Indian Stock Market continued to gain momentum, with the benchmark index hitting fresh lifetime highs for the second consecutive trading session. Both major indices closed at intraday highs. Reliance Industries was among the Top Outperformers and added fresh long positions during the day. Market breadth ended in favor of advances. Nifty PCR is at 1.52 indicating huge buying interest in the index. Metal stocks again outshined the market.
Stock Market Summary
Domestic Equity Indices firmed up further in mid-afternoon trade. Nifty 50 after opening marginally gap down, further dipped and made a low of 15374.90. From there it bounced back and made all time high of 15606.35, and closed above key resistance levels of 15,550.
Auto shares corrected after advancing in the past six sessions. Strong buying interest was seen in financial, consumer goods, and metal shares. Selling pressure witnessed in select auto and PSU bank stocks. Nifty sectoral indices were mixed, with the Nifty PSU bank index down 0.69% while the Nifty metal index jumped over 2.10%. Nifty Auto index shed 0.37% to 10,491.85. The index had advanced 2.78% in the past six sessions.
S&P BSE Sensex was up 492.43 points or 0.96% to 51,937.44. Nifty 50 index gained 147.15 points or 0.95% at 15,582.80 . Bank Nifty index rose 385.20 points or 1.10% and closed at 35,526.35 . Broader market underperformed the benchmarks. S&P BSE Mid-Cap index rose 0.45% S&P BSE Small-Cap index gained 0.50%.
Gainers & Losers:
ITC (up 1.93%), Bharti Airtel (up 2.37%), JSW Steel (up 3.25%), ICICI Bank (up 3.00%) and TATA Steel (up 2.13%) were major gainers of Nifty 50 index.
Mahindra & Mahindra (M&M) (down 4.36%), Adani Ports (down 0.09%), Bajaj Auto (down 0.30%), IndusInd Bank (down 0.45%) and Larsen & Toubro (L&T) (down 0.39%) were major losers of Nifty 50 index.
Buyers outpaced sellers. On the BSE, 1700 shares rose and 1475 shares fell. A total of 200 shares were unchanged.
Technical View on Nifty and Bank Nifty
Nifty 50 is continuously crossing its all upside barriers to trade higher, today it has again extended its gains and breach the immediate resistance zone of 15500 and gave closing above it. On the daily chart it has formed a green candle. Looking at the intraday charts, index attracted some dip-buying and climbed above 15500. The rising 50-day simple moving average (SMA) and its near completion of bullish crossover of the 100-say SMA could resuscitate bullish impetus. Expectations are that it may resolve higher and head towards the upside target of 15700—15800. Initial support could come around 15200.
Nifty open interest Put Call Ratio climbed around 1.52 levels. Maximum Call open interest is seen around 15700 levels whereas maximum Put open interest is seen around 15400 levels indicates a range of trading in the upcoming session.
Nifty Futures strategy for the day
Resistance comes at 15600 and support lays down at 15400.
Strategy – Fresh buy above 15600 for the target of 15650—15700 on the upside, or else it could test its support level of 15400.
Bank Nifty closed near to its major resistance of 35500. Mixed sentiments were witnessed among investors for the sector. On the technical front, calming in the Ichimoku lines is indicating some pause in positive sentiment while the short-term oscillators, which are suggesting that bullish momentum is resilient, are favoring the upside. Moreover, the stochastic oscillator’s recently regained positive charge. Buying interest may intensify above 36000 levels and may rally towards its previous highs. Near-term major support is at around 34500.
Nifty Bank Futures strategy for the day
Resistance at 36000 and Support at 34500
Strategy – Either buy above 36000 for the target of 36500—37000 or Sell below 34500 for the downside target of 33500.
Top Stocks Recommendations (1st June 2021)
AVANTI FEED (CASH)
The stock has broken its previous crucial resistance and gave closing above it. Traders are advised to do buying around 595 for the upside target of 625 and then to 675 levels in the days to come.
Support and stop-loss remain at 550 levels on a closing basis.
BHARTI AIRTEL (FUTURES)
The stock has formed a bullish candle on the daily chart. Traders may look for buying opportunities in this counter around 535 for the upside target of 553 and then to 558 levels in the days to come.
Support and stop-loss will remain below 520 levels on a closing basis. Trade with the levels only.
Traders can trade safely in Nifty and Bank Nifty along with stock recommendations with levels only. More will update during the market hours.
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