Markets witnessed intense selling after the sell-off in global markets forced the Nifty to breach key turnaround support of 16123 to end near 15800 closer to March 2022 lows.
With the recent decline, the Nifty 50 Equal Weight index has thrown up a ‘Bullish Flag’ setup with an upside potential of 20%.
We thus expect the Nifty 50 to trigger a major reversal on close above 16123. Expect recovery to resume from 18th May after LIC listing comes into the picture as most of the domestic liquidity already squeezed out due to LIC issue will come back into the system.
A ‘Flag’ formation often arises in Wave 4 setup and hence is followed with a significant upside later on in a quick span of time.
Expect the market to open on a positive note because of the smart recovery in the global markets after a fall in the last few sessions. US markets recovered from the intra-day low while Asian markets climbed up by 1-2%.
SGX Nifty is up by 204 points or 1.3%. Oil advanced 3% to $109/bbl, gaining for the third day after another tumultuous week of trading as investors weigh the prospect of a European Union ban on Russian crude imports and uncertainty over China’s virus resurgence.
Nifty 50 Index & Spread of Nifty50-Nifty500 Index
Stocks to watch
Positive Read through
- Tata Motors Q4 weak but better than estimates, JLR margin 12.6 pct vs expected 10 pct
- Bharti Airtel- added 22.5 lac subscribers in March, the highest additions since June 2021
- Reliance Inds- Jio added 12.6 lac subscribers in March
- Siemens- earnings in line with estimates, order inflows and order book strong
- Apollo Tyres- earnings in-line, revenue up 11 pct, Europe margin up 30 bps YoY
- Sun Pharma received a USFDA nod for generic Mesalamine extended-release capsules
- RBL Bank- all-time high NIM of 5.04 pct, CASA ratio at 35.3 pct vs 31.8 pct
Negative Read through
- L&T- Revenue in-line, margin and profit misses estimates, order inflow growth guidance at 12-15 pct
- HDFC AMC- deleted from MSCI India Large-cap index
- Voda-Idea lost 28.18 lac subscribers in March
- Honeywell Automation- margin down 610 bps, profit slips 30 pct YoY
A financial planning platform where you can plan all your goals, cash flows, expenses management, etc., which provides you advisory on the go. Unbiased and with uttermost data security, create your Financial Planning at Rs99/-
Disclaimer: The views shared in blogs are based on personal opinions and do not endorse the company’s views. Investment is a subject matter of solicitation and one should consult a Financial Adviser before making any investment using the app. Making an investment using the app is the sole decision of the investor and the company or any of its communication cannot be held responsible for it.