Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
The Indian market rallied more than 1% on F&O monthly expiry day. Nifty managed to close above 17200. The recovery in the market was led by FMCG, Oil & Gas and Financials stocks, while Media was the only sector ended in the red. Nifty midcap and small cap index were subdued as the action was concentrated on derivative stocks. Nifty ended the April series with the losses of 1.26% while Bank Nifty ended the series with the minor gains.
In Cash segment, FIIs continued their selling where they net sold worth Rs 38000 Cr during the April series till now. However, DIIs buying is helping markets where they net bought worth Rs 25000 Cr during the same period. FIIs selling is partially getting absorbed by DIIs. Declining shares outnumbered the advancing shares.
BOJ continued with dovish monitory policies. American market futures are trading with handsome gains at the time of this writing, suggesting buoyant opening tomorrow. On daily charts, nifty has formed higher top formation preceded by higher bottom, which indicates higher probability of markets extending the gains. Nifty has got strong support at 17050 levels, which is derived from upward sloping trend line adjoining 8th March 2002 low and 25th April 2022 Lows. Nifty longs should be held with the stop loss of 17050. On the upside 17414 can act as a resistance.