THE RALLY CONTINUED FOR THE SECOND DAY; THE NIFTY CLOSED ABOVE 18400 RESISTANCE

NIFTY:

The NIFTY opened at 18368.35 with a gap up of 47 points. Initially, the Index saw a down move, filled the gap, and then found support there around the 18300 level. Prices have recorded its intraday low at 18333.15 within the first 10 minutes of trading and then started moving higher. The index took a pause in the afternoon and then again resumed on the upside. Prices have further moved up which lasted till the end and recorded its intraday high at 18508.55. The index finally closed at 18499.35 with a gain of 178.20 points or 0.97% up. All the sectoral indices have performed well today and closed with gains led by MEDIA FMCG, IT, METAL, PHARMA, and REALTY also did well and gained more than 1%. a trading range inside the 18100-18400 zones. This range has seen a decisive breakout on the upside. The breakout is giving us a pattern target of around 18700.The short-term trend is up now which was sideways before. The support is now visible around 18200 while the resistance may emerge around 18600 which is very near. We should look for buying only as far as the index is trading above the breakout point at 18400.

BANK NIFTY:

The BANK NIFTY opened at 43765.35 with a gap up of 86 points. Initially, the index moved lower and formed a trading range. Prices have consolidated for about two hours and then broke on the upside after recording it intraday low at 43588.80. The index rallied sharply for the rest of the day and broke above 44000 to record its intraday high at 44067.60. Prices have finally closed at 43996.50 with a gain of 317 points. PSU BANK has outperformed today, saw a sharp upside move, and closed with a gain of 1.21% PVT BANK has also moved up today and ended with a gain of 0.78% Within the index, in terms of points, ICICI BANK contributed the highest on the upside while BANDHAN BANK contributed the lowest. Support is visible around 43400 while resistance is visible around the lifetime high recorded at 44150. Since the range is very narrow so we may see a breakout very soon.

TECHNICAL PICKS

DERIVATIVE PICKS

TOP DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• Benchmark indices ended higher on the first day of the June series with Nifty at 18,500. At close, the Sensex was up 629.07 points or 1.02 percentat 62,501.69, and the Nifty was up 178.10 points or 0.97percentat 18,499.30. About 1,879 shares advanced, 1,503 shares declined, and 138 shares were unchanged.

• Zee-Sony merger: NCLAT quashes NCLT order asking BSE, NSE to review approvals to the deal. NCLT had on May 11 directed the exchanges to reassess and validate the non-compete clause of the merger, which was approved by the Securities and Exchange Board of India.

• Grasim Industries posted a net profit of Rs 93.5 crore for the fourth-quarter, reflecting a whopping decline of 88.5 percent year-on-year from Rs 814 crore in the year-ago period. The net profit was also significantly below CNBC-TV18’s estimate of Rs 329 crore.

• Samvardhana Motherson Q4: Revenues jump 30%; Margins 170 bps higher. Earnings before interest, tax, depreciation and amortisation (EBITDA) is 60 percent higher at Rs 2,021 crore, while EBITDA margins improved 170 bps to 9 percent.

Source: Economic Times,  Indian Express, Business Today, Livemint, Business Standard, Bloomberg Quint

BOARD MEETINGS

Corporate Action

Disclosure in pursuance of Section 19 of SEBI (RA) Regulation 2014

Elite Wealth Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only information in making their investment decision and must exercise their own judgment before making any investment decision.

For analyst certification and other important disclosures, see the Disclosure Appendix, or go to www.elitewealth.in. Analysts employed by Elite Wealth Limited are registered/qualified as research analysts with SEBI in India.( SEBI Registration No.: INH100002300)

Disclosure Appendix

Analyst Certification (For Reports)

Kiran Tahlani, Elite Wealth Limited, kirantahlani@elitestock.com

The analyst(s) certify that all of the views expressed in this report accurately reflect my/our personal views about the subject company or companies and its or their securities. I/We also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Elite Wealth Limited.

As to each individual report referenced herein, the primary research analyst(s) named within the report individually certify, with respect to each security or issuer that the analyst covered in the report, that:

(1) all of the views expressed in the report accurately reflect his or her personal views about any and all of the subject securities or issuers; and

(2) no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in the report.

For individual analyst certifications, please refer to the disclosure section at the end of the attached individual notes.

Research Excerpts

This note may include excerpts from previously published research. For access to the full reports, including analyst certification and important disclosures, investment thesis, valuation methodology, and risks to rating and price targets, please visit www.elitewealth.in.

Company-Specific Disclosures

Important disclosures, including price charts, are available and all Elite Wealth Limited covered companies by visiting https://www.elitewealth.in, or e-mailing research@elitestock.com with your request. Elite Wealth Limited may screen companies based on Strategy, Technical, and Quantitative Research. For important disclosures for these companies, please e-mail research@elitestock.com.

Options related research:

If the information contained herein regards options related research, such information is available only to persons who have received the proper option risk disclosure documents. For a copy of the risk disclosure documents, please contact your Broker’s Representative or visit the OCC’s website at https://www.elitewealth.in

Other Disclosures

All research reports made available to clients are simultaneously available on our client websites. Not all research content is redistributed, e-mailed or made available to third-party aggregators. For all research reports available on a particular stock, please contact your respective broker’s sales person.

Ownership and material conflicts of interest Disclosure

Elite Wealth Limited policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst’s area of coverage. Analyst compensation: Analysts are salary based permanent employees of Elite Wealth Limited. Analyst as officer or director: Elite Wealth Limited policy prohibits its analysts, persons reporting to analysts from serving as an officer, director, board member or employee of any company in the analyst’s area of coverage.

Country Specific Disclosures

India – For private circulation only, not for sale.

Legal Entities Disclosures

Mr. Ravinder Parkash Seth is the Managing Director of Elite Wealth  Ltd (EWL, henceforth), having its registered office at Casa Picasso, Golf Course Extension, Near Rajesh Pilot Chowk, Radha Swami, Sector-61, Gurgaon-122001 Haryana, is a SEBI registered Research Analyst and is regulated by Securities and Exchange Board of India. Telephone: 011-43035555, Facsimile: 011-22795783 and Website: www.elitewealth.in

EWL discloses all material information about itself including its business activity, disciplinary history, the terms and conditions on which it offers research report, details of associates and such other information as is necessary to take an investment decision, including the following:

1. Reports
2. a) EWL or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;

(b) EWL or its associates or relatives, have no actual/beneficial ownership of one per cent. or more in the securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance;

(c) EWL or its associate or his relative, has no other material conflict of interest at the time of publication of the research report or at the time of public appearance;

2. Compensation

(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;

(b) EWL or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;

(c) EWL or its associates have not received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months;

(d) EWL  or its associates have not received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months;

(e) EWL or its associates have not received any compensation or other benefits from the subject company or third party in connection with the research report.

3 In respect of Public Appearances
(a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
(b) The subject company is not now or never a client during twelve months preceding the date of distribution of the research report and the types of services provided by EWL

Provided that research analyst or research entity shall not be required to make a disclosure as per sub-clauses (c), (d) and (e) of clause (ii) or sub-clauses (a) and (b) of clause (iii) to the extent such disclosure would reveal material non-public information regarding specific potential future investment banking or merchant banking or brokerage services transactions of the subject company.
(4) EWL or its proprietor has never served as an officer, director or employee of the subject company;
(5) EWL has never been engaged in market making activity for the subject company;
(6) EWL shall provide all other disclosures in research report and public appearance as specified by the Board under any other regulations.