Indian Stock Market traded on a negative note with profit booking witnessed in major financial stocks. Bank Nifty underperformed the Nifty index with both the indices closing in the red. Banking stocks like SBIN, ICICI Bank, HDFC Bank saw an unwinding of a long position. Market breadth ended in favor of advances. Nifty saw a marginal unwinding of long positions during the day. Indian VIX closed at 15.25, down ~2%.
Stock Market Overview
Major equity indices ended with tiny losses on Tuesday’s trading session. Nifty 50 hit a record high of 15,778.80 in early trade, encouraging traders to book profits.
The barometer index, S&P BSE Sensex, slipped 52.94 points or 0.1% at 52,275.68. Nifty 50 index lost 11.55 points or 0.07% to 15,740.10.Bank nifty decline 385.35 points or -1.01% to 35085.30. S&P BSE Mid-Cap index rose 0.38% while the S&P BSE Small-Cap index added 0.93%.
Buying was seen in IT, FMCG, pharma, and auto stocks while banks and metal stocks witnessed selling in it.
Power stocks have been on a roll recently, with the BSE Power Index surpassing its 10-month high. The index gained almost 1% on Tuesday.
The power sector is back on focus as India once again begins to ‘unlock’.
The broader market traded higher. The Buyers outpaced sellers. On the BSE, 1850 shares rose, 1355 shares fell and a total of 139 shares were unchanged.
Buzzing Stocks –
Tech Mahindra export revenues are over 94%. It derives 48.1% revenue from the US, 26.9% from Europe, and 25.0% from the rest of the world.
Tech Mahindra is partnering with several of its global clients to collectively drive the support movement against the second wave of the Covid-19 pandemic in India. These clients include Telephonic Deutschland, Project Management Institute, and Celonis.
Strategy – Buy above 1065 with the upside target of 1090. Keep Stop loss 1013.
SBIN showing weakness, Sell below 425 for the target of 400 with the upside resistance / stop loss level 440.
Technical View of Nifty and Bank Nifty
Some downward to sideways action was seen in the Nifty 50. A red Doji type of candle is seen on the daily chart with daily RSI is placed at 70 and is on a flat mode and there is no indication of any divergence. Benchmark index is respecting ‘20 EMA’ on the hourly chart on intraday dips which is placed around 15675. A move above 15800 would lead to a continuation of a trend. There is a possibility of further upside in the coming sessions. The next upside levels to watch out is 15950 and the psychological level of 16000. Support for the index is around 15675 followed by 15600.
Nifty Futures strategy for the day
Resistance comes at 15550 and support lays down at 15650.
Strategy – Fresh buy above 15850 for the target of 15900—160000 on the upside, or Else it could test its support level of 15650.
Bank Nifty ended the session on a weaker note and traded the whole day around 35000—35250, which is its immediate support level. Momentum was missing in the Bank Nifty index through the major part of the trading session. Banking space also traded on a negative note. Practically, bank nifty has a lot of room for the upside, but if that has to happen, the financial space will need some solid trigger. 35800—36000 are seem to be as immediate hurdles and only a sustainable move beyond this would result in some trended move. On the flip side 35000 is consider to be it’s key support level.
Bank Nifty Futures strategy for the day
Resistance at 36000 and Support at 35000.
Strategy – Either buy Bank Nifty futures above 36000 for the targets of 36800—37500 or Sell it below 35000 for the downside target of 34000.
Top Stocks Recommendations (09th June 2021)
CENTURY TEXTILES (CASH)
Stock is showing solid upside momentum and also breaks its previous highs. Go for buy above 570 for the upside target of 590 and then to 620 levels in the days to come.
Support and stop-loss remain at 540 levels on a closing basis.
After a long consolidation, the stock is trading around the resistance zone. Grab this counter around 488 for the upside move till 505 and then to 515 levels in days to come.
Support and stop loss will be below 475.
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