Going into Tuesday’s monthly expiry session, the bulls would definitely be the happy campers, as not only did the Nifty close above the mark of 24,000, it managed to hold on to gains through the session, every intraday dip got bought into and the index also managed to close at the day’s high.
In case a deal does end up getting announced between the US and Iran, and oil prices fall further, that would further fuel sentiments on Dalal Street. Further appreciation in the currency and a fall in bond yields is also helping sentiments, particularly those surrounding PSU banks.
Of course, there will always be a lingering risk of talks collapsing, oil reversing all of those losses and all the gains being reversed. But for now, the bulls would continue to hope, that the former is something that materializes and not the latter, considering the recent developments.
With the Nifty now having closed above the mark of 24,000, three important levels on the upside come into play, those being 24,253, 24,356, and 24,482, which are the intraday highs of May 8, May 6, and May 7 respectively. Then of course, comes the big level, the recent swing high of 24,601, which the index had surged to on April 21, before reversing course.
Tuesday’s session will see stocks like RVNL, Amara Raja, Aditya Birla Fashion and Retail, Awfis Space Solutions, among others will be reacting to their results that were reported after market hours on Monday.
Companies like Aequs, AIA Engineering, AstraZeneca Pharma, Bayer, Camlin Fine Sciences, Firstcry, Gandhar Oil, GIC Re, IRCTC, JK Tyre, Landmark Cars, ONGC, among others will be reporting their results on Tuesday as well.
Key Levels To Watch
“Nifty is now advancing towards the next resistance of previous opening down gap of May 8 at 24,126 levels and further resistance is placed around 24,300 levels for the short term. Immediate support is placed at 23,850,” Nagaraj Shetti of HDFC Securities said.
Sudeep Shah of SBI Securities believes that the 23,930 – 23,900 zone will be an immediate support for the Nifty, while 24,200 on the upside will have a crucial resistance zone. He expects a sustained above 24,200 could take the Nifty further higher towards the 24,350 mark.
The Nifty Bank had closed at the higher end of the 53,000 – 54,000 range on Friday, managing a close above 54,000, paving the way for a move higher towards the 54,500 mark. However, the index outperformed the street’s own expectations, crossing not just 54,500, but convincingly closing above the mark of 55,000 as well.
“On the downside, the 54,900 – 54,600 zone, aligned with the 38.2% Fibonacci retracement, remains the immediate support. On the upside, 55,600, followed by 56,000, remains the next resistance zone,” Om Mehra of SAMCO Securities said.
