Yesterday, Dalal Street witnessed a volatile trading session. Media stocks continued to trade higher despite the volatile markets. Nifty PSU Bank index fell almost 0.60% dragged by UCO Bank and PNB. Sensex closed almost flat at 51934.88. Bank Nifty index traded under pressure, immediate supply zone for the index is positioned around 35800—36000 levels. Elevated buying demand in Nifty 50 will come above 15600 levels.
Yesterday Indian benchmark index Nifty 50 marked fresh all time high of 15660.75 in the morning session trade. After that we have seen some profit booking in Nifty index which dragged it to 15528 levels. But later on Nifty 50 index managed to gave closing above it’s crucial support level of 15500, closed at 15574.85 marginally down by approx. 8 points.
On the other hand Bank Nifty too tried to close above it’s previous day high but failed and finally settled at 35337.20, down by 189.45 points. Sensex snaps 4- day winning run, falls by 3 points. Selling pressure seen in Banking & Metals shares. Buying interest witnessed in select IT stocks. While all the sectoral indices on the NSE were in the red.
Yesterday, FII pump in 5163.36 Cr while DII were net buyers of 230.49 Cr in Equity Market.
Buzzing Stocks for tomorrow
*JSW STEEL Futures – Downtrend line Breakout is forming on daily chart. Traders can buy above 720 for the nearest target of 736 and for positional target of 770. Maintain Stop-loss below 681.
*Adani Port and Special Economic Zone(Futures) – Overall we have seen some Bullish signal on the daily chart day before . Today also we have seen the reaction of it where a bullish marabuzo candle has been formed.
Buy above 801 , upside level is around 830–850 by maintaining strict Stop loss below 765.
Technical View on Nifty and Bank Nifty
After continuous upside from the past seven sessions, some profit booking witnessed yesterday in Nifty index. The short-term trend continues to remain up. Zooming into the 60-minute chart, Nifty opened on a weak note and after some volatile trading, it managed to trade above the 13 period SMA on the same timeframe. The index will likely maintain its northbound journey and head towards the 15650—15700 levels. The temporary breather should be capitalized to accumulate long positions. Looking at the oscillators the daily RSI is inching higher indicating positive bias. ADX is also showing buying strength.
Maximum Call open interest is seen around 15600 levels followed by 15700 levels whereas maximum Put open interest is seen around 15400 levels indicates a range of trading in the upcoming session. Nifty open interest Put Call Ratio has cooled off from 1.52 to 1.32 this is not a sign of worry, it is continuing to maintain its bullish stance.
Nifty Futures strategy for the day
Resistance comes at 15650 and support lays down at 15400.
Strategy – Fresh buy above 15650 for the target of 15750—15800 on the upside, or else it could test its support level of 15400.
Bank Nifty traded under pressure amid high volatility, index was not able to perform as per the expectations. Financial index shed almost 190 points. PSU major State Bank of India led the gains and HDFC Bank traded flat, rest all the banks in the index traded on a negative note. Immediate supply zone is positioned around 35800 levels, whereas major support is around 34500 levels.
A key observation in the recent up is that the index since April has maintained the rhythm of not correcting for more than two to three sessions. During previous week, also the index rebounded after two sessions of breather. Extended rally and shallow correction highlight a positive price structure. A breakout above the supply zone can be seen as the resumption of the primary uptrend.
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 (2nd June 2021)
GUJARAT FLUOROCHEM (CASH)
Stock has given tremendous upside breakout from its previous narrow range trading sessions. Traders are advised to do buying around 910 levels for the upside targets of 960 and then to 980 in coming days.
Support and stop-loss remain at 860 levels on a closing basis.
From technical prospective we can see that a Cup & Handle pattern has been formed on the daily chart and stock also having good volume which is providing us a good bullish signal.
Fresh BUY above 118.50 for upside targets 1st 123 for (swing days) 2nd 147 for (positional) with the stop loss below 111 on closing basis.
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