Join Shivangi Sarda from the Motilal Oswal Research Desk as she delves into the latest market trends for Friday, May 31st, 2024. This episode covers technical and derivatives analysis, FII activity, index actionable strategies, and sectors & stocks to watch. Get a comprehensive overview of Nifty's performance, volatility impacts, and key stock movements. Stay informed and ahead of the market with expert insights and actionable advice.
[00:00:00] Welcome to Indian Market in Minutes from the Motilal Oswal Research Desk.
[00:00:05] We will be covering technical and derivatives, FII's activity, index actionable, sectors
[00:00:11] and stocks to watch out.
[00:00:12] So stay tuned till the end.
[00:00:14] Hey this is your host Shivangi Sardar and to start with our first segment for Friday,
[00:00:29] 31st May 2024, Nifty Index opened negative and dropped in the first tick itself which
[00:00:35] was followed by some range bound move in the first half.
[00:00:39] Then the second half witnessed sustained weakness and it broke all immediate support zones to
[00:00:44] touch a fresh low of 22,417 levels.
[00:00:49] The last hour saw a quick recovery and it closed with losses of around 220 points.
[00:00:55] India VIX is at 24.2, Volatility spiked above 26 during the week and has caused discomfort
[00:01:01] to the bulls.
[00:01:02] Now this VIX needs to fall below 16-18 zones for stability and the smoother ride of the
[00:01:08] market.
[00:01:09] Nifty put call ratio increased to 1.12, rise in this put call ratio was due to unwinding
[00:01:15] of positions on the monthly expiry.
[00:01:19] Volatility is increasing ahead of the election phases which could cause a bumpy ride in
[00:01:23] the market for the time being.
[00:01:26] Since it's the beginning of the new series, option data is scattered at various strike
[00:01:30] prices.
[00:01:31] So option data suggesting a broader trading range in between 21,800 to 23,100 while immediate
[00:01:39] range is in between 22,100 to 22,800.
[00:01:44] Moving on to the second segment, in the equity cash market, FII's were net sellers
[00:01:49] to the tune of 3,050 crores while DII's were buyers worth 3,433 crores.
[00:01:57] FII's index long short ratio decreased to its 7 months low at 13%.
[00:02:04] Going ahead with the index actionable, derivatives data and price setup suggest till Nifty holds
[00:02:10] below 22,500, weakness could be seen towards 22,350 then 22,222 whereas hurdles are seen
[00:02:19] at 22,600 then 22,750.
[00:02:23] While Bank Nifty has to continue to hold above 48,500 to continue the outperformance and a
[00:02:30] bounce towards 49,250 then 49,500 while a hold below the same could see some weakness towards
[00:02:38] 48,250 then 48,000 levels.
[00:02:42] And finally talking about the sectors and stocks to watch out, positive stance was
[00:02:47] seen in auto and selective banking stocks while all the other sectors remained quite
[00:02:53] volatile.
[00:02:54] So stocks to keep on radar, auto index is holding well at its lifetime high levels despite the
[00:03:00] volatility of the market.
[00:03:02] Motherson is one such stock which is looking quite promising.
[00:03:06] Dixon is getting ready for the next leg of rally.
[00:03:09] SBI and Axis Bank from the banking space is showing some revival.
[00:03:14] Bharti et al is showing good support-paste buying.
[00:03:18] Wish you a great trading day ahead.
[00:03:20] For more such detailed analysis, don't forget to follow this podcast.
[00:03:24] This is Shivangi Sarda signing off.