Dalal Street witnessed a lackluster day of trade with the indices witnessed profit booking during the second half of the trade. Sensex and Nifty both indices closed almost flat. Banking stocks were among the top underperformers, with heavyweights like HDFC Bank and SBI witnessing profit booking. Bank Nifty PCR is below 1. Now, 35200 is the immediate supply zone for the index.
Dalal Street Summary
Benchmark indices staged a strong recovery in late trade and ended with tiny losses after a volatile session on Monday. Nifty 50 managed to close near the 15,200 level after slipping below the 15,250 mark in early trade.
Mounting COVID-19 cases continued in the country and a negative trend in Asian equities capped gains. Metal and FMCG stocks were in demand while banks and realty shares corrected on Dalal Street.
Domestic equity barometers BSE Sensex and Nifty 50 ended flat after a range-bound trade on Tuesday. BSE Sensex ended 14.37 points or -0.03 down at 50,637.53 while index Nifty 50 gained 10.75 points or 0.07% closed at 15208 and Bank Nifty down 281.60 points or 0.81% at 34662.
Nifty PSU Bank was down 1.34% and the Nifty Private Bank index lost 0.90%. While Nifty IT gained 1%, the Auto index was up 0.66%.
Foreign portfolio investors (FPIs) bought shares worth Rs 585.36 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 707.69 crore in the Indian equity market on 24 May, provisional data showed.
Gainers and Losers
ASIANPAINTS (up 3.51%), TITAN (up 3.31%), JSW STEEL (up 3.02%), EICHERMOT (up 2.93%) and BRITANNIA (up 2.21%)
HDFC BANK (down 1.92%), HDFCLIFE (down 1.37%), AXISBANK (down 1.18%), RELIANCE (down 1.09%) and COALINDIA (down 0.94)
Technical View of Dalal Street
Nifty index witnessed some selling and eroded a part of the previous day’s positive move. It continued to hold above 15000 levels. Looking at the technical perspective, resistance is stalled around 15300, then mention hurdle will now act as a pivotal point any sustainable upside move will come on a break above this level.
The relevant support to the downside is pegged near the 15100—14950 mark. Any subsequent fall might be seen as a buying opportunity. On 30-min chart 100-EMA is continuously trending higher, showing bullish bias in the index.
Nifty Open Interest Put Call Ratio fell from 1.38 to 1.19, maximum call open interest was seen in the region of 15300 whereas maximum Put open Interest was seen around 15000 levels indicates a range of trading in the upcoming session.
Nifty Futures strategy for the day
Resistance comes at 15300 and support lays down at 14950.
Strategy – Fresh sell below 14950 for the target of 14850—14750 or Else it could test its resistance level of 15300—15380 on the upside.
Bank Nifty extended losses during the second half of the trading session with heavyweight HDFC Bank weighing down the most. Other major private banks further took a toll. This led the index to emerge as the top bear. Bank Nifty closed around 34662 (Spot level) down around 281.60 levels. The daily price action formed a red candle signaling some negative bias in the index. An immediate supply zone is created around 35200 levels while major support is around 33800—34000 levels.
Nifty Bank Futures strategy for the day
Resistance at 35000 and Support at 34200
Strategy – Either buy above 35000 for the targets of 35500—36000 or Sell below 34200 for the downside target of 33000.
Top Stocks Recommendations (26th May 2021)
JAYANT AGRO (CASH)
Stock has rebounded from the major support levels. Traders are advised to do buying around 190 for the upside target of 200 and then to 220 in the days to come.
Support and stop-loss remain at 180 on a closing basis.
RBL BANK (FUTURES)
The stock has formed a bearish pattern on the daily chart and ready to break its support levels. We will expect a sharp downside side move from the current levels. Traders can go short around 205 for the downside move till 198 and then to 193 levels in days to come.
Support and stop-loss remain above 212 on a closing basis. Trade with the levels only.
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