On Tuesday’s trading session, Domestic equity markets ended with losses. Nifty 50 index after a gap down tries to stay in positive territory but failed to carry the momentum throughout the session as late hour selling retreated Nifty almost 1% from the day high. About 848 shares have advanced, 2428 shares declined, and 132 shares are unchanged.
The resistance of the Indian Market has started to move with the world market. The support from DII & Retail investors is reducing after the heavy selloff unsteadying their optimism. A fall in financial liquidity is expected to slow down the economy and the pricing of equities. Participants should focus on the sectors/themes which are playing out well and utilize the pause to accumulate quality stocks on dips.
Market Summary
Nifty (down 0.38%) – Open 16248.90, High 16404.55, Low 16197.30, Close 16240.05
Bank Nifty (up 0.60%) – Open 34181.20, High 34781.80, Low 34176.80, Close 34482.65
Sensex (down 0.19%) – Open 54309.31, High 54857.02, Low 54226.33, Close 54364.85
India Vix – up 1.23% to end at 22.3025 levels
FII’s: Net Sellers : ( – 6960.59 Crores )
DII’s: Net Buyers : ( + 2958.40 Crores )
Bullish Sectors – FINANCE (+0.54%), FMCG (+0.49%)
Bearish Sectors – METALS (-5.20%), ENERGY (-3.59%)
Top Gainers Stocks – EICHER MOTORS (+3.04%), HUL (+3.01%)
Top Losers Stocks – COAL INDIA (-7.10%), TATA STEEL (-6.98%)
Nifty Open Interest Put Call Ratio (PCR): 0.59
Maximum CE Open Interest Strike: 17000
Maximum PE Open Interest Strike: 16000
Bank Nifty Open Interest Put Call Ratio (PCR): 0. 70
Maximum CE Open Interest Strike: 36000
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)
Technical View of Nifty and Bank Nifty Index
Nifty Index
Nifty index in the opening session tried to move higher, but the small effort of the bulls has been stopped by the previous day’s high price, which acted as a resistance.
Price rejection from the previous day’s high has led to an almost 200 points downside move.
Now for the near term, 16400 will act as a resistance, and moving beyond this will take the index towards 16500+ levels.
On the technical front, 20- the period Simple Moving Average on 15- a min timeframe started flattening, indicating that the current short term downtrend is matured and there could be a pullback rally, above the mentioned resistance level.
As far as the longer-term chart is considered, though we are open to some intraday pullback rally, the longer-term trend continued to be weak.
Any breakdown of the low of 9-th May which is 16142 on the spot, could lead to a further downward move in the days to come.
Now, What to Expect?
Sustainable trading action below 16150 on the Nifty Futures may take it downwards towards 16080 and then to 15900 levels, while on the upside a move above 16420 may take it towards 16550 and then to 16650.
Bank Nifty
Bank Nifty has shown a strong positive move in comparison to Nifty, majorly being supported by IndusInd Bank and the Kotak Bank.
It has broken its previous day’s high and also the R1-Pivot but is unable to sustain above it.
The last hour of selling has put pressure on the index and led to profit booking.
Descending the trendline on the 15- min chart starting from May-4, the index tried to sustain above that but struggled to hold that level.
A move above 34800 (Spot levels), may take the index towards 35130, which is the low of May 4th and 5th and also the gap left.
On the flip side breaking of support of 33950 may lead the index towards a new downside level.
Now, What to Expect?
Bank Nifty Future has support at 33950 if breaks and sustain below that level then it will take it towards 33750–33550.
Resistance at 34820 breaks and sustains above this will take it to 35000–35250.
Top Stock Picks for Today (11th May 2022)
AAVAS (CASH)
Stock is taking good support from the lower levels and RSI also supports our view. we may expect a good up move in a shorter time frame
Strategy -Traders can grab AAVAS around 2250 for a target of 2400 and then 2500 in the coming days. Support and stop-loss will be below 2100 on a closing basis.
SRF (FUTURES)
A continuous bearish trend is seen in this counter. Sell from every breaking of the previous low will be a good entering opportunity in it.
Strategy – Traders can sell SRF Futures below 2105 for the target of 2050 and then 2000 in a few upcoming trading sessions. Support and stop-loss will be above 2140 on a closing basis.
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