05.06.24-Wednesday, 08.50 am 

Good Morning all .....

What has happened yesterday? Nifty Index, as expected and written, opened on a negative note at 23179.50; our expected opening band 23230-23160-23110, on the opening move, made a day high 23179.50; further it moved down; made a day low 21281.45 and closed on a negative note at 21884.50 with intra huge loss 1379.40 points, i.e., -6.30%.

What will happen today? 

Nifty Index: Today, Nifty Index may open on a positive note near 21930-22005-22110 levels; if open, trade and sustain above 23110 then, the index may test 22230-22285-22340-22415-22485-22535-22575-22620-22705 levels. On the other hand, the immediate support lies at 21820-21725 if, the Index moves below 21725 then, it may try to re-visit 21645-21505-21475-21370-21280-21170-21140-21090 levels.

Special Mention: Yesterday, Nifty Index opened on gap down, the General Election results disappointed the stock market traders, dragged the Nifty Index nearly 9%, made a low 21281 and intra pull back lifted the index and closed above our threshold support level i.e., 21820. Today, we can expect a volatility due to political uncertanity to form the Government, the Nifty index must open and sustain above 22065-2227-22415 then, it may continue the pull back rally to re-test 22735--23110-23338 levels. On the other hand, the immediate support seen at 21820-21130, further weakness below 21130 then, the Index may try to re-visit 20560-20200 levels in the near term. Let see how the Index opens today near 21930-22000-22110 levels. 

Nifty Bank Index: Yeserday, Nifty Bank Index opened on a negative note at 50667.05; on the opening move, it made a day high 50667.05; thereafter, it moved down, made a day low 46077.85 and closed on a negative note at 46928.60 with an intra huge loss 4051.35 points, i.e., -8.63%, today Nifty Bank Index must move and trade above 47270-47495 levels; if to do so, then it may try to test 47640-47830-48000-48300-48600-48910 levels. On the other hand, any weakness near 47270-47495 further, it moves below 46900-46650 then, the Index may re-visit 46500-46350-46220-46080-45830-45660 levels.

FII's & DII's Funds Flow: Yesterday, FIIs turned as a net seller, they sold on the net basis to the tune of Rs.12436.22 Cr. On the other hand, DIIs also turned as a net seller, they sold on the net basis to the tune of Rs.3318.98 Cr. 

INDIA's Macro Data:-

On 03rd Jun'24, the HSBC Manufacturing PMI data for the month of May'24 released, it moved down to 57.50% from 58.80% (Apr'24). Likewise, the HSBC Services PMI data for the month of Apr'24 released on 06th May'24, it moved down to 60.80% from 61.20% (Mar'24).

The RBI MPC meet held on 05th Apr'24-Friday, the MPC maintained status quo in the Repo rate without changing the interest rate i.e., 6.50%. 

GDP data for the Q4 ending Mar'24 released on 31st Mat'24-Friday, the GDP has moved down to 7.80% Vs.8.40% (Q3-Dec'23).

IIP data for Mar'24 released on 10th May'24-Friday, the Industrial production has come down to 4.90%; when compared to the Feb'24 level, i.e.,5.60%. 

Annual Inflation data for Apr'24 released on 13th May'24-Monday, the inflation has come down to 4.83% from Mar'24 level i.e., 4.85%.

WPI Inflation data for the month of Apr'24 released on 14th May'24-Tuesday, it has gone up to 1.26% as against the Mar'24 level i.e.,0.53%.

Wishing you for a safe, secured and profitable trading.

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The writing in the above daily market update should only be construed as guidance. I assert that any business or investment decisions should not be based purely on the information presented in the daily market update. As a Research Analyst, I will not be responsible for any losses incurred by a visitor/investor/client, as a result of decisions made based on any information given in the daily market update.

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