Indian Stock Market Summary
Indian stock markets ended the day in the red yesterday. NSE Nifty closed down by 89.5 points over the previous day’s close. BSE Sensex closed with 236 points loss.
Top gainers yesterday were Dr. Reddy, HDFC, and Kotak.
Top losers today yesterday Divi’s Lab, Tech Mahindra, and Grasim.
Delhivery’s shares yesterday got listed at a premium of 1.68 % over their IPO issuance price.
FII’s : Net Sellers : ( – 2393.45 Crores )
DII’s : Net Buyers : ( + 1948.49 Crores )
It can be seen that many of the stocks that were among the gainers the previous day, turned out to be among the losers the next day, and vice-versa. This indicates that much of the market movement currently is driven by the intention to take advantage of price movements to book profits.
The news of the Indian government restricting the exports of many commodities is not a favorable one for many companies. The government is doing so as it tries to control rising inflation. Now reports are coming that the government may impose restrictions on sugar exports. This news is going to weigh down on market sentiments.
Nifty Open Interest Put Call Ratio (PCR): 0.90
Maximum CE Open Interest Strike: 16300
Maximum PE Open Interest Strike: 16000
Bank Nifty Open Interest Put Call Ratio (PCR): 0.90
Maximum CE Open Interest Strike: 34500
Maximum PE Open Interest Strike: 34000
(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 and Bank Nifty
Nifty
Nifty witnessed some sideways trading action, it opened higher, rejected form daily central pivot range, and moved lower. The same price action has happened in the afternoon session also.
With the high volatility in action throughout the day, the nifty index had likely to hold its psychological support of 16000.
Daily price action has formed a bearish candle, with the index breaking more than 50% level of the big bullish candle of 20th May.
The volatility may continue over the near term. Any decisive breakout above 16400 (Spot levels) may induce a strong directional move in the market.
Now, What to Expect?
Sustainable trading action below 16030 may take it downwards towards 15900 and then to 15800 levels, while on the upside sustainable move above 16250 may take it higher toward 16370 and then to 16450 level.
Bank Nifty
Bank Nifty index also remained directionless during the day leading to volatility in the market.
On daily charts, the Bank Nifty has formed a bearish candle, which is indicating further weakness in the near future.
Short-term momentum oscillators indicate a bearish bias. The RSI fluctuates near the 44 range, currently in the indecisive zone.
Now, What to Expect?
Bank Nifty Future has support at 34000 if breaks and sustain below that level then it will take it towards 33800–33650 levels.
Resistance at 34500 breaks and sustains above this will take it to 34750–35000 levels.
Top Stock Pick For Today (25th May 2022)
GESHIP (CASH)
Stock is trading near its resistance zone and formed a range. If break and sustain above given levels, we may expect a good up move in a shorter time frame.
Strategy – Traders can grab GESHIP above 438 for the target of 450 and then 460 in the coming days. Support and stop loss below 438 on a closing basis.
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