Yesterday after state election results Indian Stock Market opened gap down but later rebounds from the lows. Nifty 50 index settles on the subdued level. Metal stocks were the top performers of the day. Bank Nifty was the top laggard of the day. Options data indicates that Nifty could see a wider trading range of 14200—15200 levels. Stock-specific action will likely continue in the short term.
Stock Market Summary
Metal stocks were in the fast lane. Nifty FMCG continued to trade higher despite the bearish market tone. The index led the gains from Marico and heavyweights Hindustan Uniliver. Corporates earnings also play a major role in influencing Indian markets as heavyweights stretched the winning streak to lift the performance.
Investors continued to pull back money from banking stocks amid the ongoing Covid spread. AU small finance bank was the top underperformer.
As per the provisional closing data, S&P BSE Sensex, fell 63.84 points or 0.13% to 48,718.92. Nifty 50 index closed 3.05 points or 0.02% higher at 14,634.15. Bank Nifty index closed fell 316 points or -0.96%.
In the market, the S&P BSE Mid-Cap index rose 0.28% while the S&P BSE Small-Cap index added 1.57%.
Buyers outpaced sellers. On the BSE, 1,826 shares rose and 1,217 shares fell. A total of 171 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 2289.46 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 552.2 crore in the Indian equity market on 03 May 2021, provisional data showed.
Technical View on Stock Market
Nifty rejects 14400 levels. The main trend in the short-term continues to point to the upside. A consolidation above 15000 is needed to clear the way to more gains. Resistance levels might be seen at 14800—14950, before the final strong barrier of 15000.
Technical indicators in the daily chart point to some consolidation ahead with the odds of further correction. The area of 14400 is the next support that should limit the downside, probably favoring a rebound.
The critical support for the bullish perspective is at 14400, an uptrend line and also the 55-day simple moving average. A break lower would negate the upside bias.
Nifty Future strategy for the day
Resistance comes at 14800 and support lays down at 14400.
Strategy – Fresh sell below 14400 for the target of 14300—14200 or else it could test its resistance level of 14800—14950 on the upside.
Bank Nifty is down almost 1.00% at 32465.75 amid low PCR, low and a breach of 33000 would target of 34200. On the other hand, support emerges at 31600 below this index may slide towards 31000 levels. Heavyweights weighed down the sector the most. Investors continued to pull back money from banking stocks amid the ongoing Covid spread.
Nifty Bank Futures strategy for the day
Resistance at 33000 and Support at 31800
Strategy – Either buy above 33000 for the target of 33600—33800 or sell below 31800 for the downside target of 31000.
Top Stocks Recommendations (4th May 2021)
Catch this counter above 625. Break above 625 then the stock price may move towards 650 and then to 670 levels in the days to come.
Support and stop-loss remain at 594 on a closing basis.
The stock has formed a bullish candle on the daily chart. Traders can buy the stock above 970 for an upside move till 1010 and then to 1035 levels in days to come.
Support and stop loss below 935 on a closing basis.
Traders can trade safely in Nifty, Bank Nifty and given Stock recommendations with levels only. To get real time stock market news and updates on your WhatsApp click on the banner given below.
We are a SEBI registered investment advisor. The above free information is for education/knowledge purposes. Read disclaimer on our website before investing.