher advance taxes, the government may find some cushion in actual fiscal deficit in FY22 despite revenue loss due to cuts in fuel excise duties, higher subsidies and a rise in expenditures due to extension of free food grain scheme until March 2022. The government is likely to maintain its fiscal deficit target at 6.7% for FY22E.
20 Jan
NIFTY OUTLOOK FOR TOMORROW
Markets remained under pressure for the third successive session on Thursday 20 January 2022 and lost nearly 1%. The tone was negative from the beginning, tracking weak global cues which further deteriorated as the day progressed. However, a rebound in the final hour trimmed some losses. Consequently, Nifty settled around 17757 levels; down by 1.01%. Nifty broke its momentum support levels of 17900 and tested the 17700 levels. For the short term, selling pressure can push the index towards 17350-17450 mark. The medium term outlook remains intact as we don’t see any signs of trend reversal.
19 Jan
BUDGET 2022 AHEAD ; NIFTY EYE 19000 WHILE SENSEX 63000
Indian markets rallied over 4 per cent so far in January in the run-up to the Budget 2022. The index is hardly 3 per cent away from hitting its record high above 18604. that was hit back in October 2021. With less than a fortnight remaining for the announcement of the Union Budget for fiscal year 2022-23, here`s what the charts indicate for the key benchmark indices in the run-up to the mega financial event on 01 February, 2022.
The sensex Likely target: 62,500 to 63,000 Upside potential: 2.50% to 3% The Sensex has conquered the major resistance of 60,800 and managed to sustain above the same mark. This small sideways movement suggests a possible breakout above the immediate resistance of 61,600 and when that happens, one can expect a sharp surge in the direction of 62, 500
The steady rise above 18000 levels suggests that we are in a pre-budget rally as most of the dips are getting bought into. Hence, investors are advised to sit tight and maintain their positions.
We are in a Pre-budget rally. The trend is broad-based which is a very positive sign for the markets. There is buying across stocks and across sectors. If we go by the trend, we might see the market breaking previous all-time high,”
There are various expectations from the budget, as usual, every year, which includes capital expenditure and infrastructure spending, to help fuel the investment cycle, create employment opportunities and improve domestic demand.
We have collated a list of top 5 trigger points that could give a boost to D-Street in Budget 2022:
Fiscal Deficit:
The path of fiscal trajectory would be the most important part of the Union Budget 2022-2023 amid the ongoing pandemic situation. Although most analysts see the government maintaining the fiscal deficit path, if the government lowers the fiscal deficit target it could certainly add more strength to markets.
Any encouraging step which might give a clear path to lower fiscal deficit will be an important trigger for markets.
Owing to the current fragile status of the economy, government support is still needed to sustain the ongoing economic momentum. Hence, the government may not opt for an aggressive fiscal consolidation path.
Given a sharp rise in GST collection and higher advance taxes, the government may find some cushion in actual fiscal deficit in FY22 despite revenue loss due to cuts in fuel excise duties, higher subsidies and a rise in expenditures due to extension of free food grain scheme until March 2022. The government is likely to maintain its fiscal deficit target at 6.7% for FY22E.
18 Jan
How to Pick a Stock For Option Trading?
The six steps follow a logical thought process that makes it easier to pick a specific option for trading. Let`s breakdown what each of these steps involves.
1. Option Objective
The starting point when making any investment is your investment objective, and options trading is no different. What objective do you want to achieve with your option trade? Is it to speculate on a bullish or bearish view of the underlying asset? Or is it to hedge potential downside risk on a stock in which you have a significant position?
Are you putting on the trade to earn income from selling option premium? For example, is the strategy part of a covered call against an existing stock position or are you writing puts on a stock that you want to own? Using options to generate income is a vastly different approach compared to buying options to speculate or to hedge.
Your first step is to formulate what the objective of the trade is, because it forms the foundation for the subsequent steps.
2. Risk/Reward
The next step is to determine your risk-reward payoff, which should be dependent on your risk tolerance or appetite for risk. If you are a conservative investor or trader, then aggressive strategies such as writing puts or buying a large amount of deep out of the money (OTM) options may not be suited to you. Every option strategy has a well-defined risk and reward profile, so make sure you understand it thoroughly.
3. Check the Volatility
Implied volatility is one of the most important determinants of an option’s price, so get a good read on the level of implied volatility for the options you are considering. Compare the level of implied volatility with the stock’s historical volatility and the level of volatility in the broad market, since this will be a key factor in identifying your option trade/strategy.
Implied volatility lets you know whether other traders are expecting the stock to move a lot or not. High implied volatility will push up premiums, making writing an option more attractive, assuming the trader thinks volatility will not keep increasing (which could increase the chance of the option being exercised). Low implied volatility means cheaper option premiums, which is good for buying options if a trader expects the underlying stock will move enough to increase the value of the options.
4. Identify Events
Events can be classified into two broad categories: market-wide and stock-specific. Market-wide events are those that impact the broad markets, such as Federal Reserve announcements and economic data releases. Stock-specific events are things like earnings reports, product launches, and spinoffs.
An event can have a significant effect on implied volatility before its actual occurrence, and the event can have a huge impact on the stock price when it does occur. So do you want to capitalize on the surge in volatility before a key event, or would you rather wait on the sidelines until things settle down?
Identifying events that may impact the underlying asset can help you decide on the appropriate time frame and expiration date for your option trade.
5. Devise a Strategy
Based on the analysis conducted in the previous steps, you now know your investment objective, desired risk-reward payoff, level of implied and historical volatility, and key events that may affect the underlying asset. Going through the four steps makes it much easier to identify a specific option strategy.
For example, let’s say you are a conservative investor with a sizable stock portfolio and want to earn premium income before companies commence reporting their quarterly earnings in a couple of months. You may, therefore, opt for a covered call writing strategy, which involves writing calls on some or all of the stocks in your portfolio.
As another example, if you are an aggressive investor who likes long shots and is convinced that the markets are headed for a big decline within six months, you may decide to buy puts on major stock indices.
6. Establish Parameters
Now that you have identified the specific option strategy you want to implement, all that remains is to establish option parameters like expiration dates, strike prices, and option deltas. For example, you may want to buy a call with the longest possible expiration but at the lowest possible cost, in which case an out-of-the-money call may be suitable. Conversely, if you desire a call with a high delta, you may prefer an in-the-money option.
17 Jan
NIFTY AND OPTION CALL PUT TIPS
We kick-started the new week on 10 Jan 2022 on a cheerful note despite mixed global cues. Barring small dip around the mid-session, Nifty maintained its positive posture throughout the session and marched gradually towards the 18000 mark. Due to some tail end buying Nifty finally surpassed the psychological junction to conclude the session with over a percent gains. On Tuesday 11 Jan 2022 Despite massive volatility in US markets last night, our markets started the session on a flat note and then remained range bound for the major part of the day. Tuesday although we could see indices closing in the green, it was certainly not a smooth ride for traders as we witnessed couple of declines during the session. Fortunately these small dips were bought into by the opportunist traders to send the Nifty tad above the 18050 mark. Wednesday 12 Jan 2022 morning, the global set up was just ideal to have a head-start beyond the key resistance level of 18100. Post the gap up opening on Wednesday, our markets had a brief period of consolidation which was then followed by a slow and gradual move towards the 18200 mark. With the help of the broad based buying, the Nifty eventually ended the session above 18200 with some authority by adding over eight tenths of a percent gains. We had yet another gap up opening on 13 Jan 2022 Thursday morning as indicated by the Nifty. However this is followed by similar price action where we saw minor dip in the initial hour which eventually got bought into. Thereafter, the benchmark index remained in a range and with the help of some late recovery, managed to close almost at the highest point of the day tad above 18250. Friday 14 January 2022 market ended flat in the volatile session. At close, the Sensex was down 12 points at 61223, and the Nifty was down 2 points at 18255.
NIFTY: A STRONG SUPPORT WILL BE @ 17400; STRONG RESISTANCE LEVEL SEEN @ 18200
The market is now showing a typical behavior which generally happens after a decent rally and if any major event is close by. Both these conditions meet here as we have seen a spectacular recovery of more than 1800 points in such a short span after making a low around 16400. And we are now approaching the mega event Budget, so we are seeing this range bound activity in the benchmark index. For the coming session, the next level to watch out for remains at 18350 and once its surpassed, there is no major level visible before 18600. As of now, we do not expect a runaway move in the forthcoming session and hence, traders are advised to keep focusing on individual stocks.
TECHNICALLY SPEAKING
We are seeing a pullback after a vertical rally on the back of some weakness in global markets however there are no such negative cues for the market. If we look at the statistics then Indian Equity markets do well in the first two weeks of January but then it starts to correct near to Makar Sankranti or in between 15-20th January then there is a post-budget rally in the market. This trend may be replicated this year as well but the overall view is bullish and any pullback will be a good buying opportunity. Technically, 18000 is an immediate psychological support level while 17800/17650 is critical support levels.
Posted by NIFTY TRADING TIPS at 1/14/2022 04:14:00 pm No comments:
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Thursday, 13 January 2022
NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 14 JAN 2022
??HAPPY LOHRI??
Markets extended gains for the fifth straight session, but it looks like bulls are showing signs of fatigue as trading largely remained rangebound. Nifty had a volatile session amid weak global cues and weekly expiry. It closes above 18,250 as bulls maintain the momentum on Dalal Street. Nifty’s ascent towards 18,605 is on the radar. Interestingly, the gains came despite US CPI surging to the highest level since June 1982 and core CPI registering the biggest advance since 1991. The stronger readings reinforce the need for quicker interest rate hikes by the Federal Reserve. Benchmark indices ended with marginal gains in the volatile session on January 13 with buying seen in the metal and pharma names. At close, the Sensex was up 85 points at 61235, and the Nifty was up 45 points at 18257.
The index has once again given a flat to a marginal positive start in today`s session. Volatility was visible owing to weekly expiry with wild swings on both sides. Going ahead 17950 -18025 will be good short-term support for upcoming trading sessions and on the upside 18300 will act as new immediate resistance. A hammer candlestick pattern is visible on daily charts indicating that the steam is cooling off and we can see sideways or profit booking sessions in the coming days. The structure of the index is in favor of bulls. Market breadth has remained at 2:1 with 36 stocks on the advancing side & 14 stocks on the declining side.
Resistance: 18300, 18375, 18450
Support: 18200, 18150, 18100
15 Jan
LIMITED RISK IN OPTION IS A MYTH ???
When most of the world was reminiscing the bittersweet moments of 2021 and anticipating the arrival of 2022, Dinesh M, a Chennai-based stock trader, was wondering how he would be able to pay a penalty of ?12 lakh because of SEBI’s new rules for options.
For Dinesh M, the New Year started off with him making a YouTube video begging for crowd funding through a story that demonstrates how vulnerable retail traders suddenly are in the Indian stock market.
Dr. Sanjay, another victim of the same rule, saw ?35 lakh being wiped out from his account because of a price difference of 35 paise.
Shweta, who started trading to overcome depression, experienced another level of stress induced due to misfiring option trade in the backdrop of SEBI’s new rules that she was never informed about.
There are countless stories of retail traders dealing in options who are facing financial crisis, emotional blow, and havoc in their family life due to new rules introduced by Securities and Exchange Board of India (SEBI) on October 16 that came to a head with respect to a Hindalco options trade on the December 30 expiry.
As per new rules, introduced from November expiry, if Spot price of a stock closes below a Strike price (means In The Money for Put holders), then a trader holding Put options of that stock either needs to square off the positions before expiry or provide the shares. New rules meant option has to be settled by delivery. Thus, anyone holding In the Money (ITM) option will receive/give delivery of shares depending on whether one is holding Call or Put options.
For the uninitiated, put option means the trader is expecting price to go down from Spot price while Call option means a trader is expecting the stock price to move up from Spot price (current price). As per theory, buying option has a limited liability where a trader`s loss is restricted to the premium paid while selling option has unlimited liability. But due to the new rules, even a buyer of option has to bear unlimited liability in case she could not square off positions before expiry and option becomes an ITM.
Over a dozen traders who lost a big fortune and are trading through different broking Firms like Zerodha, ICICI Direct, Profitmart, and Upstox. None of them were aware about changes in rules where delivery of shares for ITM trades is made mandatory. Not single retail traders was informed by their broker about the change in SEBI’s rules, nor were they given any warning before they came to face the liability that they now find hard to handle.
15 Jan
WHAT WILL HAPPEN IF OPTION CONTRACT IS NOT SQUARED OFF?
FOR LIVE TRADING TIPS IN OPTION CALL PUT/OPTION STRATEGY/STOCK FUTURE FILL THIS FORM GIVEN HERE>>>
There are some new regulations in options trading which every option trader should know. If Your option in OTM you loose only premium but if god forbid your stock option expires ITM and you missed to square off you may loose a fortune. If your Call option is ITM then it is your responsibility to give the delivery of the underlying asset. If you don’t have those shares in your demat account then you need to buy it from the secondary market otherwise you will be fined with hefty penalties. The underlying shares will be debited from your demat account and you will receive money. If your Put option is ITM then you have to keep sufficient balance equivalent to the lots you have traded in your trading account in order to pay for the underlying. Your demat account will be credited by the stocks and money will be deducted from your trading account. If you are trading in Index options, then there will not be any physical settlement. There will be cash settlement for the same. Only the credit and debit difference amount will be adjusted at expiry. No worries of contact square off untill & unless it is an index option but if you have traded in stock option you must have read this article of us http://optioncallputtradingtips.blogspot.com/2022/01/limited-risk-in-option-is-myth.html . In December 2021 day i.e. 31 December 2021 traders got stuck in Hindalco & lost as much as 42 lakh within just few minutes, because of 1 trade in option which was out the money when traded & before contact expired it get settled as in the money.
14 Jan
How can we make profit from futures?
Futures and options are both derivatives, meaning that they derive their value from underlying assets. In simple terms, futures are derivative financial contracts that make it obligatory for the parties involved to transact an asset at a predetermined price on a predetermined future date. Options, on the other hand, do not come with any such obligation. Instead, they give the buyer of the option the choice to transact an asset at a predetermined price on a predetermined future date.
Don’t lose track of the key elements of the trade
Before you enter into a trade, make sure you get the structure right. More specifically, you need to keep the strike price, the premium and the expiry in mind. Ensure that the premium you’re paying is within your budget, and is generally not way above the likely profits that the trade may bring in. The expiry is important too. Near-month expiry may be more expensive, while far-month expiry means less liquidity. Keep this in mind, so you can strike the right balance.
Use FnO trading as a hedging mechanism
Options trading and futures trading offer a lot of leverage.This is one of the key reasons many traders gravitate towards FnO trading. You can make use of the FnO market as a hedging mechanism too. For instance, if you hold stocks of a particular company, you can hedge your position by purchasing at-the-money put options. So, if the stock price rises, you need not exercise the option. If it falls, your options contract can hedge your spot market position.
Make use of profit targets and stop losses
Another excellent way to profit from FnO trading is to make use of stop losses and profit targets. Stop losses keep your losses from going below a certain point, and they can prove to be very useful if the market moves differently compared to what you expected. Profit targets, on the other hand, enable you to exit your position when you’re in the green zone. Getting too greedy and waiting to make more gains could turn out to be detrimental if the market falls.
20 Nov
34875 RS PROFIT BOOKED IN TODAY`S LIVE CALLS
TATACHEM FUTURE CALL ON FIREEE ACHIEVED BOTH TARGET 903/908 BUYING FROM 898
PROFIT OF RS 15000
NIFTY FUTURE CALL HIT BOTH TARGET 17945/18010 BUYING GIVEN FROM 17875
PROFIT OF RS 10250
JKCEMENT 3700 CALL ACHIEVED TARGET 145 BUYING FROM 90
PROFIT OF RS 9625
NET PROFIT OF RS 34875
TIPS GIVEN IN TODAY`S MORNING POST TO CHECK CLICK ON ??
https://equitycashcalls.blogspot.com/2021/11/blog-post_8.html
FOR SUCH LIVE CALL VIA WHATS AND SMS CALL ME ON 9039000614
20 Nov
F&O expiry: Nifty to trade in (18200-17700) IN WEEK (22-26 NOV 2021)
FOR MORE UPDATE ON NIFTY FILL THE FORM->>>>
Weak listing of India’s largest IPO and soft global market amid rising inflation woes impacted domestic sentiment. In the context of a weak global market, contraction extended in metal and crude oil prices weighing down the Indian market. The auto sector was also under pressure as the industry reported weak festive sales numbers owing to poor demand for two-wheelers and supply shortage in semiconductors. Over the last few weeks, the Nifty has been stuck in a range . On the daily chart the Nifty has once again moved below the 20-day SMA on Tuesday. In the process, the Nifty has corrected and broken its recent supports, implying the short-term bias is weak. The Nifty is likely to drift down further towards the next major supports of 17,905-17,798 in the very near term. Any pullback rallies could find resistance at 18,133. Index closed the week at 17,746 with loss of nearly two per cent and formed a bearish candle on weekly chart hinting weakness in the markets. Now next good support for the market is coming near 17,600 zone. If managed to hold above-said levels, one can expect a good pull back in the index again towards 18,000 mark but if failed to hold then we may see more drag down in Nifty towards 17300-17000 mark, the immediate hurdle is coming near 17830-17940 zone where one can again lock their gains in longs. The strategy which we are suggesting for the weekly expiry is a Bearish strategyIn the week gone by, BSE Sensex fell 1,111to close at 59,575, while the Nifty50 rose 337 points to close at 17,764 levels.
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Resistance: 18000, 18100, 18200
Support: 17950, 17850, 17750
19 Nov
NIFTY UPDATE OF 18 NOV 2021
Nifty exhibited high volatility in trades on Thursday. The key indices witnessed wilted under severe selling pressure in the first-half of the day, before staging a partially mid-way, only to lose ground once again. Nifty have recouped some of its losses in the last half-hour of trades or so on the back of renewed buying interest in banks and index heavyweight Reliance Industries.The BSE Sensex was down 375 points at 59,633, and the NSE Nifty had slipped 132 points to 17,767.One 97 communications, the parent company of digital payments major Paytm, made a weak stock market debut as its shares got listed at Rs 1,950, a 9 per cent discount against its issue price of Rs 2,150 on the National Stock Exchange on Thursday. On the BSE, the stock opened at Rs 1,955 per share.
FOR MORE NIFTY UPDATES PLEASE FILL THE FORM->>>>
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Read more: http://niftytipsniftylevels.blogspot.com/#ixzz7CejKpY97
19 Nov
LARGEST IPO “PAYTM” WITH MEGA FALL??
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"Biggest IPO, biggest crash"
After india’s largest-ever IPO paytm parent one97 communications set another record on debut the biggest drop on opening day for share sales worth more than Rs 1000 crore.
The stock listed at Rs 1950, a discount of 9.3% to its offer price of Rs 2150, and closed at Rs 1564 down 27%. This is the first of six recent startup ipo’ s to list below the offer price. Anil ambani-controlled reliance power had plunged 21% on debut in february 2008 after an Rs 11700 crore IPO. Investo Rs lost nearly Rs 5000 crore of their Rs 18300 crore investment in the one97 IPO. While institutional investors lost Rs 4254 crore, retail investors` net loss amounted to Rs 567 crore. High net worth induvial investors lost Rs 166 crore.In comparison, shares of its new-age peer zomato ltd. Had hit the upper circuit on its listing day, before ending the trading session 66% higher. Shares of nykaa’s parent fsn e-commerce ventures ltd. Nearly doubled over its issue price on market debut.We hope the paytm story can inspire entrepreneurs, even for the ones who do not have the background, but we hope this inspires them that they can do it. we believe paytm’s business model lacks focus and direction. Unless paytm lends, it can’t make significant money by merely being a distributor. We therefore question its ability to achieve scale with profitability. Paytm financials are not very impressive and the growth prospects seem limited... Obviously the company lacks a clear path to profits.
17 Nov
5850 PROFIT BOOKED IN TODAY`S CASH CALLS
FOR MORE LIVE MARKET TRADING TIPS PLEASE FILL UP THIS FORM --------->
BRIGADE ACHIEVED BOTH TGT @ 507 / 513 BUYING GIVEN FROM 501
BOOKED PROFIT OF 3600
SUNTECK ACHIEVED 1ST TGT @ 499 BUYING GIVEN FROM 493
BOOKED PROFIT OF 1200
GUJRAT GAS ACHIEVED 1ST TGT @ 674 BUYING GIVEN FROM 667
BOOKED PROFIT OF 1050
BUYING CALL GIVEN IN TODAY`S POST ??
https://beststockfuturecalls.blogspot.com/2021/11/equity-cash-call-for-today-17-nov-2021.html
17 Nov
NIFTY TREND FOR 18 NOV 2021
After a gap-down opening, the benchmark index continued the downside move throughout the day and settled at 17898 levels with a loss , while Bank Nifty slipped more than 200 points to close at 38041 levels. Technically, the index has formed a bearish candle on the daily time frame which shows weakness in the counter. For the second straight day, Reliance Industries accounted for almost 50 per cent of the Sensex loss. The stock ended 2 per cent lower at Rs 2,462. Axis Bank and Kotak Bank were also down around 2 per cent each. On an hourly chart, the index has given a trend line breakdown, which points out some corrections. Furthermore, the index has given closing below 21 DMA as well as the stochastic indicator is trading negative crossover. At present, the index has support at 17750 levels, while resistance is at 18100 levels.
FOR MORE NIFTY UPDATES PLEASE FILL THE FORM->>>>
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Resistance: 18100, 18200, 18300
Support: 18000, 17900, 17800
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz7CTdE5lzv
15 Nov
9000 PROFIT BOOKED IN IPCALAB FUT CALL
FOR MORE LIVE MARKET TRADING TIPS PLEASE FILL UP THIS FORM ??????
IPCALAB FUT ACHIEVED 1ST TGT @ 2249 BUYING CALL GIVE FROM 2209 BOOKED PROFIT OF 9000
HOLD 2ND LOT FOR FINAL TGT 2294!!!!!
BUYING CALL GIVEN IN TODAY`S POST ??
https://beststockfuturecalls.blogspot.com/2021/11/ipcalab-future-tips-for-15-nov-2021.html
15 Nov
NIFTY OULTOOK FOR 16 NOV 2021
IPCALAB future call given in morning post..acheived 1 tg 2343 hope u have booked profit of 16087(1 lot)..Continue to hold second lot for final target .Also hold both the lots of INDIGO 2360 CALL..(closed at 70)
FOR MORE SUCH CALLS FILL THE FORM ->>>>>
Markets showed a very muted performance in today`s trading session, staying at a very flattish zone throughout the day. There was profit-taking towards the closing hours as markets erased most of its early gains to end a tad higher from its previous close. On daily charts, Nifty has formed a small bearish candle, which indicates temporary weakness. Also, the index has maintained a higher bottom formation which is broadly positive. Domestic market was trading with a negative bias, between gains and losses, tracking volatile global markets and in the wake of domestic inflation data. There was profit-taking towards the closing hours as markets erased most of its early gains to end a tad higher from its previous close. On daily charts, Nifty has formed a small bearish candle, which indicates temporary weakness. However, at the same time, the index has been consistently taking support near the 20 days SMA. Also, the index has maintained a higher bottom formation which is broadly positive. We are of the view that the 20 days SMA would act as a trend decider level for the bulls, and above the same, the uptrend formation could continue up to 18200-18275 levels. On the other hand, the dismissal of 18040 or 20 days SMA could possibly open another correction wave till 18000-17925.
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Resistance: 18200, 18300, 18400
Support: 18050, 17950, 17850
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz7CHwEMoqA
11 Nov
HOW CAN I GET BETTER IN STOCK FUTURE TRADING ?
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5 Things to know for better stock future trading ????
1. Manage your risk effectively
Managing risk is an essential part of any futures trading strategy. If you’re not protecting your investments through the smart use of buy and sell stops to limit losses or adopting hedging strategies such as buying puts – it might be time to reevaluate your tactics. One more point: Don’t sit on your losses too long, or send too much good money after bad in an effort to average down a losing position. While each trade is different, in most cases you’re better off setting tighter loss parameters and moving along to the next opportunity.
2. Master your Trading Psychology
Maintaining discipline and emotional distance is a key component of smart trading. Successful traders have the discipline to stick with their trading plan, while also maintaining the flexibility to seize upon developing opportunities. The more you can remove emotion from trading, generally speaking, the better off you’ll be. Red numbers can spook a trader and lead to an ill-advised sell; greed, on the other hand, can result in a trader hanging onto a winning position for too long.
3. Sharpen Your Trading Skills
A good trader has many tools in his toolbox — and knows precisely the right one for any situation. If technical or fundamental analysis isn’t your strong suit, make an effort to improve your knowledge.
4. Avoid the Urge to Trade with Excessive Frequency
It’s easy to get the itch to trade if you haven’t done so in awhile, but circumstances sometimes favor caution or inactivity. Let the market come to you never trade simply to trade. If you’re running cold and you’re trading in multiple markets, consider streamlining your positions. Successful trading requires patience, discipline and strong knowledge of individual markets. Sometimes it’s better to move with deliberation.
5. Use the Proper Futures Trading Platform
A builder is only as good as his materials — and a trader can be made or broken by his choice of trading platform. Choose one that’s unreliable, and you might miss out on your best trading opportunity of the year.To give you the best chance at success, you need a platform with 24/7 trades, high-end analysis, a wide range of platforms and services designed to meet the needs of each trader and the technological tools to spot market opportunities as they develop.With the appropriate support from a reliable, full-featured futures trading platform, you’ll have the resources required to become a better trader.
11 Nov
34875 RS PROFIT BOOKED IN TODAY`S LIVE CALLS
TATACHEM FUTURE CALL ON FIREEE ACHIEVED BOTH TARGET 903/908 BUYING FROM 898
PROFIT OF RS 15000
NIFTY FUTURE CALL HIT BOTH TARGET 17945/18010 BUYING GIVEN FROM 17875
PROFIT OF RS 10250
JKCEMENT 3700 CALL ACHIEVED TARGET 145 BUYING FROM 90
PROFIT OF RS 9625
NET PROFIT OF RS 34875
TIPS GIVEN IN TODAY`S MORNING POST TO CHECK CLICK ON ??
https://equitycashcalls.blogspot.com/2021/11/blog-post_8.html
FOR SUCH LIVE CALL VIA WHATS AND SMS CALL ME ON 9039000614
11 Nov
29225 PROFIT IN INTRADAY STOCK FUTURE CALLS
29225 PROFIT IN INTRADAY STOCK FUTURE CALLS
DLF FUT ACHIEVED 1ST TGT@ 439.50 BUYING GIVEN FROM 436.50
BOOKED PROFIT OF 4950
TATA STEEL ACHIEVED 1ST TGT @ 1321 BUYING GIVEN FROM 1308
BOOKED PROFIT OF 5525
MC DOWELLS BOTH TGT ACHIEVED 966.50/971.50 BUYING GIVEN FROM 961.50 BOOKED PROFIT OF 18750
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10 Nov
NIFTY PREDICTION FOR TOMORROW 11 NOV 2021
FOR LIVE TRADING TIPS FILL THE FORM GIVEN HERE >>>
Markets remained volatile and ended marginally lower, in continuation to the prevailing trend. Weak global cues triggered a gap-down start however recovery in the select index majors trimmed the losses as the session progressed. A mixed trend was witnessed on the sectoral front and the broader indices also slipped marginally in the red after the recent surge. We are seeing mixed signals at present. At one end, participants are cautious due to continuous foreign outflow and mixed earnings announcements. On the other hand, improvement in the macro environment, improving demand and reopening of the economy is signaling positivity. All these factors put together are triggering volatile swings in the market. And, we expect choppiness to remain high due to the scheduled weekly expiry on Thursday. Participants should maintain extra caution in the selection of stocks and focus more on risk management. Markets languished in the negative territory for a major part of the session as Asian cues were mixed. After the initial intraday selloff, Nifty found support near 17900 and reversed sharply in the closing hours. On the back of negative global cues and Nifty, the index opened down, but it recovered 145 points from the day low and filled the gap and made an intraday high at 18060 and settling at 18017 with a marginal loss of 27 points while Bank Nifty settled at 39023 with a loss of 45 points. Technically, the narrow range activity near the 20 day SMA clearly indicates indecisiveness between the bulls and bears. However, the intraday texture is still bullish and is likely to continue in the near future. The intraday trading set up suggests 18000 would be the key support level for the traders. Trading above the same, the index can move up to 18100-18200 levels. On the flip side, dismissal of 17900 may trigger short-term correction up to 17850-17800 levels.
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Resistance: 18100, 18200, 18300
Support: 17950, 17850, 17750
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz7Bojq23KF
09 Nov
TIPS FOR PICKING THE RIGHT STOCKS
FOR BEST INTRADAY LIVE MARKET TRADING TIPS PLEASE FILL UP THIS FORM ??????????????????????
· Volume traded: Look at the total number of shares being traded within a particular timeframe. This will tell you about the volumes being bought and sold. Intraday traders should pick stocks that trade in high volumes.
· Trending stock: Is there buzz around a particular stock? Such stocks could offer lucrative opportunities to day traders. They are likely to show momentum in one or the other direction, along with good trading volumes.
· Recent analysis: Look at how stocks on your shortlist have performed over the last week or two. Has the closing price been consistently positive or negative over the period? Assess the likely movement for the day before placing a buy or sell order.
· Breakout stocks: Keep an eye on the resistance and support levels of your chosen stocks. The resistance level is the price beyond which a stock is not expected to rise. Meanwhile, the support level is the price beyond which a stock is unlikely to fall.
· Gainers and losers: Most brokers will highlight the top gainers and losers of the day. Track the movements of these stocks closely as you decide on your intraday positions.
· Monitor select stocks: Thousands of stocks are traded on the stock exchange. Day traders cannot possibly keep tabs on them all. That is why most traders focus their attention on a few shortlisted stocks. By researching these stocks thoroughly, the trader can grab profitable opportunities as they arise.
METROPOLIS GIVEN IN TODAY`S POST TO CHECK VISIT http://optioncallputtradingtips.blogspot.com/2021/11/metropolis-option-strategy-for-november.html
METROPOLIS 3200 CALL ON FIREEE BOOK PROFIT @ 88-89 BUY GIVEN @ 62
INVESTMENT 12400
PROFIT OF 5200
NET RETURN 17600
09 Nov
NIFTY PREDICTION & OPTION CALL PUT TIPS FOR TOMORROW 10 NOV 2021
After a positive opening on Tuesday 9 November 2021 , the domestic market traded lower as private banking stocks were under pressure following dull global markets. However, auto, PSBs and consumer durables climbed against the market trend with small and mid-cap stocks outperforming. Despite the passage of the long-awaited infrastructure bill, the gains in the US market were capped as investors cautiously awaited the US inflation data. nifty opened the day with gap up but showed a dull moment throughout the day & closed a day at 18044 with minimal loss. At Close, the Sensex was down 112 points at 60433, and the Nifty was down 24 points at 18044. M&M, Tata Motors, Hero MotoCorp, ONGC and SBI were among the major Nifty gainers. Losers included Britannia Industries, HDFC Bank, Maruti Suzuki, JSW Steel and Power Grid. Among sectors, auto and capital goods indices added 1% each, while buying is seen in the power, oil & gas, pharma names. However, metal and banking names remained under pressure.
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz7Birrayn0
08 Nov
TATACHEM & EICHERMOT FUTURE ACHIEVED TARGETS
NET PROFIT 41250
TATA CHEM FUT ACHIEVED BOTH TARGET 903/908
BUYING GIVEN FROM 898 BOOKED PROFIT OF 15000
EICHERMOT FUT ACHIEVED BOTH TARGET 2738/2763
BUYING GIVEN FROM 2713 BOOKED PROFIT OF 26250
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29 Oct
NIFTY FUTURE ROCKS...
NIFTY FUTURE LEVEL PREDICTED IN YESTERDAY EVENING POST TO CHECK VISIT http://niftytipsniftylevels.blogspot.com/2021/10/nifty-prediction-for-tomorrow-29-oct.html
NIFTY FUTURE ACHIEVED 1ST TARGET 17940 BUY GIVEN @ 17870
PROFIT OF 3500
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz7Ag571PUT
28 Oct
50150 PROFIT BOOKED IN TODAY`S STOCK FUTURE CALLS
NET PROFIT 50150 ??????
BUYING GIVEN IN TODAY’S POST??
https://beststockfuturecalls.blogspot.com/2021/10/intraday-live-market-trading-tips-for.html
SYNGENE FUT ACHIEVED TARGET @ 559 BUYING GIVEN FROM 551 BOOKED PROFIT OF 6800
CIPLA FUT ACHIEVED BOTH TARGETS 916/923 BUYING GIVE FROM 909 BOOKED PROFIT OF 13650
DLF FUT ACHIEVED BOTH TARGETS 418.50/421.50 BUYING GIVEN FROM 415.50 BOOKED PROFIT OF 29700
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28 Oct
50150 PROFIT BOOKED IN TODAY`S STOCK FUTURE CALLS
NET PROFIT 50150 ??????
BUYING GIVEN IN TODAY’S POST??
https://beststockfuturecalls.blogspot.com/2021/10/intraday-live-market-trading-tips-for.html
SYNGENE FUT ACHIEVED TARGET @ 559 BUYING GIVEN FROM 551 BOOKED PROFIT OF 6800
CIPLA FUT ACHIEVED BOTH TARGETS 916/923 BUYING GIVE FROM 909 BOOKED PROFIT OF 13650
DLF FUT ACHIEVED BOTH TARGETS 418.50/421.50 BUYING GIVEN FROM 415.50 BOOKED PROFIT OF 29700
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28 Oct
NIFTY PREDICTION FOR TOMORROW 28 OCT 2021
Nifty opened Wednesday 27 october 2021 with a small gap but unable to sustain on highs & showed profit booking resulting closed a day at 18210 with loss of half percent and formed again a bearish candle on the daily chart. Benchmark indices erased the opening gains in the final hour and ended lower with Nifty below 18200. At close, the Sensex was down 207 points at 61143, and the Nifty was down 57 points at 18211.
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz7AYv2Gg1o
25 Oct
HOW DO YOU CREATE AN OPTION STRATEGY?
The options strategy consists of buying one put in hopes of profiting from a decline in the underlying stock/index. But by writing another put with the same expiration, at a lower strike price, you are making a way to offset some of the cost. This winning strategy requires a net cash outlay or net debit at the outset.
WHAT ARE THE DIFFERENT TYPE OF STRATEGIES FOR TRADING IN OPTION ?
There are many options strategies that you will use over the period of time in markets. But, there are roughly three types of strategies for trading in options. Firstly, you have the bullish strategies like bull call spread and bull put spread. Secondly, you have the bearish types of strategy such as bear call spread and bear put spread. Thirdly, there is the neutral options strategy such as Long and Short Straddle, Long and Short Strangle etc. Before you begin reading about options strategies, do open a demat account and trading account to be ready. You may never know when you get an opportunity to try out a winning strategy
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25 Oct
NIFTY PREDICTION FOR TOMORROW 26 OCT 2021
A volatile trading session ended on flat note, bears taking a breather after the recent fall. After the initial uptick, the indices failed to hold the gains and started drifting lower as the session progressed. However, a sharp surge in the select banking majors, thanks to positive earnings by the ICICI Bank, not only capped the downside but also helped the index to pare the losses. Consequently, the Nifty closed at 18125 levels. Nifty opened with an upward gap and extended its selling pressure in the first half of the session. In the latter half, we saw some buying interest at lower levels forming a long lower shadow on the daily chart. The Nifty closed at 18125 with a gain of 10 points (0.06%), while the Sensex gained 145 points (0.24%).
The next higher levels to be watched are around 18300 levels. Any sustainable move above 18250 levels may cause momentum towards 18300-18500 levels. On the downside, any violation of an intraday support zone of 18100 levels may cause profit booking towards 18000-17800 levels. The daily strength indicator RSI has eased off from the overbought zone indicating profit booking at higher levels. We expect the banking pack to remain in focus as Axis Bank and Kotak Bank will report their quarterly results on 26 oct 2021. On the index front, Nifty should hold 18000 levels for any rebound else profit taking would resume. Needless to say, the scheduled monthly f&o expiry will keep the choppiness high across the board. Amid all, participants should continue with a cautious approach until we see some concrete sign of trend resumption.
More about intraday tips Whatsapp On 9039542248
Resistance: 18250, 18350, 18450
Support: 18150, 18050, 17950
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz7AJ9HuyeF
25 Oct
61600 PROFIT BOOKED IN INTRADAY STOCK FUTURE CALLS
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AXIS BANK HIT BOTH TGT @ 837.50/842 BUYING CALL GIVEN FROM 833.50
BOOED PROFIT OF 15000
ICICIBANK HIT 1ST TGT @ 831/841BUYING CALL GIVEN FROM 821
BOOKED PROFIT OF 41200
TECHM HIT 1ST TGT @ 1512 BUYING GIVEN FROM 1503
BOOKED PROFIT OF 5400
BUYING GIVEN IN TODAY`S POST??
https://beststockfuturecalls.blogspot.com/2021/10/stock-future-trading-tips-for-25-oct.html
25 Oct
FUTURE & OPTION CALLPUT TIPS ROCKSSS
F&O TIPS GIVEN IN TODAY`S POST TO CHECK VISIT http://niftytipsniftylevels.blogspot.com/2021/10/option-callput-tips-for-25-oct-2021.html
AXISBANK 920 NOV CALL ACHIEVED TARGET 25 BUY GIVEN @ 20 PROFIT OF 6000
BANKNIFTY 40000 28 OCT PUT ACHIEVED TARGET 140 BUY GIVEN @ 100 PROFIT OF 1000
AXISBANK FUTURE ACHIEVED 1ST TARGET 845 BUY GIVEN @ 833 PROFIT OF 14400
ICICIBANK FUTURE ACHIEVED 1ST TARGET 835 BUY GIVEN @ 821 PROFIT OF 19250
NET PROFIT TODAY 40650
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz7AHh7Y8Ct
22 Oct
SO FAR 241290 RS PROFIT BOOKED IN OCT MONTH`S STOCK FUTURE CALLS
FOR SUCH LIVE CALLS WHATS APP ON 9039000614
TOTAL NUMBER OF CALLS 44
CALLS BOOKED IN PROFIT 34
CALLS IN LOSS 10
NET PROFIT OF RS 241290
22 Oct
30700/- PROFIT BOOKED IN STOCK FUTURE CALLS
FOR MORE TRADING TIPS WHATSAPP ON 7772909587
INDUSINDBANK ACHIEVED 1ST TARGET @ 1195 BUYING GIVEN FROM 1190 BOOKED PROFIT OF 4500
DLF ACHIEVED BOTH TARGETS 415.50 /417.50 BUYING GIVEN FROM 413.50
BOOKED PROFIT OF 19800
SUNPHARMA ACHIEVED 1ST TARGET @ 826 BUYING GIVEN FROM 822 BOOKED PROFIT OF 6400
BUYING CALL GIVEN IN TODAY`S POST??
https://beststockfuturecalls.blogspot.com/2021/10/intraday-stock-future-trading-tips-for.html
22 Oct
BANKBARODA OPTION STRATEGY BOOK PROFIT
STRATEGY GIVEN IN 20 OCT 2021 TO CHECK VISIT http://optioncallputtradingtips.blogspot.com/2021/10/bankbaroda-option-strategy-for-october.html
BANKBARODA 100 CALL BOOK PROFIT NEAR 2.8-3 BUY GIVEN @ 1.6 PROFIT OF 14040
BANKBARODA 80 PUT EXIT NEAR 0.40 BUY GIVEN @ 0.70 LOSS OF 3510
NET PROFIT 10530
FOR MORE DETAILS WHATSAPP ON 9039542248
22 Oct
NIFTY PREDICTION FOR NEXT WEEK 25 OCT TO 29 OCT 2021
WEEKLY RESISTANCE FOR NIFTY: 18350, 18450, 18550
PIVOT POINT: 18250
WEEKLY SUPPORT FOR NIFTY: 18150, 18050, 17900
WEEKLY CHART FOR NIFTY
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz7A1ZiwNFD
22 Oct
30700 PROFIT BOOKED IN STOCK FUTURE CALLS
FOR MORE TRADING TIPS WHATSAPP ON 7772909587
INDUSINBANK ACHIEVED 1ST TARGET @ 1195 BUYING GIVEN FROM 1190 BOOKED PROFIT OF 4500
DLF ACHIEVED BOTH TARGETS @ 415.50 /417.50 BUYING GIVEN FROM 413.50
BOOKED PROFIT OF 19800
SUNPHARMA ACHIEVED 1ST TARGET @ 826 BUYING GIVEN FROM 822 BOOKED PROFIT OF 6400
BUYING CALL GIVEN IN TODAY`S POST??
https://beststockfuturecalls.blogspot.com/2021/10/intraday-stock-future-trading-tips-for.html
22 Oct
BANKBARODA OPTION STRATEGY BOOK PROFIT
STRATEGY GIVEN IN 20 OCT 2021 TO CHECK VISIT http://optioncallputtradingtips.blogspot.com/2021/10/bankbaroda-option-strategy-for-october.html
BANKBARODA 100 CALL BOOK PROFIT NEAR 2.8-3 BUY GIVEN @ 1.6 PROFIT OF 14040
BANKBARODA 80 PUT EXIT NEAR 0.40 BUY GIVEN @ 0.70 LOSS OF 3510
NET PROFIT 10530
FOR MORE DETAILS WHATSAPP ON 9039542248
22 Oct
NIFTY OUTLOOK & OPTION CALLPUT TIPS FOR 22 OCT 2021
The Nifty opened gap up only to face fresh round of selling near the 20 HMA. On the way down, it breached the level of 18050. However it received support as it approached the crucial 18000 mark. Market witnessed selling on the third straight session on October 21 mostly dragged by IT and metal names. At Close, the Sensex was down 336 points at 60923, and the Nifty was down 88 points at 18178. Weak global cues triggered selling pressure for the third day in a row, while for one more time bears took the aggressive stance near the 18400 resistance level.
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz79zz7mEy3
20 Oct
How Weekly Banknifty Options Strategy Works !!!!
Banknifty options on a weekly basis were first introduced a few years back and have become quite popular among traders. The idea was to encourage more traders in the Nifty to give greater depth and to ensure that risk is reduced with lower time to maturity. In the last couple of years, the Nifty weekly bank options have been attracting interest from traders and from retail investors as a low-cost method of trading the Banknifty options. Let us look at some Banknifty trading techniques and how to trade in banknifty weekly options. Let us also look at the best banknifty trading strategy in the current market.
How traders can profit from the use of Weekly Banknifty options?
Unlike the normal Banknifty options that mature on the last Thursday of every month, the Banknifty options have a weekly maturity. Of course, they have a similar lot size for trading consisting of 40 units per lot and the weekly options will mature on the last Thursday of every week. At any point of time, there will 7 weekly options that will be open for trading. Here is how traders can benefit from the use of Weekly Banknifty options.
Weekly banknifty options can be used as a better hedge against short term even risk. Let us understand this point. For example, if there is a Fed meet on Tuesday where the Fed is expected to announce a tapering of its bond buying policy. In that case, the weekly options expiring in that week will react a lot more compared to the monthly option as the context is more immediate. Thus, these weekly banknifty options give the opportunity to hedge risk in a more immediate perspective.
From an exchange perspective and from the trader’s perspective, the weekly options are likely to increase the volumes of trading in the Bank Nifty. For a very long time, the trading and volumes were concentrated largely on the Nifty alone. This weekly option will give an opportunity to expand the gamut to Banknifty options too. That will be an additional hedging tool.
Historically, banknifty has seen twice the volatility of the Nifty and hence hedging becomes a little more complicated. Since the Banknifty is closely related to the ups and downs of the financial system in India and the world, any news tends to get transmitted rapidly. A weekly option on the Banknifty will be able to capture these kinds of volatility much better as the short-term movements will be captured more effectively.
The lower pricing of these options, considering their shorter expiry, will enable traders to profitably create hybrids like bull call spreads, bear put spreads, straddles and strangles. Also, one can create strangles around key events for a short period of time thus reducing the risk and making your position less vulnerable to the vagaries of the market.
Traders looking at calendar spreads can look at much shorter spreads with more precise and granular positioning. Based on event timetable and news flows, one can more precisely define a spread between two banknifty weekly contracts to profit from the spread.
Weekly banknifty options are a big invitation for the retail investors to also profitably participating in selling options. Normally, due to higher margin requirements and higher risk entailed, the retail is out of selling options. That is mostly done by institutions and proprietary desks. Thu retail investors lose out on an opportunity to earn regular income. In banknifty options, the risk is much lower and hence writing options can be done with limited risk. This opens a new avenue for them.
Most retail traders had issues with the futures contracts after the minimum lot size was hiked from Rs.2 lakhs to Rs.5 lakhs. Now the index contract value is in the range of Rs.7 lakhs to Rs.10 lakhs. This has led to retail investors preferring options over futures to reduce the margin payable. With weekly options, this advantage gets more underscored.
20 Oct
6800 RS PROFIT BOOKED ON TODAY`S CALLS
FOR TRADE ON TOMORROW`S OPTION/FUTURE CALLS WHATS APP ON 9039000614
BANKNIFTY 39300 PUT ACHIEVED FIRST TARGET 245 BUYING FROM 190 ( PROFIT OF RS 1100 )
NIFTY FUTURE CALL ACHIEVED FIRST TARGET 18460 BUYING FROM 18415 ( PROFIT OF RS 2250 )
BANKNIFTY FUTURE ACHIEVED TARGET 39728 BUYING FROM 39590 ( PROFIT OF RS 3450 )
NET PROFIT OF RS 6800
20 Oct
7250 PROFIT BOOKED IN NIFTY BANKNIFTY FUTURE CALLS
FOR OPTION CALL-PUT TRADING TIPS CALL ON 7772909587
NIFTY FUTURE ACHIEVED TARGET @ 18460 BUYING GIVEN FROM 18415
BOOKED PROFIT OF 2250
BANK NIFTY ACHIEVED TARGET @ 39790 BUYING CALL GIVEN FROM 39590 BOOKED PROFIT OF 5000
20 Oct
OPTION CALL PUT TIPS ROCKSSS
TIPS GIVEN IN TODAY`S POST TO CHECK VISIT http://niftytipsniftylevels.blogspot.com/2021/10/blog-post_20.html
BANKNIFTY 39300 21 OCT PUT ACHIEVED 1ST TARGET 250 BUY GIVEN @ 190 PROFIT OF 1500
INDIACEM 220 CALL ACHIEVED 1ST TARGET 6.5 BUY GIVEN @ 4 PROFIT OF 7250
NIFTY 18500 CALL ACHIEVED 1ST TARGET 74 BUY GIVEN @ 45 PROFIT OF 1450
NET PROFIT 10200
FOR MORE DETAILS WHATSAPP ON 9039542248
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz79pZT8hGe
20 Oct
What is Option Chain
For live market option cal-put tips ping me on 7772909587
An Option Chain Chart is a listing of Call and Put Options available for an underlying for a specific expiration period. The listing includes information on premium, volume, Open Interest etc., for different strike prices.
Options Type: Options are of two types; Call and Put. A Call Option is a contract that gives you the right but not the obligation to buy the underlying at a specified price and within the expiration date of the Option. Please remember the contract gives you the right but it is not mandatory for you to buy the underlying. A Put Option, on the other hand, is a contract that gives you the right but not the obligation to sell the underlying at a specified price and within the expiration date of the Option. Here again, the contract gives you the right but it is not mandatory for you to sell the underlying.
Basics of Option call put
In-The-Money (ITM): A call option is in ITM if its strike price is less than the current market price of the underlying asset. A put option is ITM if its strike price is greater than the current market price` of the underlying asset.
At-The-Money (ATM): When the strike price of a Call or Put option is equal to the current market price of the underlying asset then it is in ATM.
Over-The-Money (OTM): A call option is OTM if the strike price is greater than the current market price of the underlying asset. A put option is OTM if the strike price is less than the current market price of the underlying asset.
OPTION CALL PUT TIPS FOR 20 SEP 2021
BUY 2 LOTS BANKNIFTY 39300 21 OCT PUT @ 190 TARGET 250/350
BUY 1 LOT INDIACEM 220 CALL @ 4 TARGET 6.5
BUY 1 LOT NIFTY 18500 CALL @ 45 TARGET 74-75
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz79oPXP8o3
19 Oct
NIFTY PREDICTION & OPTION CALL PUT TIPS FOR TOMORROW 20 OCT 2021
After hitting fresh lifetime time high indices came down & closed in red. Sensex and Nifty turned red with minutes left before the closing bell. Nifty was nearing 18400 while Sensex was down below 61700. After having touched fresh highs above 40,000, Bank Nifty index has slipped into the red to now trade at 39,682. Bandhan Bank was the top laggard on the index, falling more than 4%. Sensex and Nifty scaled fresh all-time highs on 19 October 2021 morning as D-Street continued to sit in the firm grip on bulls for the eighth consecutive trading session. Sensex touched a record high of 62201 while Nifty scaled 18604 for the first time ever. Banknifty reaches a 52-week high of 40011 on 19 October 2021 as bank stock rallied higher. The banking index was led by gains in ICICI Bank, HDFC Bank, IndusInd Bank and Kotak Mahindra Bank.
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz79jxq5RwU
04 Oct
30000 PROFIT BOOKED IN TODAY`S STOCK FUTURE CALLS
FOR SUCH MORE LIVE MARKET CALLS JOIN NOW ON WHATSAPP 7772909587
HAVELLS FUT BOTH TARGET ACHIEVED 1380/1390 BUYING CALL GIVEN FROM 1370 BOOKED PROFIT OF 15000
VOLTAS FUT BOTH TARGET ACHIEVED @1227/1237 BUYING GIVEN FROM 1217 BOOKED PROFIT OF 15000
BUYING CALL GIVEN IN TODAY`S POST??
https://beststockfuturecalls.blogspot.com/2021/10/intraday-best-live-market-trading-tips.html
04 Oct
NIFTY PREDICTION FOR TOMORROW 05 OCT 2021 OPTION CALL PUT TIPS ROCKSSS
TIPS GIVEN IN TODAY`S POST TO CHECK VISIT http://niftytipsniftylevels.blogspot.com/2021/10/blog-post_4.html
NIFTY 17800 7 OCT CALL ACHIEVED TARGET 70 BUY GIVEN @ 40 PROFIT OF 1500
IEX 720 CALL ACHIEVED TARGET 17 BUY GIVEN @ 15 PROFIT OF 2500
ULTRACEMCO 8000 CALL ACHIEVED TARGET 185 BUY GIVEN @ 150 PROFIT OF 3500
NET PROFIT 7500
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz78KL891aN
25 Sep
NIFTY PREDICTION FOR NEXT WEEK 27 SEP TO 1 OCT 2021 Read more: http://niftytipsniftylevels.blogspot
Monday morning, the global screen was extremely terrible and in line with SGX Nifty, we started the week around the 17450 mark. Surprisingly, after the initial hiccup, we witnessed a v-shaped recovery not only to erased losses but also to trade in the green above 17600. However, it could not decouple itself from the global peers for a long time as the markets took a U-turn post the mid-session, to finally sneak below 17400 on a closing basis.After few days’ of hammering, we were seeing some relief across the globe early in the Tuesday morning. In line with this, our markets too opened slightly higher. However post the initial hour, the selling once again reinforced across the board, resulted in a sharp decline towards the 17350 mark. Fortunately, the bears exhausted a bit there and its counterparty took the charge from thereon to pull the markets higher. In fact, the buying momentum accelerated as the day progressed to eventually conclude the session with nearly a percent gains by reclaiming 17550.We had a flat to positive start on Wednesday in line with mixed global cues. However during the remaining part of the session, the index did nothing as it literally kept vacillating within a slender range with no clear direction as well as momentum. Eventually Nifty ended tad below 17550 with negligible losses. Global markets have seen a relief rally after some bumpy rides recently and this has brought back optimism in our market as well. We started the thurday with a decent gap up owing to favourable global cues. In fact as the day progressed, the momentum kept accelerating across the board to eventually register a new high convincingly beyond the 17800 mark.Taking cues from global peers amid lingering concerns about China Evergrande, Indian indices pared early gains even as they closed higher on Friday. Scripting a record, Sensex rose 163 points or 0.27% to end the week at 60048, while the Nifty was up 30 points at 17853.
NIFTY: A STRONG SUPPORT WILL BE @ 17000; STRONG RESISTANCE LEVEL SEEN @ 17500
Nifty closed the week at 17850 zone with gains of one & half percent on weekly basis and formed a bullish candle on the weekly chart for a second consecutive week. For upcoming session, index has shifted its support zone to 17750-17650, so any dip near mentioned support zone will be again fresh buying opportunity with keeping stop out level below 17650 zone & if said levels are held we may see the index march towards 18k mark, resistance is still placed around 17900-18,000 zone where traders can lock some of their long gains.
TECHNICALLY SPEAKING.
Crossing the 60k mark is another milestone for the market. We could see many more positive surprises from the market in the next one-two years, as we are entering into a positive upcycle of earnings trajectory. The overall market trajectory continues to be positive, and dips should be utilized to build long-term positions in quality companies for more sustainable returns. A quality theme is back in focus, and we continue to see the broader market doing well, as the visibility on broad-based earnings is still intact. A fully functional economy over the upcoming festival season and the sustenance of earnings momentum in Q2 FY22 are the near-term triggers for the market. The market witnessed some volatile movements after Nifty was able to breach the level of 17,850. Our research shows sustaining above 17850, we expect the market to gain momentum, leading to an upside projection till 18,000 level. We have observed the momentum indicators like RSI and MACD to stay positive and market breadth to improve, further strengthening a short-term bullish outlook.
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz77S3kXkW5
17 Sep
NIFTY PREDICTION FOR NEXT WEEK 20 SEP TO 24 SEP 2021
After an extended weekend, Nifty started the week on a flat note, but it witnessed some selling pressure in the first hour of trade. As the index entered sub-17300 level, some buying interest was seen and the index recovered much of the losses and consolidated to end with a marginal loss at 17350. Nifty started the tuesday on a positive note and marked a new high of 17438. However, it failed to show a follow up move and gave up some of the gains to end below 17400. We had a flat opening on Wednesday in line with mixed global cues. Unlike previous sessions, this time Nifty picked up the momentum right from the word go and as the day progressed, it just kept accelerating. In this course of action, Nifty went on to reach yet another milestone of 17500. Nifty started the Thursday on a positive note and kept the momentum going to add another 100 points to the ongoing rally and end well above 17600. Market benchmarks the Sensex and the Nifty snapped their 3-day winning run on September 17 on Friday as investors booked profit after a stellar record-setting spree in the market. Sensex closed 125 points,lower at 59015 while the Nifty finished the week at 17585, down 44 points.
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz76ixtZAti
15 Sep
Nifty Outlook For today
Despite a bullish opening, market closed flat with a positive bias on Tuesday amid mixed sentiment among global peers. India’s retail inflation softened to 5.3% in August, staying within RBI’s comfort zone which was led by lower food inflation. However, the wholesale price inflation accelerated to 11.39%, snapping the two-month easing trend owing to non-food articles. Global markets traded cautiously ahead of the US consumer price index to be released today. The day belonged to the Nifty Media index which has been underperforming other sectoral indices. The huge move today in ZEE Entertainment Enterprises fired up the media index as gains seen in other stocks looked pale in comparison. The broader markets witnessed profit-booking today in stocks that have seen a big run-up in recent times. The Sensex closed 69 points, up at 58247 while the Nifty finished with a gain of 25 points, at 17380.
15 Apr
NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 15-04-2021 Read more: http://niftytipsniftylevels.blogspot
On Tuesday 13 april 2021, the market saw a partial reversal of the speculative unwinding witnessed on Monday. The bulls regained the momentum in afternoon trade, as the see-saw battle between the virus and vaccine tilted towards the latter with the approval of a third vaccine with hope of many more to come. The Sensex advanced 660 points to close at 48544. The index traded in 852-point range during the day. The Nifty rose 194 points to 14504.
08 Apr
BULLS BATTLE ; CRUCIAL RESISTANCE NEAR 15000
NIFTY FUTURE GIVEN IN TODAY MORNING POST TO CHECK VISIT http://niftytipsniftylevels.blogspot.com/2021/04/nifty-future-1st-target-achieved.html
NIFTY FUTURE OUR 1ST TARGET 15030 BUY GIVEN @ 15000 PROFIT OF 2250
Market indices, Sensex and Nifty closed off day`s high on Thursday led by broad-based gains across sectors with metals and IT lifting the benchmarks the most. Asian markets mostly rose with traders keeping tabs on the progress of US President Joe Biden`s huge infrastructure plan. At close, the Sensex was up 84 points at 49746, and the Nifty was up 54 points at 14873. Indian markets opened on a positive note following upbeat Asian market and positive overnight global cues as the US Federal Reserve released minutes from its March meeting during which it kept its accommodative policy in place. During the afternoon session, aggressive buying in metal, basic materials, IT, pharma and consumer durables stocks was seen. Traders took note of the World Bank president’s (David Malpass`) statement that there is faster global growth driven primarily by the US, China and India. On sectoral front, metals and IT sector led the rally today.
23 Feb
5000 PROFIT IN OPTION CALLS
NIFTY 14900 CALL ACHIEVED TARGET @ 52 CAL GIVEN FROM 42
BOOKED PROFIT OF 1500
BANKNIFTY 36500 CALL ACHIEVED TARGET @ 98 CALL GIVEN FROM 80
BOOKED PROFIT OF 900
MARUTI 7000 PUT ACHIEVED TARGET @110 CALL GIVEN FROM 84
BOOKED PROFIT OF 2600
FOR BEST INTRADAY STOCK FUTURE CALLS WHATSAPP ON 7772909587
23 Feb
HINDALCO OPTION STRATEGY ROCKSSS
STRATEGY GIVEN IN 9TH FEB POST TO CHECK VISIT http://optioncallputtradingtips.blogspot.com/2021/02/hindalco-option-strategy-for-feb-2021.html
"OPTION STRATEGY HINDALCO 320 CALL BOOK PROFIT NEAR 8.7 NOW BUY GIVEN @3.5"
PROFIT OF 22360
TO GET MORE STRANGLE STRATEGY WHATSAPP ON 9039542248
23 Feb
MARUTI IN REVERSE GEAR ; NIFTY OUTLOOK FOR 24-02-2021
"MARUTI 7000 PUT GIVEN IN PREVIOUS POST TO CHECK VISIT http://niftytipsniftylevels.blogspot.com/2021/02/option-call-put-tips-for-23-feb-2021.html TARGET 120 ACHIEVED BUY GIVEN @ 84 PROFIT OF 3600"
TO GET SUCH OPTION CALL PUT TIPS WHATSAPP ON 9039542248
The markets saw high volatility all through the day on 23 February and ended almost flat. At close, The Sensex was up 7 points at 49751, whereas the Nifty was up 32 points at 14707. The Nifty gave up most of its gains as the day progressed. The weakness continues to remain in the short term and we can expect the index to slide further to levels closer to 14500. Any rally up can be used to short this market for lower targets. The upside is capped at 14800 -15000 and until we do not get past that comfortably, the markets will remain bearish.
More about intraday tips Whatsapp On 9039542248
Resistance: 14800, 15000
Support: 14600, 14500
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz6nIPPXgy1
08 Feb
SAIL OPTION STRATEGY CALL OPTION BOOK PROFIT
SAIL STRATEGY GIVEN ON 1 FEB 2021 TO CHECK VISIT http://optioncallputtradingtips.blogspot.com/2021/02/sail-option-strategy-for-budget-2021.html
SAIL 70 CALL BOOK PROFIT @ 1.4 BUY GIVEN @ 0.90
9500 PROFIT
TO GET MORE STRANGLE STRATEGY WHATSAPP ON 9039542248
08 Feb
NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 9 FEB 2021
Domestic equity markets began the day’s trade at fresh all-time highs. Sensex reached 51,326 for the first time ever while nifty was trading above 15,000. Mahindra & Mahindra was the top Sensex gainer, surging 7%, followed by SBI, Axis Bank, and ICICI Bank. NTPC and Bajaj Auto were the only two Sensex stocks in the red. Volatility was up 2.69% even though stock markets were surging higher. To boost the pandemic-hit economy, the government of India is committed to higher capital expenditure not just in the coming fiscal year but over the next three years.a sharp hike in capex in the recently announced Union Budget reflects the government’s economic strategy of rebuilding battered demand while ensuring that the supply side is expanded enough to move in tandem. The government has budgeted capital expenditure at Rs 5.45 lakh crore for FY22, which is 26.2% higher than the revised estimates of this fiscal year. The sensex touched a high of 51523 and a low of 51146 to finally settle at 51348. Nifty was up 191 points at 15115.
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz6lslPEZws
08 Jan
STOCKS PREDICTION FOR 11 JAN 2021
BUY 2 LOTS HDFCBANK 1442 TGT 1458/1472 SL 1420
SELL 2 LOTS HDFCBANK 1439 TGT 1423/1409 SL 1461
This week market was move higher since hitting multi-year lows in march 2020.In this week sensex jumped 1.90% while nifty clocked a gain of 2.35 %.After the two consecutive sessions of losses, the indian equity market resumed its upward march with hefty gains on today as investors lapped up shares of it, auto and mid-caps.today nifty hit its fresh record high of 14367 while the sensex hit a record high of 48854 in intraday trade.Eventually, the sensex closed 689 points up at 48782 & nifty settled 210 points up at 14347.
In this week IT & auto stocks pulled their weight today ahead of tcs earnings as bulls went berserk, lifted by 1.5 % buoyed by positive global cues. Barring metal down 0.91% & telecom down 0.49%, all sectoral indices closed with gains, with it, auto and teck indices jumping over 3 %.Including asian paints, hcl tech, infosys, mahindra & mahindra, maruti suzuki, sun pharma, tcs, tech mahindra and ultratech cement, hit their 52-week highs & volume spike seen stocks such as torrent power, maruti suzuki, zee entertainment, sbi life insurance and sun pharma.this week maruti suzuki, wipro were among those who witnessed long build-up while idfc first bank, mahindra & mahindra financial services and vedanta were among the stocks that witnessed short build.
FOR GETTING LIVE MARKET OPTION TRADING TIPS CALL OR WHATSAPP ON 7772909587
INFY STRATEGY GIVEN IN 5 JAN POST FOR QUARTERLY RESULT TO CHECK VISIT http://optioncallputtradingtips.blogspot.com/2021/01/infy-result-ahead-plain-vanilla.html
INFY 1360 CALL ROCKS BOOK PROFIT @ 36 BUY GIVEN @ 28
PROFIT OF 4800
08 Jan
OPTION CALL PUT TIPS ROCKS
OPTION CALL PUT TIPS GIVEN IN TODAY`S POST TO CHECK VISIT http://niftytipsniftylevels.blogspot.com/2021/01/option-call-put-tips-for-08-jan-2021.html
COALINDIA 142.5 CALL ROCKS HOPE U HAVE BOOKED PROFIT @ 4 BUY GIVEN @ 3.3 PROFIT OF 2940
NIFTY 14300 14 JAN CALL ROCKS HOPE U HAVE BOOKED PROFIT @ 110 BUY GIVEN @ 75 PROFIT OF 5250
BANKNIFTY 32000 14 JAN PUT ROCKS HOPE U HAVE BOOKED PROFIT @ 330 BUY GIVEN @ 290 PROFIT OF 2000
NTPC 103 CALL ROCKS HOPE U HAVE BOOKED PROFIT @ 2.95 BUY GIVEN @ 2 PROFIT OF 5415
15605 PROFIT IN TODAY`S OPTION
GET LIVE OPTION CALL PUT TIPS VIA WHATSAPP TO GET TIPS WHATSAPP ON 9039542248
74055 PROFIT IN THIS WEEK OPTION CALLPUT TIPS ????
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz6ixP3eouX
05 Jan
CANBK ROCKSSS WITH 7560 PROFIT
STRATEGY GIVEN IN TODAY`S POST
https://beststockfuturecalls.blogspot.com/2021/01/canbk-plain-vanilla-strategy-for-jan-21.html
CANBK 125 PUT ACHIEVED TARGET
HOPE YOU HAVE BOOKED PROFIT @ 5
CALL GIVEN FROM 3.6
PROFIT OF 7560
RISK:: RETURN
19440::27000
05 Jan
OPTION TIPS GIVEN FOR THIS WEEK ROCKS !!!
VISIT http://optioncallputtradingtips.blogspot.com/2021/01/option-tips-for-1-january-2021.html
TCS 3100 CALL BOOKED PROFIT @ 100 BUY GIVEN @ 38 PROFIT OF 18600
INFY 1340 CALL BOOKED PROFIT @ 36 BUY GIVEN @ 26.5 PROFIT OF 5700
NIFTY 14100 7 JAN CALL BOOKED PROFIT @ 100 BUY GIVEN @ 80 PROFIT OF 3000
NET PROFIT 27300
INVESTMENT :: RETURN
39,300 :: 66,600
05 Jan
NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 06 JAN 2021
New day new high!!! One more bullish session and nifty managed to close Tuesday 5 January 2021 on fresh highs at 14200 with gains of half a percent and formed a bullish candle on daily chart.Now index has shifted its base to 14100 zone and overall base is still at 14k mark holding above said levels a buy on dip structure is still intact, on the other hand index managed to breach 14200 zone decisively its suggest that ongoing move can push index to 14250-14350 zone in near term.
Read more: http://niftytipsniftylevels.blogspot.com/2021/01/nifty-outlook-option-call-put-tips-for.html#ixzz6ifwdoHEZ
01 Jan
NIFTY ENDED IN GREEN ON 1ST DAY OF "NEW YEAR"
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With a hope that 2021 will be a year of economic recovery,today market crossed all-time highs 14k. Today sensex was up 117.65 points at 47868 and the nifty was up 36 points at 14018. Technology and pharma topped the gainers` list, rising 55 % & 60 % respectively. On first day of year banking sector was the worst hit, down nearly 3 % banknifty fell 30% & private bank declined 3 %. Stocks across sectors cheered with mid & small caps at the forefront rose with 0.9 to 1.2 %. Among midcaps, adani green energy, adani enterprises, l&t infotech, info edge (india) and tata consumer products were the biggest gainers, while bank of india, rbl bank, canara bank, union bank of india and future retail were the top losers. Tcs led the rally with the auto numbers providing the momentum as a number of companies announced price hikes today.the combined effect of foreign inflows and real earnings growth can keep the market rallying going forward.
TOP GAINERS-ADANI PORTS, ITC, TCS, M&M AND SBIN
TOP LOSERS- ICICI BANK, HINDALCO, HDFC BANK & TITAN COMPANY
01 Jan
NIFTY WEEKLY PREDICTION & NIFTY TIPS FOR 4 JAN TO 8 JAN 2021
Monday morning, the global set up was just perfect to have a head start in the last week of the current calendar year. Our markets opened week higher at fresh record highs as indicated by the Nifty and then resumed its upward trajectory after a brief pause. Eventually, the Nifty closed at fresh record high, tad below 13900. For the second consecutive session of the week on Tuesday, our markets opened with an upside gap to hit a new milestone of 13900. There was some hint of profit booking witnessed in the first half; but market managed to stabilize at intraday supports and then resumed upward bias in the concluding hour to end with nearly half a percent gains. Market continues with its gap up opening mode and Wednesday morning too, the global set up was ideal to start the day marginally below 14000. Similar to the previous session, the market cooled off a bit in the first half and had a short stint of profit booking to test intraday supports. As usual, the buying resumed in the latter half to add another three tenths of a percent to the bulls’ kitty despite banking sulking a bit. We had a flat opening on Thursday in the wake of muted global cues. During the remaining part of the session, there was not much action seen in indices, which is quite normal on the final session of the calendar year. But in the midst of this, Nifty reached yet another milestone of 14000 to make it a historical as well as memorable year ending for the bulls.Indian markets are relentlessly scaling new highs with Nifty-50 breaching the 14,000 level and Sensex close to the 48000 mark. Global cues have remained positive for most Asian markets with MSCI Emerging Markets reporting 2.9% gains this week. Nifty and Sensex have gained 1.7% each this week. The market ended the first day of 2021 on the positive note with Nifty comfortably settle above 14000 level.
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz6iIU1jXOg
OPTION TIPS GIVEN IN TODAY MORNING POST TO CHECK VISIT http://niftytipsniftylevels.blogspot.com/2020/12/option-call-put-tips-for-15-dec-2020.html
POWERGRID 185 PUT ROCKS ACHIEVED TARGET 4.7 BUY GIVEN @ 4 PROFIT OF 2800
NIFTY 13000 31 DEC PUT ROCKS ACHIEVED TARGET 65 BUY GIVEN @ 55 PROFIT OF 1500
BANKNIFTY 30000 17 DEC PUT ROCKS ACHIEVED TARGET 155 BUY GIVEN @ 80 PROFIT OF 3750
PROFIT 8050
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Read more: http://niftytipsniftylevels.blogspot.com/#ixzz6ggkL2KlC
13 Oct
NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 13 OCT 2020
To sustain the market trend, a lot will depend on the size and effectiveness of the stimulus. Cash voucher and advance scheme, sops to government employees, failed to cheer the market as it did not provide the required boost to the economy as expected. It is anticipated that there will be more measures revealed in the future. The market will look forward, with high hopes on Q2 results and an end to the moratorium saga. IT, Banks and FMCG will be the sectors under focus, in the near-term.
28 Sep
NO MONDAY BLUES FOR THE BULLS FOR INTRADAY TRADING TIPS
Bulls was in control on September 28 tracking positive global and local factors. & The action was seen in the public sector, power, auto, banks, and oil & gas with 3% up. Last Thursday Market witnessed volatile expiry of September f&o where nifty fell by about 4 % but there were no today blues. The markets kept the upward momentum on for the entire day. However, the level to watch out for is 11300-11350 but there is always a possibility of a U-turn from the current levels and the Nifty might attempt to go and test the 10750 level. Today Sensex was up 592 points at 37981 and Nifty was up 177 points at 11227. Today indusind Bank, Bajaj Finance, Axis Bank, Tata Motors and Power Grid were among major gainers while losers were Wipro, HUL, Nestle and Infosys.
TOP GAINERS-INDUSINDBANK,AXISBANK,TATAMOTORS
TOP LOSERS-WIPRO, HINDUNILVR, INFY
28 Sep
NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 29 SEP 2020
Strong global cues lead Indian market higher on the 1st day of the week. Market ended higher for the second day in a row on September 28 on the back of buying seen across the sectors. At close, the Sensex was up 593 points at 37981, and the Nifty was up 177 points at 11227. In last two days, market recovered 50% of losses seen in previous 6 sessions.
The markets kept the upward momentum on for the entire day & we expect it to continue in the coming session. However, the level to watch out for nifty is 11250-11300. We need to get past and close above that price zone. That would signal that an intermediate bottom has been made and we have entered into an uptrend. Until then, there is always a possibility of a U-turn from the current levels and the Nifty might attempt to go and test the 11000 level.
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Resistance: 11250, 11300, 11350
Support: 11200, 11150, 11100
Read more: http://niftytipsniftylevels.blogspot.com/2020/09/nifty-outlook-option-call-put-tips-for_28.html#ixzz6ZL2xwK7O
26 Sep
HOW TO TRADE OPTIONS IN BEAR MARKET
Bear markets reflect slowing economic growth and corporate financial problems. Fearful traders panic and dump their holdings at a loss, which pushes stock prices down further and ignites a fresh round of selling. Investors can use several bear-option strategies to profit from a market-wide selling frenzy.
Buying put options is a straightforward bear strategy with low risk/high reward potential. The goal is for the stock price to drop below the put option strike price so the option is in the money prior to expiration. The amount of risk is limited to the option price plus the commission. For example, a stock is trading at 45rs a share. You buy an out-of-the-money put with a strike price of 40rs for 3rs multiplied by the 100 stock shares one option controls, for a total cost of 300rs. You profit when the stock trades below 40rs a share before the option expires.
Trading bear put spreads limits your loss while providing a good return. The trade works by buying an in-the-money put and simultaneously selling an out-of-the-money put. The maximum profit is reached when the stock closes below the out-of-the-money put prior to expiration. The maximum loss is the amount you pay to enter the trade plus commission.
Looking at another example, a stock is trading at 28rs a share. You buy an in-the-money put with a strike price of 30rs for 20rs and simultaneously sell an out-of-the-money put with a strike price of 25rs for 17rs, for a net debit of 300rs (20rs-17rs=3rs x 100=300rs). If the stock price remains below the 25rs strike price of the short put at expiration, your profit is the difference between the strike prices minus the cost to enter the trade: Strike prices of 30rs – 25rs = 5rs x 100 = 500rs minus the net debit of 300rs = 200rs profit less commission.
Collect money upfront by trading a low-risk bear call spread. The profit is the premium paid by buying out-of-the-money calls while simultaneously selling in-the-money calls. The out-of-the-money calls act as insurance in case the market moves against you and limits your loss to the difference between the strike prices less commission.
For example, a stock is trading at 27rs a share. You buy one 30rs out-of-the-money call for 100rs and sell one 25rs in-the-money call for 200rs for a net credit of 100rs less commission. As long as the stock price remains below the 30rs higher strike price, you have a profit.
TIP
One option controls 100 stock shares, so multiply the put or call option price times 100 to get the total buy or sell cost.
WARNING
Bear markets have brief rallying periods before continuing their downward march. Monitor your option trades and have an exit strategy in place.
26 Sep
OPTION CALL PUT TIPS FOR 28 SEP 2020
BUY 1 LOT BANKBARODA 39 PUT @ 1.2 TARGET 2
BUY 1 LOT HINDALCO 180 CALL @ 3 TARGET 4
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Read more: http://niftytipsniftylevels.blogspot.com/#ixzz6Z8yaMaDf
22 Sep
INFOSYS ; THE GREEN ISLAND IN THE RED SEA
Today nifty ended more than 2% down. Sensex closed 812 points down at 38034 while nifty ended 254 points lower at 11250.it was in sync with global cues which turned negative following a surge in infections in various countries including in europe. Today stocks that touched their 52-week highs were , dr. Reddy`s laboratories, hcl technologie infosys, mindtree, wipro and natco pharma .
The market has broken the support of 11,300 on a closing basis and this is definitely an alarming situation.toaday hcl tech, zee ent., infosys, kotak bank and tcs were among top gainers, while powergrid, bajaj auto, tata motors, nestle india and gail were trading in red.fears of another lockdown in the uk created further scare here as investors booked profits in several stocks which have rallied sharply over the last couple of weeks.
18 Sep
NIFTY WEEKLY OUTLOOK & REPORT NEXT WEEK 21 SEP TO 25 SEP 2020
The global set up was just ideal Monday morning to have a head start for the new trading week. We began convincingly above 11500 and then slipped into a consolidation mode for the major part of the session. However post the midsession, the nifty took a nosedive and within a blink of an eye, we not only pare down gains but also sneaked well inside the negative territory. Fortunately a modest recovery at the end reduced the damage on a closing basis. The overnight rally in US markets had a rub off effect on almost all major Asian bourses. Hence, we too started the Tuesday session with a gap up opening despite Monday’s shaky session. Subsequently, similar to recent behaviour, index went into a consolidation mode and kept flirting around the 11500 mark. However from nowhere, a strong buying emerged in the banking conglomerates at the stroke of the penultimate hour. This pushed Nifty higher to end convincingly above 11500. We had a flat to positive start Wednesday despite Nifty indicating a sluggish start early in the morning. Similar to recent trend, the index consolidated in a small range throughout the first half. However, post the midsession, some strong buying emerged in banking as well as IT counters. This resulted into Nifty surpassing the intraday hurdle of 11570 to reclaim the 11600 mark. Thursday morning, the global markets looked nervous and hence, we were about to open lower after Wednesday`s smart move. The Nifty was indicating a start below 11500 with more than 100 points cut; but fortunately, Nifty did not open in line with what nifty was indicating. In fact, post the initial hiccup, markets stabilized and recovered a bit. However, the global weakness eventually weighed down heavily and we corrected towards 11500 around the midpoint. Post this, some volatile swings were witnessed in a range of 50 points to eventually conclude the weekly expiry tad above the 11500 mark.
NIFTY: A STRONG SUPPORT WILL BE @ 11300; STRONG RESISTANCE LEVEL SEEN @11800
Indices seemed to have lost clear direction and are clearly trapped in a range. This week, we witnessed strong sell off from higher levels, it was almost the reverse action. With this week late surge in banking stocks, both Nifty as well as BankNifty are interestingly poised. For Nifty, if 11600 is taken out, we would see some extension towards 11700 - 11800 levels. On the flipside, 11400 followed by 11300 are to be seen as key supports.
TECHNICALLY SPEAKING.
Although, this week weakness in our market has to do with the global cues, we are not surprised with it. Despite a strong tail end surge of this week, we avoided longs and had mentioned the configuration of the `Bearish Wolfe Wave` pattern on the weekly chart. The observation has certainly proved its significance this week; but honestly speaking, this week correction was nowhere close to a sell-off, rather can only be interpreted as a small profit taking. But having said that we continue to remain cautious and still do not expect the Nifty to surpass the sturdy wall of 11650-11700 soon. Going forward, 11450-11350 would be seen as crucial support and a move below this would trigger some decent correction thereafter. Since US Dollar Index and Equity markets are inversely correlated, any surge in this would lead to correction in our markets. Hence, it is important to take a note of this development as well.
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz6YOZJJmGG
18 Sep
UNDERSTANDING RISK; THE MANDATORY SKILL
RISK MANAGEMENT
Professional option call put traders use sophisticated methods because they take great care to minimize risk. We, the individual investor, have it easier. We have simple tools that allow us to measure the risk of investing with option call put. For example, there is the risk of losing (or earning) money as the days pass. Or the risk/reward possibilities that come when the underlying stock rallies (or falls).
We’ll get into topics related to risk in the days to come, but for today it is enough to understand that option call put come with built-in risk-measuring tools, collectively referred to as `the Greeks." No other investment vehicle makes it so easy to measure and mange risk.
New option call put traders often believe it is difficult to use these tools. The math may be complicated, but using the numbers is a cinch. Brokers provide the numbers and use the ones that interest us.
Individual investors usually take a little extra risk, seeking larger profits per trade. One of the topics that we`ll talk about in detail is how to measure and manage risk.
Don`t get the wrong idea. I mention risk management frequently because all successful traders understand the importance of doing so. The sad truth is that there are always inexperienced traders who don`t believe that understanding risk is important, and the vast majority of them wind up with devastated accounts. I want you to succeed, so the warnings come first. You want to begin trading with a winning, risk-conscious, mindset.
Option call put strategies are not inherently risky -- unless you, the trader, decides to make a high-risk play. Option call put strategies come with limited and defined risk, and that is beneficial to each trader.
I’ll warn you about such high-risk strategies and do my best to get you to avoid them. However, we are each our own master and we trade as we see fit. Using risk-management tools allows you to understand exactly what can go wrong with each trade -- and that means no unpleasant surprises.
STOCK VS. OPTION CALL PUT
People who invest in stocks almost never go broke because stocks seldom lose 50 to 100% of their value in a single day.
18 Sep
INFOSYS TO ACQUIRE CONSULTANCY FIRM GUIDE VISION
"BUY INFOSYS FUTURE ABOVE 1008.20 TARGET 1014.40 SL 1004"
"SELL INFOSYS FUTURE BELOW 1005.95 TARGET 999.95 SL 1009.95"
Infosys & Tcs 0.88 % are steadier growth providers for indian stock market. Infosys is leaning more towards the digital part of the economy and growth. Their digital interface vertical is growing faster than the other verticals. Infosys is our preference from the point of view of buying. At the same time, there is a headroom for appreciation as far as Infosys is concerned and that remains our preference. In this week after opening at 954.95 stock touched high of 102.95 & low of 949.75.
15 Sep
OPTION CALL PUT TIPS ROCKS
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IGL 420 CALL ROCKS ACHIEVED TARGET 10 BUY GIVEN @ 7 PROFIT 4125
HEROMOTOCO 3200 CALL ROCKS ACHIEVED TARGET 32 BUY GIVEN @ 24 PROFIT 2400
COALINDIA 125 PUT ROCKS ACHIEVED TARGET 3.6 BUY GIVEN @ 2.7 PROFIT 3330
TOTAL PROFIT 9855
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15 Sep
NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 16 SEP 2020
After a one-day hiatus, market went back to winning ways on Tuesday encouraged by easing inflation and riding on positive cues from global markets. Hopes of an early vaccine also kept the mood sanguine. European market opened with gains, supporting investor sentiments. Meanwhile, India`s retail inflation in August of 6.69% was lower than the 6.73% recorded in July, but it remains above the upper end of the RBI’s target. The Sensex rose 288, reclaiming 39000 level & closed at 39044. The Nifty advanced 82 points to 11522.
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz6Y75f6BjT
15 Sep
12450 PROFIT BOOKED IN MUTHOOT FINANCE
On Tuesday Market ended on bullish note. Tracking positive cues from Asia led by an outperformance in Banking and Pharma stocks. Today Sensex ended 0.74% higher at 39044 while the Nifty gained 0.7% at the close of trade to end at 11521. Banknifty ended with gains of 1.8%.
Banking stocks, which were responsible for the indices ending lower yesterday but outperformed the indices in today`s session. Pharma stocks were the other outperformers in today`s session. Most other sectoral indices ended flat in today`s session. The realty stocks was the top laggard, ending with losses of 0.7%. Tracking gains in index majors HDFC twins, ICICI Bank and Reliance Industries.
TOP GAINERS-CIPLA,INDUSINDBANK,UPL,AXISBANK,ICICBANK
TOP LOSERS-TITAN,MARUTI,HDFCLIFE,ITC,BPCL,COALINDIA
11 Sep
WEEKLY RBLBANK FUTURE ROCKSS??
On Friday Market ended almost unchanged resulting in gains for the week.Today Sensex and Nifty ended at nearly the same levels as of Thursday at 38854 & 11464.In stock sector IT & Realty stocks like JUBLIANT FOOD, DLF, & BRITANNIA outperformed in today`s session while Media stocks was the only ending 0.9% lower as sectoral laggard.
TOP GAINERS-WIPRO,SBIN,TECHM,TCS,HEROMOTOCO
TOP LOSERS-ZEEL,INDUSIND BANK,POWERGRID,HDFCBANK
11 Sep
IDFCFIRSTB OPTION STRATEGY FOR SEPTEMBER 2020
OPTION STRATEGY BUY 1 LOT IDFCFIRSTB 31 CALL @ 1.1 AND 28 PUT @ 0.75
11 Sep
NIFTY WEEKLY OUTLOOK & REPORT NEXT WEEK 14 SEP TO 18 SEP 2020
Nifty started trading for the week on a flat note, but it corrected in first half an hour and registered a low around the 11250 mark. It then recovered gradually and oscillated within a range throughout. An upmove in the last half an hour resulted in the index closing tad below the high point of the day with marginal gains. Tuesday Nifty started the session marginally positive yesterday and attempted a pullback move with the support of IT heavyweights. However, the bears took the charge in the latter half of the day and the index corrected sharply in the last hour to end with a loss of one third of a percent. The U.S. indices corrected sharply overnight which had a negative impact on the opening for our markets on Wednesday. Nifty opened with gap down around 11220 and it corrected gradually to sneak below the 11200 mark. However, the broader markets witnessed buying interest in the later half which led to a recovery and the Nifty recovered much of the losses to end tad below 11300, with a loss of about 40 points over Tuesday’s close. After the sharp sell-off in three trading sessions, the U.S. markets rebounded sharply which had a positive impact on our markets at opening of Thursday. Nifty opened gap up and continued the upmove towards the intraday resistance of 11450. The decline from there was bought into and the index resumed the momentum in the last hour to end the weekly expiry day around the high point with gains of one and a half percent. Friday market remained cautious about adverse news-flows of COVID-19 vaccine trials, an increase in Sino-India geopolitical tensions and a sharp sell-off in US equities. Recent data shows some up-tick in activities as suggested by e-way bills data, railway freight data and digital banking transactions, even as daily COVID-19 cases continue to increase. sensex closed week at 38854 and Nifty closed at 11464.
NIFTY: A STRONG SUPPORT WILL BE @ 11000; STRONG RESISTANCE LEVEL SEEN @11700
18 Aug
BULLS MANAGED TO SUSTAIN 11350
In today`s session market outperformed their asian peers with the benchmark indices ending at the highest point of the day. Sensex and nifty ended majorly bullish on tuesday, amid heavy buying in realty and media scrips, despite mixed global equities. Nifty ended with gains of nearly 150 points at 11385 up 1.23%. Banks were the top performers in today`s session. The banknifty ended with gains of over 2%, as did the media stocks. Realty stocks was the top sectoral gainer, ending the day`s trade with gain of 4%while pharma stocks was the only sectoral laggard, ending little changed but with a negative bias. Today april-june quarterly earnings announcements by zee entertainment enterprises, hindustan aeronautics, jk cement, uflex, gtl infrastructure. Ongc, followed by reliance industries, icici bank, m&m, infosys, titan, bajaj finance and bajaj finserv were among the top gainers. On the other hand, tata steel, powergrid, indusind bank, axis bank and sbi were among the top laggards today.
TOP GAINERS-GRASIM,JSWSTEEL,ZEEL,ICICIBK,TITAN,HDFCBK
TOP LOSERS-BPCL,TEHM,CIPLA,GAIL,IOC,BAJAJ AUTO
18 Aug
OPTION CALL PUT TIPS GIVEN IN TODAY 14-08-2020 MORNING POST
TO CHECK VISIT https://optioncallputtradingtips.blogspot.com/2020/08/option-call-put-tips-for-14-august-2020.html
BANKNIFTY 22500 20 AUG CALL ACHIEVED TARGET 220 BUY GIVEN @ 180 PROFIT OF 1000
VOLTAS 650 CALL ALMOST HIT TARGET WENT UP TO 14.9 BUY GIVEN@ 12 PROFIT OF 2900
NIFTY 11300 20 AUG PUT ACHIEVED TARGET 85/100 BUY GIVEN @ 70 PROFIT OF 3375
TATAPOWER 60 CALL BUY GIVEN @ 1.2 WENT UP TO 1.5 PROFIT 4050
JUBLFOOD 2000 CALL BUY GIVEN @ 30 WENT UP TO 34.70 PROFIT 2375
18 Aug
NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 18 AUGUST 2020
BUY NTPC 98 CALL @ 1 TARGET 2
CANBK 102.50 CALL @ 3.7 TARGET 4.5
The bulls have done very well for themselves today & closed the day above 11350 as hopes of higher government spending to help support the economy continued to lift investor sentiment. This is good news for the bulls. Market ended higher for the second consecutive day on August 18 with Nifty surpassed 11400 level during the day. At close, the Sensex was up 477 points at 38528, and the Nifty was up 138 points at 11385. Grasim was the top gainer, up 6.68% followed by Ultratech Cement and Kotak Mahindra Bank, which rallied 3.30% and 3.15% respectively.
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz6VTMdw6NB
06 Aug
NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 6 AUGUST 2020
Wednesday market ended on flat note, erasing the stellar gains made at open. Both Sensex and Nifty had topped their respective psychological levels intraday before giving in to the volatility during the session. The Sensex had hit the day`s high of 38,140 points, but fell to the low of 37551. Sensex closed at 37,663 points, down 24 points from previous close while Nifty raised 6 points to settle at 11101. Nifty opened positive but failed to hold above 11225 levels and during the day it lost all its gains by drifting towards 11050 zones. However, it witnessed some bounce from lower levels and closed the session on a flat to positive note. Global cues were also positive while gold again jumped to record highs. Positive earnings reports are driving stocks and markets around the world, and the same trend is visible in the Indian markets too. Liquidity is a major driver for the markets and it is chasing companies which are declaring stable earnings or outlook. Uncertainties remain while in the near term markets will look forward to the commentary and RBI actions at the end of the MPC meeting tomorrow.
06 Aug
NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 7 AUGUST 2020
TO GET LIVE MARKET OPTION/FUTURE/CASH/NIFTY TIPS WHATSAPP ON 9039542248
No rate cut in RBI policy brings the spark back in the market, the Indian indices ended around 1% higher from its Wednesday close. The Sensex shut shop 362 points and closed at 38025 levels while the Nifty went 98 points northward and closed at 11200 mark. Bank Nifty index scaled 132 points up and closed at 21642 levels. Indian benchmark indices came off highs but still closed out a volatile day with gains, following RBI commentary regarding interest rate outlook. Although expectations of a rate cut were there, RBI kept rates on hold, following a rise in inflation. However, it has indicated that monetary policy will remain accommodate until growth revives. We believe that if inflation remains under control, there will be further policy easing from the central bank. With this event out of the way, markets expected to turn focus back on earnings visibility and quality.
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz6UL7S5Y00
31 Jul
NIFTY WEEKLY REPORT & VIEW FOR NEXT WEEK 3 AUGUST TO 7 AUGUST 2020 Read more: http://niftytipsnifty
TO GET LIVE MARKET OPTION/FUTURE/CASH/NIFTY TIPS WHATSAPP ON 9039542248
WEEKLY RESISTANCE FOR NIFTY: 11200, 11350,11500
PIVOT POINT: 11100
WEEKLY SUPPORT FOR NIFTY: 11000, 10900, 10800
WEEKLY CHART FOR NIFTY
Read more: http://niftytipsniftylevels.blogspot.com/#ixzz6Tm9zEyNu
30 Jul
NIFTY TESTS NEGATIVE DUE TO CORONA
FOR LIVE MARKET CALLS WHATS APP ON 9039000614
NIFTY LEVELS FOR 31/07/20
NIFTY SUPPORT:-11159/11089/11019
NIFTY RESISTANCE :- 11234/11304/11374
Due to the ever increasing cases of Corona virus in the country, it is having a deep impact on the share market.The Nifty again slipped 100 point and came down from 11200 to 11100 level the Sensex also lost 335 points and closed at 37736 level. Pharma companies have given little support to the market today.Dr. Reddy`s Laboratories Limited Jumped 4% today on nse And it also broke all its 52-week record. This increase of this stock is due to a profit of Rs. 668 crore in Q-1. Lupin gained 3% and Cipla also gained 2% . SBIN shares fell below 2 percent today. The stock opened at 192 Rs. today and closed at 186 with a high of 193 . The stock opened at 192 rss today and closed at 186 with a high of 193. Mananappuram dropped by 9% while BPCL also lost 7% on nse.
30 Jul
WEAKNESS SEEN IN NIFTY ON EXPIRY DAY
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Today market had started well , but on the day of expiry, the market saw a lot of volatile business. After midday, the profit recovery dominated the market. Sensex-nifty closed in the red mark at the end of business. Nifty has closed at 11102, down by 100 points. At the same time, the sensex closed at a level of 37736 with a weakness of 335 points. Oil gas stock also saw pressure today.in today`s business, only it and pharma stocks have closed in green mark. The it stocks closed at 0.70 % & the pharma stocks gained 3% led by dr. Reddy`s laboratories, which ended at an all-time high with gains of 4.6%.there has been a strong sell-off in bank shares. Bank nifty has closed at 21646, down nearly 2% today. At the same time, the auto stocks declined by 0.58 %, media stocks by 2.3%,metal stocks by 1.2 % & realty stocks by 0.08 %. Tomorrow jindalsteel, ioc, nelco, sunpharma, sbi,upl& tatachemical will announce their result.
TOP GAINERS-DR.REDDY,WIPRO,VEDL,MARUTI,INFY
TOP LOSERS-BPCL,IOC,HDFC,AXISBK,ONGC,GRASIM
30 Jul
NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 31 JULY 2020
F&O July series expired in the red due to selling in the financial & energy stocks however, pharma and IT positive for the day. The Sensex slipped 335 points to settle at 37736 levels. Nifty ended at 11102 down 101 points. Global markets faded as a status quo in policy by the US Fed Reserve failed to offset tepid business outlook and resurgence in virus cases around the world. Investors will be looking at commentary emerging from today’s meeting between the PM and key economic regulators. Stock specific action expected to continue.
29 Jul
NIFTY DECLINES BEFORE JULY EXPIRY
There was a drop in the market before the July expiry. Markets reversed most of Tuesday`s gains ending near the lowest point of the day dragged lower by heavyweight Reliance Industries down 4%.Nifty fallen 98 points to close at 11203. At the same time, the Sensex fallen 422 points to close at 38071. Bank Nifty fallen 29 points to close at 22076.Today, there was buying in pharma and metal stocks. Pharma stocks outperformed in today`s trade, led by gains in Dr. Reddy`s Laboratories up 6%. The same, auto, oil and gas stocks were sold. While TCS, L&T were supporting Nifty, the bank shares also showed strength, with ICICI Bk, Axis Bank, SBI contributing to the boom.
TOP GAINERS-DRREDDY,TATASTEEL,GRASIM,INFRATEL
TOP LOSERS-RELIANCE,M&M,HDFCBK,MARUTI,TECHM
29 Jul
NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 30 JULY 2020
NIFTY 11300 PUT ACHIEVED TARGET 90 BUY GIVEN 50 PROFIT OF 3000
Nifty failed to continue its bullish momentum of the last session and witnessed selling pressure at higher levels. Markets traded volatile and settled with a cut of nearly 1%. After the initial uptick, nifty inched gradually lower as participants preferred to book some profit ahead of july monthly expiry tomorrow 30 July 2020. Besides, the existence of a critical hurdle around 11350 zone in the Nifty added to the pressure.Nifty has got stuck in range in between 11100 to 11350 zones and requires a decisive range breakout with follow up action to commence the next leg of rally. Now it has to continue to hold 11150 zones to extend its move towards 11355 then 11425 zones while on the downside key support exists at 11025 levels. Markets will react to the outcome of Fed meet in the early trade on Thursday i.e. 30 July 2020. The scheduled derivatives expiry combined with earnings would keep the participants on their toes. Indications are in the favor of further profit-taking in the nifty ahead so we advise booking profits in existing longs and wait for clarity to re-enter.
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Resistance: 11350, 11450, 11550
Support: 11150, 11050, 10950
14 Jul
NIFTY OUTLOOK & OPTION CALL PUT TIPS FOR 14 JULY 2020 Read more: http://niftytipsniftylevels.blogsp
The bulls have done very well for themselves today. At close, the Sensex was up 99 points at 36693, and the Nifty was up 34 points at 10802. Nifty index opened positive and headed towards 10900 zones but follow up buying was missing due to underperformance of Banking stocks. It closed positive with the gains of around 35 points but formed a Bearish candle as it closed lower than its opening zones. It was consolidating in between 10685 to 10855 zones in the last entire week and now follow up is missing even after surpassing above 10875 zones.
14 Jul
NIFTY FELL NEAR ABOUT 200 POINTS
Today selling dominated the market. Nifty fallen by 192 points to close at 10609 today. At the same time, the Sensex lost 660 points to close at 36033 while Selloff in banking stocks continued .Bank nifty lost 750 points due to the fall in private banks. There was a lot of pressure on banks, metal and auto stocks today. In today`s trade only pharma stocks managed to close in the green mark. . Metals and Auto stocks were the other spectral laggards, ending lower by 2.5% each. I.T. and realty index fell over 1% respectively only pharma stocks were outperformer.TOP GAINERS-DR.REDDY,TITAN,BHARTIAIRTEL
TOP LOSERS-INDUSINDBANK,AXISBANK,ZEEL,MARUTI,SBIN
