Yesterday, Bank Nifty outperformed in the benchmark indices. Nifty able to manage above the key resistance level of 11300. Nifty 50 made a doji pattern while Bank nifty made strong green candle on the technical charts. Upcoming rally is likely from the financial stocks.
Market Summary
Nifty50 ended higher for the sixth consecutive day, while Sensex rallied in the fourth straight session with the help of banking and metal stocks. The BSE Sensex climbed 0.6% to close at 38,407 while the NSE Nifty 50 Index closed 0.4% higher at 11,318. Market breadth was in favor of buyers. Around 1559 shares have advanced, 1146 shares declined, and 143 shares are unchanged.
Among sectors, except pharma and IT, other indices ended in the green. Nifty media was the top-performing sector in the previous trading session while Nifty metal gained 1.66% and Nifty bank gained 1.49% respectively. The broader market underperformed with the S&P BSE SmallCap and S&P BSE MidCap indices losing 0.2% each on the Tuesday trading session.
Technical View on Nifty and Bank Nifty
As per expectation, the benchmark index further accelerated its buying momentum and managed to close above 11300 marks.
For the six straight days, it continued its upside move. Now the next hurdle is placed at 11402-11494. Continued buying by FIIs and PCR stands at 11200 give an indication of “Buy in Dip”. Any unfortunate trading below 11220 may slide it further for 11140 marks on the downside.
Nifty According to Open Interest Data, the Maximum Call open interest stand at 11500 followed by 11400 indicates an immediate hurdle for the market, on the other side max put at 11000 followed by 11200 indicates the range for the markets.
Valuation wise maximum Call & Put stand at 11300 indicate crucial levels for index. PCR stands at 11200 indicate an immediate support level.
Nifty future strategy for the day
Resistance comes at 11370 and Support lays down at 11290
Strategy – Buy above 11370 for the target of 11420-11450 with a stop loss of 11290.
Bank Nifty
On the other hand, the financial benchmark Bank Nifty outperformed yesterday and finally settled 1.49% higher. It managed to close above 22000. Technically, its buying momentum is likely to continue.
Nifty Bank future strategy for the day
Resistance at 22400 and Support at 21800.
Strategy – Buy at any dip above 22100 with stop loss 21800 for the target of 22400-22700.
Top Stocks Recommendations for today (12th August 2020)
KEC (Cash)
Catch KEC around 286-285 as stock is taking support at lower levels. We will expect it to touch 300 and then to 310 levels.
Support and stop loss below 250 on a closing basis.
WONDRELA (Cash)
The stock formed a large bullish pattern on the daily chart. Traders can buy around 150 for the upside move till 160 and then to 170 levels in days to come.
Support and stop loss below 140.
AXIS BANK (Future)
Catch it around 445 levels as the stock looks bullish on the chart.
Traders can buy Axis Bank around 445 with a stop loss below 435 on a closing basis for an upside target of 457—460 levels in days to come.
ZEEL (Future)
Stock looks positive after long correction on the chart. Grab it around 158 levels.
Traders can buy ZEEL around 158 with a stop loss below 152 on a closing basis for an upside rally of 170 +++ levels in the coming days.
Traders can trade safely with levels only. More will update during market hours
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