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Home » PSU Divestment news triggered the markets higher. Did 39000 levels coming in Bank Nifty Index?
Morning Nifty Update

PSU Divestment news triggered the markets higher. Did 39000 levels coming in Bank Nifty Index?

Nifty Bank Nifty Sensex all time high

 

 

 

Benchmark index closed around the record high levels. Bank Nifty outperformed the Nifty index by 0.25% for the second consecutive trading session with both the indices closed ~0.6%/0.35% higher. Banking and consumer stocks were among the top outperformers. Stocks like SBI, Titan & Bata added heavy long positions during the day. Nifty Midcap 100 index closed ~0.6% higher.

 

 

Stock Market Summary

 

The Bulls maintained their grip towards the upside and this bullish trend can continue in the coming sessions too. Nifty 50 closed near 18000 levels and finally settle down with a gain of 46 points or 0.26% at 17991.95. Bank Nifty performed extremely well and made fresh record highs of 38609.60 levels on Tuesday’s trading session. Finally ended the day by adding 227.70 points or 0.59% in the kitty and closed at 38521.50.

Sensex was up 148.53 points or 0.25% and closed at 60284.31. The index showed bullish movement from last 2-3 consecutive session. It made a high of 60331.34 and a low of 59885.39 in yesterday’s session. The broader market also gave positive closing BSE mid-cap rose 0.65% and BSE Small-cap up 0.26%.

Among Sectors, Nifty PSU Bank was star performer of the day with 2.99% up. Other sectoral indices like Nifty Media (up 1.47%), Nifty FMGC (up 1.22%) and Nifty Media (up 1.09%). While Nifty IT index was the worst performer and closed in red with a loss of 0.74%.

About 1431 shares have advanced, 1577 shares declined, and 119 shares are unchanged. DII and FII both were net sellers for the day with 741 and 278 crores worth equities sold yesterday.

 

Top Gainers and Losers of Nifty 50:


Titan (up 6.15%), Bajaj-Auto (up 3.29%) and SBIN (up 2.93%) were Top gainers of the day.

HCL Tech (down 3.74%), HDFC Life (down 1.92%) and Coal India ( down 1.83) were Top losers of the day.


Stock in News:


One should keep an eye on Tata Motors stock in today’s trading session as Tata Motors sets up a wholly owned electric vehicle subsidiary. TPG group to invest Rs 7500 crores in new electric vehicle arm on valuation of 9.1 billion dollar.

Above 437, stock might touch 452–460 and the 470 in coming days.

 

 

Technical View of Nifty and Bank Nifty

 

Nifty

 

Nifty futures opened on a negative note. Made a low of 17860 during the day, and then buying interest from the lower levels has pushed it above 18000.

During the day index was majorly hovering around 17900, but at the later half of the day bulls pushed the index to close around 18008.50 levels.

On the 1-hour chart, the index has closed above 20 EMA, which is acting as a dynamic support zone on the falls.

Momentum Indicator RSI has also closed above the 68, which gives further evidence of the uptrend.

As the charts suggest, the index has taken strong support at 17876 levels which are in confluence with the 78.6% fib retracement on the hourly charts. 17943 will also act as a support on the falls.

For Upside the resistance to watch out is 18060 above this index will likely touch 18135 which is the 1.618 % fib extension.

On the options front, Nifty open interest put-call ratio is around 1.28 levels. Maximum call open interest additional was seen in 18200. Whereas maximum put open interest is around 17800 levels. This indicates a range of trading in upcoming sessions.

Nifty Futures Strategy for the day

 

Technical Chart of Nifty Futures
Technical Chart of Nifty Futures



Resistance at 18060 and Support at 17943.

Strategy – Either buy above 18060 for the targets of 18100—18135 or Sell below 17943 levels for the downside targets of 17900—17870.

 

 

 

Bank Nifty

 

Bank Nifty futures opened gap up around 35 points at 38400. The first half of the day, bank nifty reacted very volatile and not much movement has been seen.

But in the second half bulls have pushed the index to touch its all-time high of 38665. The index remained very bullish on the news of PSU’s divestment.

Major Banks which has supported the index on their way up were AXIS BANK, FEDERAL BANK, KOTAK MAHINDRA BANK, and SBIN.

On the technical front, it has formed a rounding bottom pattern on a 1-hour chart, which shows that bullish momentum will likely continue in the near term.

RSI closes above 65 on an hourly time frame, which will also support the index on its way towards the upside.

While looking at the moving averages, an index is continuously taking support at 20 EMA on 15 min time frame, which is around 38470.

Intraday support is at around 38283.  Below this the next support levels to watch out is 38005 and 37885 levels.

For upside, resistance is at 38670 levels above this 38750—38880 and 39094 are the next upside target.

On the options front, the Bank nifty open interest put-call ratio is around 1.28 levels. Maximum Call open interest additional was seen in 39000. Whereas maximum put open interest is around 38200 levels. This indicates a range of trading in upcoming sessions.


Nifty Bank Futures strategy for the day

 

Technical Chart of Bank Nifty Futures
Technical Chart of Bank Nifty Futures


Resistance at 38670 and Support at 38283

Strategy – Either buy above 38670 for the targets of 38750—38880 or Sell below 38283 for the downside target of 38005.

 

Top Stocks Recommendation for Today (13th Oct 2021)

 

BANK OF INDIA (CASH)

 

BANK INDIA

Technical Chart of BANK INDIA
Technical Chart of BANK INDIA

 

After a long correction, the stock is ready for the major reversal. We will expect a fresh upside move in days to come in this stock.

Traders can buy above 60 for the upside move till 63 and then to 65 levels in days to come.

Support and stop loss below 57 levels.

 

 
 
MARICO (FUTURES)

 

Marico

Technical Chart of Marico
Technical Chart of Marico

 

Marico is forming a cup and handle pattern in 15 minute time frame with good volume and is ready to give a fresh breakout. We can expect a decent move in the coming days in this stock.

Strategy – Traders can buy this stock above 588 for the upside move till 600 and then 612 in the coming days. Support and stop loss below 580.

 

 

 

Traders can trade safely with levels only. More will update during market hours.

 

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We are a SEBI register investment advisor. The above free information is for education/knowledge purposes. Read disclaimer on our website before trading/ investing.

 

 

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