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  4. NIFTY50 forms doji at 50-DMA, remains range-bound

NIFTY50 forms doji at 50-DMA, remains range-bound

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Upstox

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3 min read • Updated: May 8, 2024, 6:18 PM

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Summary

The NIFTY50 index closed near its 50-day moving average (DMA) for the second day in a row, forming an indecision candle. For the 9 May expiry, traders can watch the low and high of the doji (indecision candle) for further directional clues.

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NIFTY50 forms doji at 50-DMA, remains range-bound

After a negative start, markets consolidated near the day's low in a sideways session and quickly recovered from the day's low to close flat on Wednesday. Both the NIFTY50 and SENSEX ended the session flat, closing at 22,302 and 73,466 respectively.

Sectorally, Oil and Gas (+1.7%) and NIFTY Auto (+1.5%) were the top gainers, while Private Banks (-0.8%) and IT (-0.4%) were the laggards.

The technical structure of the NIFTY50 remains range-bound with short-term resistance at 22,500. The index has formed a doji candlestick pattern on the daily chart, indicating indecision among investors. As the doji is a neutral pattern, traders can watch for a close above or below the doji for further directional clues of the ongoing trend.

  • Top gainer and loser in NIFTY50: Bharat Petroleum (+2.7%) and Dr. Reddy’s (-3.2%)

  • The broader markets outperformed the benchmark indices, ending a three-day losing streak. The NIFTY Midcap 100 was up 0.7% and the Smallcap 100 was up 0.5%.

  • Top gainer in NIFTY Midcap 100: Bharat Forge (+15.9%)

  • Top gainer in NIFTY Smallcap 100: Hudco (+7.3%)

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Key highlights of the day:

🏍️Hero MotoCorp rose more than 2% after the company's Q4FY24 net profit jumped 18% YoY to ₹1,016 crore. This was driven by volume growth and new product launches.

🚀Bharat Forge jumped over 15% after the company's net profit for the fourth quarter of FY24 surged 59% to ₹389 crore. Strong defence export orders, growth in the overseas aluminium business and strong guidance for FY25 boosted investor sentiment.

🏦Canara Bank fell over 3% despite reporting an 18% (₹3,757 crore) jump in net profit for Q4 FY24. The sharp fall was on account of subdued loan growth guidance for FY25.

💰REC jumped over 5% after the company said that the RBI's recent proposal for additional provisioning for infrastructure projects will not affect the majority of its loans. Management said that most of the company's loans come with the government guarantee.

Top traded futures contracts

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Top traded stock options contracts

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4 trading insights from NIFTY 200🔍

📉Open = High (Bear power): Torrent Power, Ultratech Cement, HDFC AMC, M&M Financial and IndusInd bank

📈Open = Low (Bull power): PFC, Biocon, Petronet LNG, NMDC, Power Grid and Hindalco

🏗️Fresh 52 week-high: Bharat Forge, ABB, Siemens, United Spirits, Godrej Consumer and Marico

⚠️Fresh 52 week-low: Paytm, Berger Paints, Syngene International and Dalmia Bharat

And that's it for today's F&O recap! Get the full scoop on market trends and curated scans at https://pro.upstox.com/

See you tomorrow!