Nifty 50 index emerged as the top underperformer among Asian peers on Thursday trading session as investors sentiments were weighed down over inflation concerns amid the ongoing Covid-19 spread. Bank Nifty also witnessed selling pressure as the broader markets were on a bearish bandwagon globally. Except for PSU Banks and Realty sector stocks, all other sectoral indices settled lower on Indian Exchanges.
Stock Market Summary
Domestic equity benchmarks extended losses and hit fresh intraday low in mid-afternoon trade. Oil & gas shares corrected after a recent rising streak.Nifty50 hovered above 14,900 marks.
S&P BSE Oil & Gas index was down 1.56% to 15,692.61. The index rose 2.3% in the past four sessions.
GAIL (India) (down 3.34%), Petronet LNG (down 2.79%), ONGC (down 2.87%), HPCL (down 2.11%), Indraprastha Gas (down 1.10%) Indian Oil Corporation (down 2.29%) and Gujarat State Petronet (down 0.77%) declined.
The index, S&P BSE Sensex, was down -337.78 points or 0.68% to 49,564.86. Nifty 50 index lost -124.10 points or 0.83% at 14,905.05.Bank Nifty shed with -350.65 or -1.04% at 33334.5.
The broader market outperformed the benchmark indices. S&P BSE Mid-Cap index was down 0.16% while S&P BSE Small-Cap index rose 0.22%.
Buyers outpaced sellers. On the BSE, 1652 shares rose and 1340 shares fell. A total of 168 shares were unchanged.
Gainers & Losers of the day:
Mahindra & Mahindra (M&M) (up 2.32%), Cipla (up 2.38%), BPCL (up 2.09%), Titan Company (up 0.94%) and IndusInd Bank (up 0.98%) were major gainers in Nifty 50 index.
Tata Steel (down 5.10%), Hindalco Industries (down 4.24%), Britannia Industries (down 2.98%), Oil and Natural Gas Corporation (ONGC) (down 2.87%), and Coal India (down 3.42%) were major losers in Nifty 50 index.
Stock in Spotlight:
Tata Steel fell 4.96% to Rs 1106.60. Fitch Ratings has upgraded India’s Tata Steel’s (TSL) Issuer Default Rating (IDR) to ‘BB’, from ‘BB-‘. The outlook is stable.
The upgrade follows a significant improvement in TSL’s financial profile in the financial year ended March 2021 (FY21), driven by a jump in margins following a faster recovery in the global steel market from the impact of the coronavirus pandemic than expected. The agency expects TSL’s leverage to remain stable over the next three years, it said.
HPL Electric & Power hit an upper circuit of 5% at Rs 51.45 after the company bagged two orders worth over Rs 372 Cr for its switchgear, wires, and other related accessories for housing projects in the state of Andhra Pradesh. The current total order book of the company now stands over at Rs 700 crore.
Technical View on Nifty and Bank Nifty
Nifty index fades from the highs and traded below 15000 levels, forming a negative candle on the daily chart. The index remains subdued throughout the session, down 0.81% intraday, after breaking an upward sloping trendline. Bearish MACD cooperates with the trend line breakdown to keep the sellers hopeful. However since 14700 is held on a closing basis, the overall market trend remains bullish. If we break 14700 there will be a reason for concerns as if we disrespect that, we could slide down to 14400. On the upside, there is still room to achieve targets of 15300—15400. All the dips or corrections can be utilized to enter long positions.
Though Nifty Open Interest Put Call Ratio fell drastically from 1.25 to 1.09, it is above 1 which is a positive sign for buyers. Maximum call open interest was seen in the region of 15000 and then to 15100 level and maximum Put open interest was seen in the region of 14900 indicates a range of trading in the upcoming session.
Nifty Futures strategy for the day
Resistance comes at 15100 and support lays down at 14700.
Strategy – Fresh sell below 14700 for the target of 14600—14500 or Else it could test its resistance level of 15100—15300 on the upside.
Banking stocks witnessed a subdued demand from investors as broader markets turn volatile amid fragile global cues as inflation concerns weigh down on sentiments. PSU Bank maintained steady, however, at a slower pace after meeting with RBI officials. Bank Nifty index witnessed some selling pressure in the last hour of the trade. Down almost 1% at the close. On the technical front, index formed a red candle on the daily charts but continues to hold a short-term moving average. 33000 levels should be key support and a dip towards these levels should be used to accumulate long positions.
Nifty Bank Futures strategy for the day
Resistance at 34000 and Support at 33000
Strategy – Either buy above 34000 for the target of 34500—35000 or sell below 33000 for the downside target of 32200.
Top Stocks Recommendations (21st May 2021)
Stock has given breakout from its immediate resistance of 200-EMA. Traders are advised to do buying around 220 levels for the upside target of 240 and then to 250 levels in the days to come.
Support and stop loss below 200 on a closing basis.
Stock looks bullish and trying to break its major hurdle on the daily chart. Traders can buy on dip around 1290 for upside move till 1340 and then to 1360 levels in days to come.
Support and stop loss below 1250. Trade with the levels only.
Traders can trade safely in Nifty, Bank Nifty and Stock recommendations with levels only.
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