Yesterday, Indian Stock Markets witnessed a positive day of trade as across the board buying was seen throughout the day. Pharma stocks were among the Top outperformers as major heavyweights closed with strong gains on charts. Nifty saw an additional long position during the day. Broad writing was seen in Nifty Put option strikes. Bank Nifty zoomed after RBI Governor speech.
Stock Market Summary
Benchmark Indices extended gains and hit fresh intraday high in afternoon trade. S&P BSE Sensex, rose 424.04 points or 0.88% at 48,677.55. Nifty 50 index gained 121.35 points or 0.84% at 14,617.85. Bank Nifty gained 513.35 points or 1.59% after RBI Governor Shaktikanta Das speech and announcement of special allowances and perks for Banks who will help priority sector to lend money. Over all banking sector stocks welcomed this news and all major stocks closed in green except Bandhan Bank.
Sun Pharma, UPL and Axis Bank were among Top gainers of Nifty 50 while Adani Port, Bajaj Finance and SBI Life were Top laggards.
In the broader market, the S&P BSE Mid-Cap index added 1.05%. S&P BSE Small-Cap index rose 0.77%.
Buyers outpaced sellers. On the BSE, 1,738 shares rose and 1,092 shares fell. A total of 165 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 1,772.37 crore, while domestic institutional investors (DIIs), and were net buyers to the tune of Rs 987.34 crore in the Indian equity market on 4 May 2021, provisional data showed.
Stocks to keep an eye on: Today Hero Motocorp, Adani Power and Tata Consumer will announce their quarterly result. Click here to know short term technical view on stocks. Also keep an eye on Eicher Motors (Cash – LTP – 2372), Stock is taking support at 2356–2354, Buy at cmp or on dip near 2365–2362. Keep safe stop loss at 2300 for near term targets 2414 and then 2470 and then 2505+
Technical View on Nifty and Bank Nifty
Nifty 50 reversed to close back above 14600. Support remains at 14400, which now includes the 100-day exponential average. A close below here would suggest a deeper corrective setback. Above 14600 we can keep our bullish outlook and view the current consolidation/correction as temporary and a healthy pause within this core uptrend. With this in mind, an eventual close above 14750 can reassert the uptrend and end thoughts of consolidation, with resistance seen next at 14800, with tougher resistance expected at 15000.
Nifty Open Interest Put Call Ratio back above 1, on the options front maximum CE open Interest was seen 14900 followed by 14800 whereas, maximum PE open interest stand out at 14500 levels indicates a range of trading in the upcoming session.
Nifty Futures strategy for the day
Resistance comes at 14700 and support lays down at 14500.
Strategy – Fresh sell below 14500 for the target of 14400—14350 or else it could test its resistance level of 14700—14850 on the upside.
Bank Nifty witnessed a sharp rally after the Reserve Bank of India (RBI) announced key measures to boost the economy amid the current Covid situation in the country. RBI gave a boost to lending , liquidity facility, stressed assets provisions among others in the sector. Both private and PSU Bank stocks were in the fast lane. Bank Nifty almost tops 500 points.
Nifty Bank Futures strategy for the day
Resistance at 33500 and Support at 32200
Strategy – Either buy above 33500 for the target of 34200—34600 or sell below 32200 for the downside target of 31600.
Top Stocks Recommendations (6th May 2021)
REC LTD (Cash)
The stock is currently at crucial support levels, key moving averages will likely to given crossover indicating an upside bias in the stock. Traders are advised to do buying around 130 levels for the upside target of 135 and then to 140 levels in the days to come.
Support and stop-loss remain at 127 levels on a closing basis.
The stock has formed a bullish candle on the daily chart. Traders can buy the stock around 645 for an upside move till 672 and then to 680 levels in days to come.
Support and stop loss below 620 on a closing basis. Trade with the levels only.
Traders can trade safely in Nifty, Bank Nifty and given stock recommendations with levels only. To get real time market updates and news on your WhatsApp, click on the banner given below.
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