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Indian Indices: Asian indices opened flat to marginally weak as profit booking before the weekend was on the cards. With most indices trading at new highs, consolidation would be in order for the next week. Oil weakness saw Energy stocks decline while Financials were seeing buying.

Nifty saw a sharp short covering led rally, which saw the index scale new highs led by Bank Nifty which sent the bears scurrying for cover. The Sensex closed higher by over 450 points with huge frontline buying and even underperforming mid-caps seeing huge buying. For today expect consolidation with mid-caps seeing more catch up on the upside while Nifty remains range bound near 9500.   

The BSE Sensex is currently trading at 30868.63, up by 118.60 points or 0.39% after trading in a range of 30745.57 and 30884.18. There were 20 stocks advancing against 9 stocks declining on the index, while one stock remained unchanged. The broader indices were trading in green; the BSE Mid cap index surged 1.15%, while Small cap index was up by 1.19%.

The CNX Nifty is currently trading at 9544.95, up by 35.20 points or 0.37% after trading in a range of 9495.40 and 9545.55. There were 33 stocks advancing against 17 stocks declining on the index, while one stock remained unchanged.

Technical view: Nifty scaled 9500 and now finds resistance closer to 9550 while 9450 will act as strong support. Bank Nifty also closed well above 23000 with 23350 now acting as resistance while 22850 will act as strong support.

LT (BUY Above 1770 with Stop Loss at 1749 for Target of 1810): The stock has been stuck in a narrow trading range for past one month, it also broke down during the week but has recovered sharply and ended with strong gains in previous trade. Finally the stock has broken out from a Flag Pattern on the daily chart. The price outburst has been accompanied with smart uptick in volumes and also other momentum oscillators indicate that the momentum is here to stay.

May Rollover Snippets     

Markets were resilient in May F&O series, as whipsaw movement pushed the market and enabled it to foray into uncharted territories. Nifty and Bank Nifty crossed its lifetime high and closed above 9500/23000 on EoE basis for the first time ever. Bank Nifty Index outperformed Nifty Index by ~1% as the call option writers in both the indices were taken for a toss on the last day of expiry. Huge short covering was witnessed in OTM Nifty and Bank Nifty Index options that propelled markets to a newer height. Long gamma positions were the flavor of the series.

DIIs continued its buying spree posting a buying figure to the tune of ~Rs 3.7k Cr. FIIs long/short index futures ratio stood above 2x throughout the series indicating of a positive bias. Rollovers of Nifty/Bank Nifty stood at 74% / 61% (2.04 Cr/32 Lakh shares) as against 66%/77% (2.08 Cr/34 Lakh shares). Rollovers for Nifty and Bank Nifty were lower in terms of open interest vis-a-vis last month. Based on analysis of the mentioned data, a positive start in Nifty can be expected up to the immediate resistance level of 9600. India Vix index continues to tumble testing new lows. On the options front, June series start with the highest open interest put strike at 9300 strike (3.8mn shares) and maximum call strike at 9600 strike (3.39 mn shares).

Nifty Movers:  The top gainers on Nifty were Tata Steel up by 4.70%, AurobindoPharma up by 2.79%, Asian Paints up by 2.38%, Yes Bank up by 2.35% and Hindalco up by 2.31%. On the flip side, Indian Oil Corporation down by 3.18%, Cipla down by 2.75%, BPCL down by 2.39%, TCS down by 0.88% and Tech Mahindra down by 0.61% were the top losers.

Top Sectoral& Stock Screening:  The top gaining sectoral indices on the BSE were Metal up by 2.35%, Basic Materials up by 1.44%, Telecom up by 1.17%, Power up by 1.14% and Auto up by 1.07%, while Oil & Gas down by 0.69%, Realty down by 0.31%, Energy down by 0.23% and PSU down by 0.06% were the top losing indices on BSE.

On the global front: On the global front, Asian markets were exhibiting mixed trend at this point of time and some of the indices in the region are in red, heading for a lower finish for the week. Slump in crude oil prices have weighed heavily on the energy stocks. The US markets continued their upmove, extended their recent winning streak to six sessions.

Global Signals: Asian markets were trading mixed; Shanghai Composite rose 2.91 points or 0.09% to 3,110.74, Hang Seng gained 6.5 points or 0.03% to 25,637.28, Jakarta Composite increased 13.86 points or 0.24% to 5,717.30 and KOSPI Index was up by 14.87 points or 0.63% to 2,357.80.On the flip side, Nikkei 225 decreased 79.48 points or 0.4% to 19,733.65, Taiwan Weighted dropped 25.93 points or 0.26% to 10,082.56 and FTSE Bursa Malaysia KLCI was down by 1.46 points or 0.08% to 1,772.50.