Indian Stock Market closed on a positive note, hopes of recovery through vaccine drives and a positive global market is aiding the Dalal Street to ride a positive wave. Nifty IT stocks were among the top outperformers. Investors focus has now shifted towards the stock-specific action. Market breadth ended in favor of the advances.
Dalal Street Summary
Benchmarks indices trade with modest gains. Nifty 50 hovered above 14700.
The key equity barometers were trading with decent gains on Thursday. PSU banks saw profit booking while Metal, IT, and Auto stock witnessed buying demand.
S&P BSE Sensex, added 272.21 points or 0.56% to 48,949.69. The Nifty 50 index gained 106.95 points or 0.73% to 14,724.65. Bank Nifty gained 44.10 points or 0.13% to 32827.80
In the broader market, the S&P BSE Mid-Cap index added 0.94% while the S&P BSE Small-Cap index rose 0.70%.
Buyers outpaced sellers. On the Dalal Street ‘s BSE, 1,534 shares rose and 1,314 shares fell. A total of 147 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 1,110.50 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 240.61 crore in the Indian equity market on 5 May 2021, provisional data showed.
Wipro (up 4.41%), Hindalco Industries (up 5.67%), Bajaj Auto (up 2.63%), and Eicher Motors (up 2.60%) were major gainers in the Nifty 50 index.
PowerGrid Corporation of India (down 1.01%), UPL (down 1.43%), Sun Pharmaceutical Industries (down 0.83%), Asian Paints (down 0.54%) and SBI Life Insurance Company (down 0.61%) were major losers in Nifty 50 index.
Technical View on Nifty and Bank Nifty
Nifty 50 index managed to hold above the previous session’s highs. On the daily chart, while the Nifty has recently corrected from the highs of 15044, the index continues to hold above a rising trend line that has held the important lows of the last few months. This implies that the index remained in an intermediate uptrend.
Zooming into the 15 charts, this is clearly visible that Nifty opened with a gap up, while there was some selling pressure thereafter towards the 200-EMA, and then index witnesses an upsurge to close the session at the high of the day.
With the strong bounce-back seen on Wednesday, Nifty holds above the crucial supports of 14500—14600 in the very near term. Upside acceleration will likely pick up once the immediate resistance of 14800 is taken out.
Nifty Future strategy for the day
Resistance comes at 14800 and support lays down at 14600.
Strategy – Fresh sell below 14600 for the target of 14500—14400 or else it could test its resistance level of 14800—14900 on the upside.
Bank Nifty maintained upside amid the bullish markets, however, the upside move was at a slower pace as state-owned banks limit the gains. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline. According to pivot charts, 32800—32400 would be the trading range for the Bank Nifty index in the near term.
Nifty Bank Futures strategy for the day
Resistance is at 33000 and Support is at 32400
Strategy – Either buy above 33000 for the target of 33500—34000 or sell below 32400 for the downside target of 31800.
Top Stocks Recommendations (7th May 2021)
VEDL LTD (Cash)
The stock has been continuously forming higher highs and higher lows on the daily charts. Traders are advised to do buying around a pullback towards the 262 levels for the upside target of 269 and then to 272 levels in the days to come.
Support and stop-loss remain at 257 levels on a closing basis.
Eicher Motors (Futures)
After a sharp fall, the stock formed a bullish pattern on the lower levels. Traders can buy the stock around 2440 for upside move till 2530 and then to 2550 levels in days to come.
Support and stop loss below 2360. Trade with the levels only.
Traders can trade safely in Nifty, Bank Nifty and Stock recommendations with levels only. To get real time news and updates of Dalal Street on your WhatsApp, Click on the banner given below.
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