Weak global cues prompted a late-session selloff that resulted in a negative closing trade session for the Indian stock market indices, Sensex and the Nifty 50. Due to Maharashtra Day on Wednesday, May 1, the stock market was closed.
Sensex and Nifty both experienced one percent gains during the month. The BSE Midcap index increased by 7% in April, while the Smallcap index had a 10% increase. By contrast, the mid and small-cap categories saw strong advances.
“Equity benchmark overcame Fridays losses and headed higher on Monday to start the week on optimistic note. The BankNifty index spearheaded the rally leading benchmark Nifty to gain 1% to close at 22643. A/D ratio was almost flattish for the session as broader markets consolidated recent gain. Our positive stance only gets substantiated by recent price behaviour as dips are attracting elevated buying demand. As we progress through earnings and general election phases, higher high-low formation with strong domestic flows makes us reiterate our positive stance with Nifty target of 23400 by General election outcome with strong support at 21700,” stated Jay Thakkar, research analyst at ICICI Direct.
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Regarding options, the highest writing call for the current series was 85 strikes. Given that the stock has already closed above its call base, short covering is probably going to give it more impetus. Furthermore, there was a lot of Put writing at ATM and OTM strikes, indicating that there was limited downside expectation.
Jubilant Foodworks has been continuously failing the overall market as a result of the persistent demand to sell through delivery. Furthermore, the 450 Call strike has a large amount of open interest and is anticipated to serve as a key resistance level.
As a result, we think that during the upcoming sessions, the stock will rise around $414.
Disclaimer: The opinions and suggestions expressed here are those of specific analysts or brokerage firms. It is advisable to consult with qualified specialists before to making any financial decisions.
