Major Benchmark Indices extended their decline on second session of the week in Indian Stock Market. Nifty 50 opened higher and kept falling through the day. At close, Nifty was down by 63.10 points or 0.44% closed at 14,296.40. The broader markets did better with the S&P BSE MidCap and S&P BSE Small Cap indices both ending 0.5% higher. On the options front (April 22, 2021 expiry), across the board writing was seen in the call option strikes as Nifty trended lower.
Indian Stock Market Summary
Even though major benchmarks indices Sensex and Nifty pared their early gains and were trading on a subdued level on Tuesday, the same was not the case for pharma stocks as they were upbeat despite rising Coronavirus cases which dampened investors confidence for equities. Cadila was the top gainer skyrocketing by 7.2% followed by Dr. Reddy’s Lab surging by 4.7%. Nifty FMCG stocks were engaged in subdued trade amid volatile markets. Tata Consumer Products and Jubilant Food works gained over 2.5% each to lift the performance of the sector. Nifty Metal Index survived volatile trade to surge almost 0.8%. Adani Enterprises, Sail, JSW steel were also up almost 1%. Indian IT company stocks were broadly bearish after technology stocks globally underperformed as the benchmark 10-year Treasury yield jumps over 1.6%.
The 30-share BSE Sensex closed at 47705.80 down around -243.62 points, or -0.51%, over the previous day. Nifty ended down around -63.10 points or -0.44% to close at 14296.40. Bank Nifty closed at 31112.70, closed with a loss of -95.70 points. Indian Volatility Index plunged -0.27% percent to close at 22.42. Market breadth ended in favor of advances. Around 1075 stocks on the NSE closed with gain, while 824 stocks ended with a loss, and 112 shares are unchanged.
Technical View of Nifty & Bank Nifty
Nifty once again failed to hold on to higher levels facing selling pressure. However, the broader market did well on April 20. It took support again from 14207. However, repeated testing of 14200 is not a good sign. 14200-14505 is the new brand for the Nifty for the near term. A breach of 14200 again could result in accelerated selling.
As per technical levels, resistance laid down at 14,550 and support at 14200. Sustain above 14,550, it may test start a rally for 14750–14850 on the upside. Below 14200 marks, the price may correct further to 14000—13900 on the downside.
According to Open Interest data, the maximum CE open interest stand at 14500 followed by 14400 and the maximum PE at 14200 indicates a range of trading in the upcoming session. Valuation wise maximum CE & PE stand at 14300 & 14200 is a crucial level for the index.
Nifty Futures strategy for the day
Resistance comes at 14500 and support lays down at 14200.
Strategy – Fresh sell below 14200 for the target of 14000—13900 or else it could test its resistance level of 14500—14650 on the upside.
Nifty Bank underperformed the Nifty index by ~0.2% with both the indices closing marginally lower. Banking stocks underperformed. The index gained with a loss and closed around 31112.70 (Spot level). Technically more selling pressure may come below 31000 levels. Fresh buying can only be done at 32000 levels for the upside target of 32800—33200 levels.
Nifty Bank Futures strategy for the day
Resistance at 31800 and Support at 30800
Strategy – Either buy above 31800 for the target of 32500—33000 or sell below 30800 for the downside target of 30000.
Top Stocks Recommendations for Today (22nd April 2021)
Price has been following the Butterfly pattern. Technically, It looks good for the upside targets of 800 levels.
Trader may initiate long position for above mentioned levels with a stop loss of 680.
Price has been holding a lifetime breakout on a closing basis. Technically, It looks good for the next 5% to 35 % move on the upside.
Trader may initiate long position for above mentioned levels with a stop loss of 513.
The stock is trading in a range and ready for a fresh breakout. Hurdle at 528, break and close above 528 will take it to 548 and then to 560 levels in days to come. Support and stop loss below 508.
Support and stop loss below 508 on a closing basis. Trade with the levels only.
Traders can trade safely in Nifty, Bank Nifty and given stock recommendations with levels only. More will update during the market hour.
We are a SEBI registered investment advisor. The above free information is for education/knowledge purposes. Read disclaimer on our website before investing.