Financial benchmark indices Bank Nifty saved Monday’s low. The Bulls did not give up hope and fought till the last and succeeded in claiming 22500. Technically, we need a breakout to either side of the prevailing range from 22000 to 22800 to be decisive for the next trend. Till then range bound session may enjoy.
Benchmark indices traded sideways in a tight range and ended higher with the positive cues from the Asian market and led by out performance in Banking and Pharma stocks. The BSE Sensex ended 0.74% higher to close at 39,044 while the NSE Nifty 50 gained 0.7% at the close of trade to end at 11,521. India Volatility Index fell from 3.75% to 20.4. Market breadth improved for the second consecutive day and remained in the favor of buyers. Around 1,105 stocks on the NSE ended with gains while 713 stocks declined in the previous trading session.
Among the sectors, Pharma stocks were the out performer in the previous session. The index ended off the highest point of the day with gains of nearly 2% and the Nifty Bank ended with gains of 1.8% or 400 points while most other sectoral indices ended flat and the realty index was the top loser and ending with the loss of 0.7%. The midcap index recovered from the day’s low to end 1% higher while the small cap index gained 1.5% in the last closing hour on the Tuesday trading session.
Technical View on Nifty and Bank Nifty
Bulls pushed the nifty and managed to close above 11500, Technically immediate resistance comes at 11580. Above 11580 marks, the bull may continue their rally to 11780 levels. On the flip side, below the 11400 levels, it may test 11330-11260 on the downside.
According to Open Interest Data, the Maximum Call open interest stand at 11700 and the maximum put at 11400 indicates a narrow trading range for upcoming sessions.|
Valuation wise maximum Call & Put stand at 11500 indicates a crucial level for the index. A PCR stand at 11400 indicates an immediate support level.
Nifty future strategy for the day
Resistance comes at 11580 and Support lays down at 11440
Strategy – Buy above 11580 for the target of 11680-11750.
On the other hand, Bank nifty after a tight range bound session, ended in green. Finally, it’s settled with the addition of 364 points. Technically, immediate resistance comes at 22800 and support lays down at 22000 marks. Below 22000 marks, The Index is likely to extend its selling pressure further for downside targets of 21500 levels. Else, may test 22800 on the upside.
Nifty Bank future strategy for the day
Resistance at 22550 and Support at 22000
Strategy – Either side of the breakout will give the next 300-500 points in the respective direction.
Top Stocks Recommendations for today (16th September 2020)
AARTI IND (Cash)
Catch aarti Industries above 1100 for the upside target of 1150 and then to 1180 in days to come.
Support and stop loss below 1050 on a closing basis.
The stock has given a sharp breakout on the daily chart. Traders can do buying around 575 for the upside move till 600 and then to 620 in days to come.
Support and stop loss below 540 on a closing basis.
Grab it around 415 levels as the stock looks positive on the chart.
Traders can buy around 415 levels with a stop loss below 409 on a closing basis for an upside movement till 422 +++ levels in the coming days.
M&M Finance looks bullish from the lower levels on the chart. Catch it around 137 levels.
Traders can buy around 137 levels with a stop loss below 134 on a closing basis for an upside target till 142—145 levels in the coming days.
Traders can trade safely in Nifty and Bank Nifty with levels. More will update during market hours only on our WhatsApp broadcast and Telegram channel.