Trade Setup For May 15: Nifty Likely To See Bullish Reversal As Momentum Turns Positive
For the Bank Nifty, as long as the index remains above 46,983, the bullish momentum will continue, a market analyst says.
India stock gauge's back-to-back bullish candles, aided by robust volume, indicate strength with a possibility of a bullish reversal, according to market analysts.
The NSE Nifty 50 exhibits signs of a potential reversal from its daily trendline, supported by robust volume, suggesting a bullish reversal, according to Mandar Bhojane, research analyst at Choice Broking. If the index closes above the 22,300 level, it may extend its upward trajectory towards 22,600 and 22,800 levels in the forthcoming sessions, he said.
The relative strength index stands at 47.30, indicating an uptick from oversold territory, signalling a growing bullish momentum, Bhojane said.
On the daily scale, the index indicates strength as it has sustained above the high of a hammer candle, Neeraj Sharma, assistant vice president of technical and derivatives research at Asit C Mehta Investment Interrmediates Ltd. "As per the hammer candlestick pattern, as long as the index holds the support of 21,820, the relief rally will continue."
For the Bank Nifty, as long as the index remains above 46,983, the bullish momentum will continue, Sharma said.
The GIFT Nifty was trading 11 points or 0.05% higher at 22,383.50 as of 06:39 a.m.
F&O Action
The Nifty May futures were up 0.5% to 22,308 a premium of 90.15 points, and its open interest was down 7.6%. The Nifty Bank May futures were up 0.15% to 48,091.65 at a premium of 232.2 points, while its open interest was higher by 2.63%.
Open interest distribution for the Nifty May 16 series indicates that the 22,000 level is seeing the most put strikes, and call strikes of 23,000 have the maximum open interest.
For the Bank Nifty options' May 15 expiry, the maximum call open interest was at 49,000 and the maximum put open interest was at 46,500.
FII/DII Activity
Overseas investors remained net sellers of Indian equities for the ninth consecutive session on Tuesday.
Foreign portfolio investors offloaded stocks worth Rs 4,065.5 crore, while domestic institutional investors stayed net buyers for 16 straight sessions and mopped up equities worth Rs 3,527.9 crore, the NSE data showed.
Markets On Tuesday
The benchmark equity indices continued to gain for the third consecutive session on Monday, with shares of Reliance Industries Ltd. leading the gains.
The NSE Nifty 50 closed 113.80 points or 0.51% up at 22,217.85, while the S&P BSE Sensex ended 328.48 points or 0.45% higher at 73,104.61. The Sensex reclaimed the 73,000 level after three sessions.
Except Nifty FMCG and Pharma, all sectoral indices on the NSE ended higher, with Metal rising the most.
The broader markets outperformed the benchmark indices as the BSE MidCap ended 1.14% higher and the SmallCap settled 1.79% up.
Eighteen out of the 20 sectors on the BSE advanced, with Utilities being the top-performing index and FMCG being the worst.
Major Stocks In News
Mahindra & Mahindra: The company arm Mahindra Holdings sold the entire 30.8% stake in the New Delhi Centre for Sight for Rs 425 crore.
Aurionpro Solutions: The board recommended a bonus issue in the ratio of 1:1.
The New India Assurance: The company appointed Vimal Jain as the CFO and Pooran Tulsiani as CIO.
Bharti Airtel Q4 FY24 (Consolidated, QoQ)
Revenue down 0.8% at Rs 37,599 crore vs Rs 37,899 crore, (Bloomberg estimate Rs 38,607 crore)
Ebitda down 2.3% at Rs 19,365 crore vs Rs 19,815 crore, (Bloomberg estimate Rs 20,480 crore)
Ebitda margin at 51.5% VS 52.3% (Bloomberg estimate 53%)
Net profit down 28% at Rs 2,068 crore VS Rs 2,876 crore, (Bloomberg estimate Rs 3,274 crore)
Final dividend of Rs 8 per share.
Shree Cement Q4 FY24 (Consolidated, YoY)
Revenue up 6.5% at Rs 5,433 crore vs Rs 5,100 crore, (Bloomberg estimate Rs 5,147 crore)
Ebitda up 59.9% at Rs 1,422 crore vs Rs 889 crore, (Bloomberg estimate Rs 1,212 crore)
Margin at 26.2% vs 17.4% (Bloomberg estimate 23.6%)
Net profit up 28.7% at Rs 676 crore vs Rs 525 crore, (Bloomberg estimate Rs 592 crore)
Global Cues
Stocks in the Asia-Pacific region rose in early trade on Wednesday, taking cues from the overnight rally in the US stocks. Traders will also await the release of US CPI print for April later Wednesday, which will provide fresh clues about the Federal Reserve's policy.
The Nikkei 225 was trading 280.31 points or 0.73% higher at 38,636.37, and the S&P ASX 200 was 41.90 points or 0.54% up at 7,768.70 as of 06:35 a.m. The Kospi was 3.13 points or 0.11% higher at 2,730.34.
On Wall Street, share indices ended higher, shrugging off producer price index data on Tuesday due to a big-tech rally, according to Bloomberg.
The S&P 500 Index and Nasdaq Composite rose by 0.48% and 0.75%, respectively, as of Tuesday. The Dow Jones Industrial Average rose by 0.32%.
Key Levels
US Dollar Index at 105.02
US 10-year bond yield at 4.44%
Brent crude up 0.40% at $82.71 per barrel
Nymex crude up 0.49% at $78.40 per barrel
Bitcoin was up 0.16% at $61,677.87
Rupee Update
The Indian rupee closed flat on Tuesday amid a marginal rise in crude oil prices and a firm US dollar index.
The local currency ended at Rs 83.51 against the dollar, according to Bloomberg data.
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