Indian Stock Market was under selling pressure, amidst fear of additional restrictions on account of rising Covid cases, bears took the charge since the start and ended the day with a sharp cut of nearly 2%. Banking stocks were the worst hit. Bank Nifty underperformed the benchmark index Nifty 50. On the options front (March 25, 2021 expiry ), across the board writing was seen in the call option strikes as Bank Nifty trended lower.
Stock Market Summary
Nifty Pharma Index bucked the weak trend to gain over 1% and provide support to the weak markets. Heavyweights Cipla, Divis Lab, and Sun Pharma lifted the sector while AuroPharma and Alkem Lab were also bullish. Markets globally and in India as well are struggling as Covid-19 cases are going up globally and that is a major concern. Nifty Pharma however stayed clear of markets bears to emerge as hope amid the gloomy picture. Nifty Auto Index was under extreme pressure, tracking weak markets. The Index fell 1.75% markets as heavyweights like Mahindra & Mahindra and Tata Motors weighed in. Nifty PSU Bank and Nifty Metal were the worst-hit sectors on Wednesday’s trading session. Financial stocks like SBI, Axis Bank, and ICICI Bank were among the top underperformers.
The 30-share BSE Sensex closed at 49180.31 down around -871.13 points, or -1.74%, over the previous day. The Nifty ended down around -265.40 points or -1.79% to close at 14549.40. Bank Nifty closed at 33293.30, closed with a loss of 891.10 points. Indian Volatility Index surged +1.79% percent to close at 22.46. Market breadth ended in favor of bears. Around 1430 stocks on the NSE closed with a loss, while 457 stocks ended with a loss, and 358 shares are unchanged.
Technical View on Nifty and Bank Nifty
Nifty from a big red candle on the daily chart, bears took the charge. Technically it is likely to trade between 14350—14880. And it’s going to crucial for the short-term market scenario to stay above 14350 levels. More panic may come below 14350 levels.
As per technical levels, resistance laid down at 14,800 and support at 14400. Above 14,800, it may test start a rally for 14,900-15100 on the upside. Below 14400 marks, the price may correct further to 14300—14050 on the downside.
According to Open Interest data, the maximum CE open interest stand at 14800 followed by 14700 and the maximum PE at 14400 indicates a range of trading in the upcoming session. Valuation wise maximum CE & PE stand at 14600 & 14400 is a crucial level for the index.
Nifty Futures strategy for the day
Resistance comes at 14700 and support lays down at 14400.
Strategy – Fresh sell below 14400 for the target of 14300—14050 or else it could test its resistance level of 14700—14800 on the upside.
Bank Nifty underperformed the Nifty Index by -0.9%. The index ended with a loss and closed around 33293.30 (Spot level). Technically more selling pressure may come below the 33200 levels for the downside target 32500. Fresh buy can be done only above 33700 levels, for the upside target of 34000-34500.
Nifty Bank Futures strategy for the day
Resistance at 33700 and Support at 33200
Strategy – Either buy above 33700 for the target of 34000—34500 or sell below 33200 for the downside target of 32700—32500.
Top Stocks Recommendations for Today (25th March 2021)
Technically price has been holding above 100 percent extension of last down leg. It looks good for 535-545 levels.
Trader may initiate long position for abovementioned levels with a stop loss of 515
Price has given an upside breakout to ascending triangle. Technically, It looks good for 135 levels
Trader may initiate long position for abovementioned levels with a stop loss of 117.
RBL BANK (Futures)
RBL Bank, has formed a bearish candle on the daily chart. Traders may look for selling opportunities around 218 levels for the downside target of 205 and then to 196 levels in the days to come.
Support and stop-loss will remain above 231 levels on a closing basis. Trade with the levels only.
Traders can trade safely in Nifty, Bank Nifty and given stock recommendations and with levels only. More will update during the market hour. To get FREE updates on WhatsApp click on the banner given below.
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