Indian Stock Market witnessed a lackluster day of trade with the major benchmark indices witnessing profit booking during the closing part of the trade. Banking stocks were among the top outperformers with stocks like ICICI Bank and SBI witnessing an addition of fresh long positions. 35200 would be immediate resistance for the Bank Nifty. On the other side a fresh upside rally would come in Nifty 50 above 15300 levels.
Stock Market Summary
Domestic benchmark indices BSE Sensex and Nifty 50 ended marginally up on Monday, after trading flat for the most part of the session.
BSE Sensex gained 111 points or 0.22% at 50,652, while Nifty 50 index settled just below 15,200 on fag-end buying by gained 39.25 points or 0.26% at 15,197.70. Nifty Bank index gained 336.70 or 1% at 34943.60 and the Nifty PSU Bank index jumped over 2 %. Except for Nifty Metal and Nifty FMCG indices, all the sectoral indices ended in the positive territory.
News which impacted market yesterday –
Metal prices have soared in recent months helped by China’s policy changes and crack-down on pollution. However, the recent fall has also been nudged by China. “China’s cabinet announced last week that it would strengthen its control of commodity supply and demand to prevent ‘unreasonable’ price increases from being passed on to consumers,”. Chinese regulators have picked up the task to control prices, even meeting leading companies. “A statement from the world’s biggest metal user has triggered the investors to book the partial bookings in the metal stocks like Tata Steel, JSW Steel and others.
The broader market outperformed the benchmark indices. S&P BSE Mid-Cap index rose 0.86%. S&P BSE Small-Cap index gained 0.70%.
State Bank of India (SBI) (up 2.44%) , Larsen & Toubro (L&T)(up 1.76) , ITC (up 1.20%), Dr. Reddy’s Laboratories (up 1.14%), Axis Bank (up 1.11%), Power Grid Corporation (up 1.34%) of India, Maruti Suzuki (up 0.99%) and ICICI Bank (up 0.76%) were among top index gainers.
On the flip side, IndusInd Bank (down 1.38%) was the top Sensex loser, followed by Titan Company (down 1.19%), Bajaj Finserv (down 0.69%), Hindustan Unilever Ltd (HUL) (down 1.04%), Ultratech Cement (down 1.30%), Mahindra & Mahindra (M&M) (down 0.89%) were top index laggards.
Buyers outpaced sellers. On BSE 1,915 shares rose, 1,177 shares fell while 176 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 510.16 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 649.10 crore in the Indian equity market on 21 May 2021, provisional data showed.
Technical View of Stock Market
Nifty
Nifty 50 tested 15250 levels on the upside, ended up closing the day in slight green around 15197 levels and continued to trade in a tight range throughout the session. Index formed a DOJI candle on the daily chart with a large wick on both sides. The overall trend continued to remain positive for the index. Immediate support for the index is around 14950, while upward momentum will come on break of 15250 levels. Oscillators like MACD and RSI will continue to be positive.
Nifty open interest Put Call Ratio is around 1.30 levels, maximum call open interest was seen in the region of 15300 followed by 15400 levels, and maximum Put open interest was seen in the region of 15000 levels indicates a range of trading in the upcoming session.
Nifty Futures strategy for the day
Resistance comes at 15300 and support lays down at 14950.
Strategy – Fresh sell below 14950 for the target of 14850—14750 or else it could test its resistance level of 15300—15380 on the upside.
Bank Nifty
Bank Nifty also witnessed a sideways session and closed around 34893.20. The daily price action formed a Doji candle. A key observation is that the index closed higher in comparison with its previous close. Index will maintain its upside bias above 35000 and head towards 35500—36000 levels. Among the oscillators, the daily stochastic remain uptrend and is currently placed at a reading of 70 thus supports the continuation of the positive bias in the index in the coming session. Support is around 34200 levels.
Nifty Bank Futures strategy for the day
Resistance at 35000 and Support at 34200
Strategy – Either buy above 35000 for the target of 35500—36000 or sell below 34200 for the downside target of 3300.
Top Stocks Recommendations (25th May 2021)
LGBBROSLTD (CASH)
The stock has taken support of the Donchain Channels middle line. Traders are advised to do buying around 325 levels for the upside target of 350 and then to 370 in the days to come.
Support and stop-loss remain at 300 levels on a closing basis.
GAIL (FUTURES)
Gail, after a sharp fall, the stock formed a bullish pattern on the lower levels. Traders can go for buying around 153.50 for upside move till 162 and then to 165 levels in days to come. Support and stop loss would be below 149.
Trade with the levels only.
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