Before the market starts on Tuesday, May 14, here’s everything you need to know: Gift Nifty Pre- Market suggests a strong start; Zomato shares will respond to Q4 Results; Watch out for these crucial Nifty and Bank Nifty levels.
Pre-market stock news for Tuesday, May 14:The NSE Nifty 50 was able to hold above the 100-DMA (Daily Moving Average) for the third consecutive trading session thanks to yesterday’s strong intraday rise.
The market might try to expand on its gains in the face of encouraging signals from Asian counterparts. However, the US Federal Reserve Chairman Jerome Powell’s address and the inflation statistics from India and the US will take centre stage.
Retail inflation in India eased to 4.83 per cent in April, even as food prices continued to surge. The data was release on Monday, post market hours.
Zomato Ltd
According to Tata Asset Management’s Senior Fund Manager-Fixed Income, Akhil Mittal, the CPI figures were expected, hence they might not have a significant effect on markets or policy.
Gift Nifty futures quoted at 22,239 at 7:00 AM, indicating a slightly positive opening for the Nifty 50.
Zomato will be a key topic among specific stocks following the company’s announcement of its fourth consecutive quarter of net earnings.
Aside from that, today’s Q4 results announcement from the following companies will be of interest: Archean Chemical, AIA Engineering, Andhra Paper, Apar Industries, Apollo Tyres, Aurionpro Solutions, Bajaj Electricals, BASF India, Bharti Airtel, Bharti Hexacom, BLS International, Butterfly Gandhimathi, Colgate Palmolive, Devyani International, Edelweiss Financial Services, Ganesh Housing Corporation, HP Adhesives, Ideaforge Technology, Jubilant Ingrevia, Kirloskar Brothers, Man Infraconstruction, Mirco Electronics, Oberoi Realty, OnMobile Global, Patanjali Foods, PVR Inox, Radico Khaitan, Shree Cement, Siemens, Thyrocare Technologies, and Zydus Wellness.
Trading Strategy for Tuesday, May 14 – Should you be a buyer or seller today? Here’s what market experts recommend:
Osho Krishan, Sr. Analyst – Technical & Derivative Research at Angel One recommends to remain cautious amidst the rise in volatility, which may be deceptive and could trap traders on either side. He adds that traders should refrain from aggressive overnight bets, and maintain exclusivity with stock selection.
On the level-specific front, Osho expects support for the Nifty around 22,000 – 21,900, followed by the sacrosanct support of the 89-DEMA around 21,800 zone. At the higher end, 22,200-22,300 is likely to act as intermediate resistance, and a sustainable surpass could only trigger a fresh round of longs in the system.
Analysing the F&O data, Ashwin Ramani, Derivatives & Technical Analyst of SAMCO Securities, reveals that both the 21,800 & 21,900 Strikes saw strong put writing. The Nifty has formed a hammer pattern on the daily chart, which is considered to be a bullish reversal signal. If call writers (Bears) exit from the 22,000 Strike, then Nifty is likely to move higher.
Echoing similar terms, Om Mehra, Technical Analyst of SAMCO Securities, said the Nifty has formed a hammer candlestick pattern at the support of its rising trendline on the daily chart, signaling a potential reversal.
The Nifty may trade within a broader range of 21,950 to 22,250 in the coming sessions. While the Nifty closed above its 100-day Moving Average (DMA), but needs to close above the crucial level of 22,300, to confirm a bullish stance to continue, Om Mehra added.
Bank Nifty halted its eight-session losing streak, showing resilience as it formed a morning star pattern on the hourly chart and rebound from lower levels, closing the session at 47,754. Currently, Bank Nifty is positioned near a crucial rising trendline. The daily Relative Strength Index (RSI) stands at 46 levels. Immediate resistance remains at 48,000; if crossed, we expect a rally till 48,250-48,300, the analyst concluded in the note.
Similarly, Neeraj Sharma, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates suggested that as per the hammer candlestick pattern, as long as the Nifty holds the support of 21,820, the relief rally will continue. The 21-DEMA is placed near 22,315, which will act as an immediate hurdle for the index. Thus, for the short term, we expect a pullback towards 22,300 levels. If the index sustains above 22,315, the pullback rally might test 22,500 levels.
Global Markets
While investors awaited US inflation data and Fed Chair Powell’s speech, the Dow Jones ended its seven-day surge overnight, leaving the US market barely altered.
The US 10-year note benchmark’s yield decreased by 1.6 basis points to 4.489 percent.
Taiwan and the Nikkei each saw gains of more than 0.5% this morning in Asia. Kospi was not elevated. By reducing the amount of Japanese government bonds it pledged to buy on a regular basis, the Bank of Japan on Monday gave the markets a hawkish signal.
Stay Connected With us: Siasatpro.com
Recent Comments