Market Wizard

*Good Morning & Welcome to Friday’s trading action at Dalal Street dated 28th of May 2021.*

Overnight, the Dow Jones edges higher as Jobless claims kept sliding.

In early action, SGX Nifty is seen inching higher indicating yet another positive session for our stock markets. Metal stocks could rebound as overnight prices of various metals were up 3-5%. Hindalco & Jindal Steel & Power preferred bets in the metal space.

Lifting optimism are reports that President Joe Biden plans to propose a $6 trillion budget for fiscal 2022. The budget, according to the New York Times, would take the U.S. to its highest level of federal spending since World War II.

*Long story short: Dalal Street to enjoy yet another boisterous day of gains.*

*7 AM GLOBAL UPDATE:*

• SGX Nifty (+56, 15470)
• DOW JONES (+142, 34465)
• NASDAQ (-2, 13736)
• BOVESPA (+377, 124367)
• NIKKEI (+455, 29004)
• HANG SENG (+106, 29219)

Instrument CMP Bias
OIL $67.20 a barrel Positive
GOLD $1899 Positive
Silver 27.93 Positive
USD/INR 72.68 Negative

*INSTITUTIONS:*

• FII: 660.90 Cr
• DII: +112.38 Cr

*THEME OF THE DAY:*

• Global: Positive
• FII: Negative (-660.90 Cr)
• DII: Positive (+112.38 Cr)
• F&O: 15257-15557 zone
• Trend: Up
• Sentiment: Bullish
• Technicals: Higher high/low
• Theme: Nifty’s all time high at 15432 mark.

*All ABOUT NIFTY & BANK NIFTY’ CRUCIAL LEVELS*

NIFTY (CMP 15338):

• SUPPORT: 15257/15057
• RESISTANCE: 15432/16001
• RANGE: 15257-15557
• BIAS: Positive.

BANK NIFTY (CMP 35095):

• SUPPORT: 34410/33057
• RESISTANCE: 36497/37709
• RANGE: 34751-36751
• BIAS: Positive.

*THEME OF THE DAY:*

Fresh data out Thursday in the U.S continued to paint a rosy picture of the American economy's resurgence. Weekly jobless claims declined yet again, with filings for the week ended May 22 lower by 38,000 claims to 406,000, easily coming in under estimates for 425,000.

Our *call of the day* which suggests investors to keep holding your investments, and then returns will follow. Do not hoard cash citing overbought technical conditions. Most importantly, when there are corrective declines —— ‘Simply Buy More’.

Technically speaking, the ongoing bullish theme is likely to prevail as long as Nifty stays above its biggest support at the 15050 mark. We expect, the benchmark Nifty to easily gallop to 15432 mark and then all bullish bets at magical 16000 mark. The price action for Nifty for this week’s trade is suggesting that we are likely to see a 15151- 15551 range in near term with buy on dips as the preferred strategy

Our *chart of the day* is bullish on stocks like INDUSIND BANK, BANK OF BARODA and HINDALCO with an interweek/intermonth perspective.

*SHOW ME THE MONEY: INDUSIND BANK (CMP 1007):* A potential entrance exists at CMP, and on dips between 971-975 zone, with targets at the 1060 mark. Holding Period: 3-5 days. Place stop below its key support at 951.

*Earnings to trickle in today:* MAHINDRA & MAHINDRA, GLENMARK PHARMA, IPCA LABORATORIES, 3M INDIA, ADITYA BIRLA FASHION AND RETAIL, DEEPAK FERTILISERS, MAX HEALTHCARE INSTITUTE, SUMITOMO CHEMICAL INDIA.

• Saturday, 29th May 2021: BANK OF BARODA, DIVIS LABS.

*Now, here are other key things to know before today’s market opens:*

• The Reserve Bank of India, in its annual report, has issued caution over the meteoric rise in stock prices at a time when the country’s gross domestic product (GDP) has contracted. RBI is of the view that the risks are particularly high as the markets trade ahead of the fundamentals.

• Lockdown in Maharashtra will be extended beyond June 1 and subsequently relaxed in phases, chief minister Uddhav Thackeray said on Thursday.

• India’s largest pharma firm, Sun Pharmaceuticals, posted a 124% year-on-year rise in net profit in the fourth quarter of the 2020-21 fiscal to Rs 894.1 crore. When compared to Rs 636 crore net profit in Q4FY19, the rise is around 40%.

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