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Last Updated : May 27, 2019 07:10 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street | Decline in VIX suggests short term stability

The decline in VIX suggests that now short term stability and formation of the higher base is seen in the market, experts said, adding option band signifies a trading range between 11,600 to 12,100 zones.

 
 
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It was a historic week for Indian markets as both Sensex and Nifty50 hit fresh record highs, and investors' wealth rose by over Rs 6 lakh crore for the week ended May 24 as Mr. Market cheered the continuity of reform process and the end of political uncertainty, as Narendra Modi is set to become the Prime Minister for a second consecutive term.

The S&P BSE Sensex which touched a record high of 40,124.96 closed the week with gains of over 1,500 points or 3.97 percent while Nifty50 which hit a record high of 12,041 closed with gains of 437 points or 3.8 percent in the same period.

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The average market capitalisation of BSE listed companies rose from Rs 146.58 lakh crore recorded on May 17 to Rs 152.71 lakh crore on May 24 which translates into a rise of Rs 6.1 lakh crore in just 5 trading sessions.

The rupee on Friday rallied 49 paise to close at 69.53 against the dollar in line with a massive surge in domestic equities following a decisive mandate for PM Narendra Modi's BJP in the general elections.

On the provisional front, FPI were net buyers in Indian markets for Rs 2026 crore while DIIs were net sellers in Indian markets for Rs 195 crore, provisional data showed.

Big News:

Nifty forms a large bullish candle on daily as well as weekly charts

India VIX fell sharply by 15.12 percent to 16.46 levels. Volatility index corrected by 41 percent during the week from 28.08 to 16.46 levels.

During the week, it made a 44-month high of 30.18 but post the election outcome fell drastically to 16.45 levels.

The decline in VIX suggests that now short term stability and formation of the higher base is seen in the market, experts said, adding option band signifies a trading range between 11,600 to 12,100 zones.

Three levels: 11658, 11859, 12041

Max Call OI: 12500, 12000

Max Put OI: 11000, 11500

Technical View:

Nifty forms a large bullish candle on daily as well as weekly charts

India VIX fell sharply by 15.12 percent to 16.46 levels. Volatility index corrected by 41 percent during the week from 28.08 to 16.46 levels.

During the week, it made a 44-month high of 30.18 but post the election outcome fell drastically to 16.45 levels.

The decline in VIX suggests that now short term stability and formation of the higher base is seen in the market, experts said, adding option band signifies a trading range between 11,600 to 12,100 zones.

Three levels: 11658, 11859, 12041

Max Call OI: 12500, 12000

Max Put OI: 11000, 11500

Stocks in news:

Fortis Healthcare has reported a consolidated net profit of Rs 151.19 crore for the quarter ended March, as against a net loss of Rs 914.32 crore in the corresponding period of the previous fiscal.

Infrastructure company PNC Infratech has reported a 25 percent jump in standalone net profit at Rs 139.93 crore for the quarter ended March, helped by higher income.

Indraprastha Gas Ltd, which retails CNG to automobiles in the national capital and adjoining cities, Friday reported a 28 per cent rise in its March quarter net profit on the back of higher sales.

Technical Recommendations:

We spoke to Angel Broking and here's what they have to recommend:

HSIL: Buy| LTP: Rs. 286.85| Target: Rs 317| Stop Loss: Rs 269.40| Upside 10%

Raymond: Buy| LTP: Rs 852.20| Target: Rs 938| Stop Loss: Rs 804| Upside 10%

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on May 27, 2019 07:10 am
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