The Nifty 50 showed a smart update of 115 points during the last trading hour to end in a good location on June 2, driven by auto, metals, pharma and selected bank shares.
The index formed a bullish candle on the daily charts as the closure was higher than the opening levels. Experts feel that the index needs to exceed 15,660 levels of solid climbs to 15,850 levels.
Mazhar Mohammad from Chartviewindia advised traders not to take sides in the index but given the recommended rate of decline in the future, the potential for stocks, he said, could be considered.
A tense situation below 20 marks always supports the market. India VIX is down 1.04 percent from 17.38 levels to 17.21. “The collapse of VIX could increase the strong market pressure to move to a new high point,” said Chandan Taparia of Motilal Oswal.
The Nifty50 opened below 15,520.35 and increased losses to hit the low day by 15,459.85, but showed a good recovery in trading late closing 1.3 points above 15,576.20.
“Nifty50 cleverly recovered from a low intraday of 15,459 levels before signing the session with an incomplete profit that led to a bullish candle. Even if this is achieved, the near term will remain sidelined between 15,650 – 15,400 levels unless Nifty registers more than 15,660 levels, “Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory at Chartviewindia.in.
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“Each step requires you to exit this journey with a new breakout in any direction,” he said.
If the bulls were able to push the index above 15,660 by closing where the higher target could be expected to close to 15,850 and closing below 15,374 could result in a corrective decline with initial targets reaching 15,200 levels, according to him.
Prior to the election, Put’s open interest rate was seen at 15,000 following a strike of 14,500 while a high interest rate of Call open interest was seen at 16,000 following a strike of 15,500. Minor Call recordings were seen at 16,100 and 16,000 strikes and Put recordings were seen at 15,200 followed by 15,100 strikes.
The option data mentioned above indicated that Nifty50 could see the fastest trading range of 15,300 to 15,800 levels.
Bank Nifty opened a negative of 35,271.60 and despite facing opposition to the opening mark, the second half of the session saw strength. The bank index took support at 35,000 levels and closed the session with a minimum gain of 36.60 points out of 35,373.80.
The index forms a bullish candle in the daily rate. “Bank Nifty has to hold more than 35,250 to see a shift to 35,750 and 36,000 valleys while below, support is available at 35,000 and 34,750 levels,” said Chandan Taparia, Deputy President | Analyst-Derivatives at Motilal Oswal Services.
Ahead of the shares, “a bullish set has been seen at Motherson Sumi Systems, Adani Enterprises, Muthoot Finance, RBL Bank, Bharat Forge, Apollo Tires, Glenmark Pharma, Tata Power, Lupine, Canara Bank, ICICI Prudential Life, Piramal Enterprises, UPL, Voltas, “HPCL, IndusInd Bank, Marico, Ambuja Cement and Reliance Industries while weaknesses are evident in ITC, Dabur, Gail and Aurobindo Pharma,” said Taparia.
