Trade Setup For May 14: Nifty Finds Key Support At 24,450–24,500 Levels
If Nifty 50 succeeds in trading above these levels, it could retest the level of 24,800–24,900, an analyst said.
The NSE Nifty 50 faces key support in the range of 24,450-24,500 levels, according to Shrikant Chouhan, head of equity research at Kotak Securities.
"If the market succeeds in trading above these levels, it could retest the level of 24,800–24,900. On the flip side, below 24,450, the uptrend would become vulnerable. If the market falls below this level, traders may prefer to exit their long positions," he said.
The short-term uptrend remains intact and the Nifty is expected to bounce back from near the crucial supports of around 24,500-24,400 levels in the next few sessions, as per Nagaraj Shetti, senior technical research analyst at HDFC Securities. "Immediate resistance is placed at 24,800 levels," Shetti said.
Bank Nifty, another keenly tracked index, could head towards 56,400 levels in the short term, as per Bajaj Broking Research. "Key support for the short-term point of view is placed at 54,500- 54,000 being the confluence of the Monday’s gap area and 20-day EMA," the brokerage added.
FII/DII Activity
Overseas investors turned net sellers of Indian equities on Tuesday after a day of buying, while Domestic institutional investors remained net buyers for the third session.
Foreign portfolio investors offloaded equities worth Rs 476.86 crore, domestic institutional investors bought equities worth Rs 4,273.80 crore, according to provisional data from the National Stock Exchange.
Global Cues
Markets in Japan and Australia fell as market participants look past newly resolving US's trade relations with its key trading partners in the lack of significant cues. The Nikkei 225 and S&P ASX 200 were trading 0.75% and 0.21% down, respectively as of 6:42 a.m.
On Tuesday, the Dow Jones Industrial Average fell 0.64% at 42,140.43. S&P 500 rose 0.72% at 5,886.55.Nasdaq Composite rose 1.61% at 19,010.09
The dollar Index was 0.08% down at 100.90. The brent crude fell 0.18% at $66.32 per barrel. Gold future was trading 0.02% down at $3,246.87 a barrel as of 6:46 a.m.
The GIFT Nifty was trading flat at 24,738.50 as of 6:52 a.m.
F&O Action
Nifty May Futures down by 1.59% to 24,646 at a premium of 68 points.
Nifty May futures open interest down by 3.14%.
Nifty Options May 15 Expiry: Maximum Call open interest at 26,000 and Maximum Put open interest at 24,000.
Put-Call ratio at 0.79, with highest change in Call open interest at 25,000.
Market Recap
India's benchmark indices ended the day with losses in Tuesday's trading session. The Nifty 50 ended 1.39% lower at 24,578.35 and BSE Sensex closed down 1.55% at 81,148.22.
The losses came after the markets climbed nearly 4% on Monday, followed by easing tension between India and Pakistan and encouraging signals from ongoing US-China trade talks.
Major Stocks In News
Puravankara: The company to consider raising up to Rs 300 crore via NCDs in its board meeting on May 16.
Punjab National Bank: The company sells entire stake in the associate company India SME asset reconstruction for Rs 16.29 per share.
IDBI Bank: The company divests entire stake up to 21.14% in associate company Pondicherry Industrial Promotion Development and Investment Corp for Rs 18.8 crore.
Currency Market
The Indian rupee closed three paise stronger at 85.35 against the US dollar on Tuesday. The domestic unit opened 75 paise stronger at 84.65 against the greenback on Tuesday, following its previous close at 85.38 a dollar on Friday, according to Bloomberg.
The currency had seen a sharp decline last week, after tensions between India and Pakistan had escalated.
