Indian Stock Markets witnessed a positive day of trade with the indices witnessing a strong bullish momentum during the closing part of the trade. Bank Nifty outperformed the Nifty index with both the former closed the day in the green. Banking heavyweight stocks like Axis Bank, SBI & Kotak were closed at day’s high along with an addition of fresh long positions. Nifty immediate targets would be around 15500—15600 if it sustain above 15400 levels.
Indian Stock Market Summary
Indian stock market remains unstable on the F&O expiry day on May 27 however a bull charge just pushed the Nifty over 15,300 to a record closing high.
S&P BSE Sensex rose 97 focuses to 51,115 and the Nifty 50 shut with gains of a day and a half at 15,337.
Sector wise, financials stocks lifted the market, with the Nifty Bank gaining more than 1% followed by Consumer durables, Power, Utilities, and IT.
Metal stocks have witnessed massive volatility this week as investors gauge base metal prices and demand outlook ahead. Credit Suisse has downgraded the sector as various risks emerge on the prices ahead. Further inflation concerns have unfolded their effect on the sector. However, on Thursday Nifty Metal index has picked up momentum on broad-based buying. Nifty FMCG index traded on a flat note. Marico and United Spirits led the gains while heavyweights Jubilant Food works and HUL weighed on the index.
The market gained its momentum in the opening hours on hopes of a state-wise unlocking due to declining COVID cases. However, RBI’s warning of the risk of a bubble in the equity market in its annual report made the market cautious.
Market breadth ended in the favor of the advances with the advance/decline ratio closing at 1:1x
Technical View on Stock Market
After few minutes of weakness after opening bell, buying interest came around 15280 levels, that took the Nifty 50 index above the previous day’s highs as seen on the intraday charts. Nifty traded in a range with high volatility on the monthly expiry and closed on a positive note around 15337.90 (Spot level) amid mixed global cues.
The formation of higher high- low supported by rotational sectoral leadership highlights broader participation that supports that Nifty could challenge its lifetime highs of 15400 incoming sessions and could eventually head towards the revised target of 15500—15600. Any intraday dip or correction can be utilized to accumulate long positions on Nifty. We have good support at around 15000 levels. As long as we do not break this on a closing basis we are in bull territory.
Nifty Futures strategy for the day
Resistance comes at 15400 and support lays down at 15200.
Strategy – Fresh buy above 15400 for the target of 15500—15600 on the upside, or else it could test its support level of 15200.
Banking stocks recorded favorable gains with major state-owned banks stocks drove the sector. Private banks were in focus after Reserve Bank of India (RBI) governor Shaktikanta Das met with the MD and CEOs of the banks. Notably, the sector has witnessed higher volatility, as it has touched an intraday high and low of 35006.70 and 34529.70 respectively.
Overall an immediate supply zone is maintained around 35200—35400 levels. Breakout from this level will take the index towards 36200 levels. We expect that it will trade with positive bias while sustaining above the mentioned supply zone. Hence use dips towards 34520—34580 for creating a long position.
Nifty Bank Futures strategy for the day
Resistance at 35400 and Support at 34500.
Strategy – Either buy above 35400 for the target of 36000—36500 or sell below 34500 for the downside target of 33500.
Top Stocks Recommendations (28th May 2021)
AMBIKA COTTON (CASH)
The stock has witnessed a rising delivery percentage compare to the previous day, with RSI indicating price strength. Traders are advised to do buying around 1160 levels for the upside target of 1200 and then to 1224 levels in the days to come.
Support and stop-loss remain at 1160 levels on a closing basis.
The stock has formed a bullish candle on the daily chart. Traders may look for buying opportunities around 838 levels for the upside target of 860 and then to 870 levels in the days to come.
Support and stop-loss will remain below 822 levels on a closing basis. Trade with the levels only.
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