On the first trading day of the week, Indian benchmark indices ended higher in the highly volatile session with the Nifty closing above 15,800. The Indian stock market recovered it’s initial losses, helped by banking stocks, as preliminary Q1 business data showed healthy credit growth. Some selling across IT stocks was seen, as Investor preferences are shifting from growth to value stocks.
What’s Next?
As we approach the new earnings season, the market’s primary attention will be on quarterly results and an updated outlook for the new fiscal year. Volatility will be high on the result-specific stock. Overall look for key resistance and support levels for any short-term trade execution.
Dalal Street Roundup
Nifty (up +0.53%) – Open 15710.50, High 15852.35, Low 15661.80, Close 15835.35
Bank Nifty (up +1.20 %) – Open 33558.85 High 33978.50, Low 33515.60, Close 33940.90
Sensex (up +0.62%) – Open 52851.67, High 53301.99, Low 52674.81, Close 53234.77
India Vix – down 1.31% to end at 20.97
FII’s: Net Sellers : ( – 2149.56 Crores )
DII’s: Net Buyers : ( + 1688.39 Crores )
Bullish Sectors –– FMCG (2.66%), PSU Bank (1.66%)
Bearish Sectors –– Metal (-0.99%), IT (-0.62%).
Top Gainers Stocks – Hindunilvr (+3.78%), IndusInd Bank (+2.96%)
Top Losers Stocks – TCS (-2.54%), Tata Steel (-2.21%)
Nifty Open Interest Put Call Ratio (PCR): 1.14
Maximum CE Open Interest Strike: 16000
Maximum PE Open Interest Strike: 15700
Bank Nifty Open Interest Put Call Ratio (PCR): 1.16
Maximum CE Open Interest Strike: 34000
Maximum PE Open Interest Strike: 33500
(The maximum CE PE open interest strike rate indicates that the market is likely to move in that particular range in the coming days.)
Support and Resistance of Nifty & Bank Nifty for today’s session
Nifty
Following a gap-down opening on July 4, the Nifty had a brief consolidation around the 15650-15800 region. And the bulls managed to break over the 15800 barriers at the close of the session.
The hourly chart reveals that the index is trading near a falling trendline, beyond which the index’s rising momentum will accelerate.
The Nifty is inching up towards 15900–16000 on the upswing. The level of 16000, on the other hand, represents a critical barrier for the index, sustain above this will lead to further upside.
15650 and 15500, on the other hand, are short-term supports that give cushion on the.
Nifty Futures Strategy for Tuesday
Nifty Future has resistance at 15900 if breaks and sustains above that level, then it will take it to 16000–16100.
Support at 15700 breaks and sustain below that level will take it towards 15600–15500.
Bank Nifty
After the gap-down opening Nifty Bank recovers over 400 points to trade above the 33,900 marks.
It gains over 1% to close near the day’s high.
Both the Public and the Private Bank stocks supported the financial index to push upside.
On the technical front, the index needs to close above the major resistance level, for a rally toward the upside.
Bank Nifty Futures Strategy for Tuesday
Bank Nifty Future has resistance at 34200 if breaks and sustain above that level then it will take it to 34400–34600.
Support at 33900 breaks and sustain below that level then it will take it to 33700–33500.
Top Stock Recommendation For Today (05th July 2022)
Escorts (Futures)
The stock has rebounded from support levels and will likely break out in the near term.
Strategy: Traders are advised to buy Escorts Futures above 1540 for the upside target of 1550 and then to 1560 in the coming days. Support and stop loss will be below 1530 levels.
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