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Home » Nifty ready to expand its range above 15300. Sensex reclaims 51000. Now what to expect on weekly and monthly expiry day?
Morning Nifty Update

Nifty ready to expand its range above 15300. Sensex reclaims 51000. Now what to expect on weekly and monthly expiry day?

 

Domestic stock markets witnessed a positive day of trade with the indices witnessing a strong bullish momentum for the majority of the trade. Bank Nifty underperformed the Nifty index by~ 0.55% with both the former closing in the green. IT stocks were among the top outperformers, with heavyweights like TCS & Infosys witnessing an unwinding of short positions.

 

Stock Market Summary

 

After two consecutive days of trading flat, domestic equity markets surged higher on Wednesday and closed with gains. Encouraging Q4 earnings and positive global cues boosted investor’s sentiment.

Sensex added 379 points or (up 0.75%) to close at 51,017 while Nifty 50 gained 93 points or 0.61% to close at 15,301. Broader markets concluded Wednesday’s trade with gains, except Nifty next 50 (down 0.13%) and the Midcap 50 index (down 0.11%). India VIX skyrocketed 10.77% on closing.

Among sectoral indices Bank Nifty closed almost flat added 22.20 points or 0.06% at 34684.20, Nifty Metal (down 1.86%), and the PSU Bank (down 0.26) index closed in the negative.

Nifty 50 managed to crossed and closed above 15300, if it sustains above these levels then we should be headed towards 15500-15600. We have a good support range at 15000 and hence can buy into corrections. As long as the Nifty maintains 15000 on a closing basis, we are in bullish territory.

Equity markets started cautiously positive and witnessed a strong rebound as it gained momentum from expectations of another set of relief measures. The new stimulus package is expected to focus on boosting the worst-hit sectors like tourism, aviation and hospitality along with MSMEs.

Value buying was seen in the IT sector while Metals stocks remained in the correction phase due to muted international commodity prices.


Gainers & Losers:


Bajaj Finserv (up 4.61%), Indian Oil Corporation (IOC) (up 1.45%), Grasim Industries (up 2.41%), UPL (up 1.80%) and Infosys (up 2.45%) were major gainers in Nifty 50 index.

JSW Steel (down 2.42%), Tata Steel (down 2.28%), Hindalco Industries (down 2.51%), PowerGrid Corporation of India (down 3.01%) and Coal India (down 1.05%) were major losers in Nifty 50 index.

Buyers outpaced sellers. On BSE, 1,946 shares rose, 1,070 shares fell and 125 shares were unchanged. Foreign portfolio investors (FPIs) bought shares worth Rs 959.77 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 563.59 crore in the Indian equity market on 25 May 2021, provisional data showed.

 


Technical View on Nifty and Bank Nifty

 

Nifty 

 

Nifty witnessed a positive trend, the index is continuously carrying higher high and higher low, indicating continuation of positive bias. Daily stochastic also inching northwards, the momentum indicators RSI and MACD supporting the trend and indicating potential upside from the current market levels. A make or break level is around 15300, the index needs to cross and sustain above that level to head towards 15400—15500. We have a good support range at 15000 and hence can buy into corrections, as long as the Nifty maintains 15000 on a closing basis, we are in bullish territory.

On the options front sustainability of 15000 will be crucial as is was the highest Call base for the monthly settlement. Significant Put writing was experienced across strikes and 15000 Put now holds the highest Put base. Hence continued up move due to closure among Call writers is likely to be seen in the coming session. The immediate resistance is likely near lifetime highs of 15400 levels.

Nifty Futures strategy for the day

Technical Chart of Nifty
Technical Chart of Nifty

 

Resistance comes at 15300 and support lays down at 15150.

Strategy – Fresh buy above 15300 for the targets of 15400—15500 on the upside, or else it could test its support level of 15150.

 

Bank Nifty

 

Bank Nifty unable to break its immediate supply zone of 35000–35200. The daily price action formed a red Doji candle within the previous day range. Looking at the intraday charts, the index is sort of trading in a range of 600—800 odd points. A breakout from the above supply zone will take the index towards 36000 marks. On the flip side, a continuous buying is seen around 34200 which is also confluence with monthly S1 pivot. Expectations are that the index is likely to trade with positive bias in the coming session with sustaining above previous day’s low. Hence use dips for creating a long position.


Nifty Bank Futures strategy for the day

Technical Chart of Bank Nifty index
Technical Chart of Bank Nifty

 

Resistance at 35000 and Support at 34200

Strategy – Either Buy above 35000 for the targets of 35500—36000 or Sell below 34200 for the downside target of 33000.

 

 


Top Stocks Recommendations (27th May 2021)

 

EASYMYTRIP (CASH)

 

Nifty Index Stock EASYMYTRIP

Nifty Index Stock EASYMYTRIP
Technical Chart of EASYMYTRIP
 

The stock is continuously forming higher high and higher low formations on technical chart. One can buy around 292 levels for the upside targets of 325 and then to 350 in coming days.

Support and stop-loss remain at 250 levels on a closing basis.

 

 

 

ASIAN PAINT (FUTURES)

 

Nifty Index Stock ASIAN PAINTS

Nifty Index Stock ASIAN PAINT
Technical Chart of ASIAN PAINT
 

Asian Paints stock has formed a bullish candle on the daily chart. Traders can buy this counter around 2938 for an upside move till 3020 and then to 3050++ in coming days.

Support and stop loss below 2860 on a closing basis. Trade with the levels only.

 

 

Traders can trade safely with levels only. More will update during market hours. To get real time updates on your WhatsApp. Click on the image given below.

 

Stock Market Update on WhatsApp

 

Above free information is only for educational purpose. Please consult your financial advisor before making position in it. Read disclaimer on our website.

 

 

 

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