Indian Stock Market witnessed a volatile day of trade with financial stocks continued to trade with a negative bias. Nifty is trading in a range between 14400–14900 from past few days. The directionless Ichimoku lines are promoting minor consolidation. The market is awaiting the RBI policy with an expectation to maintain the status quo, future commentary on growth and inflation will be highly viewed with an optimistic outlook on FY22. On the options front (April 08, 2021 expiry ), across the board writing was seen in the call option strikes as Bank Nifty trended lower.
Stock Market Summary
Nifty IT index traded flat amid volatile trade on Tuesday’s session. TCS and Infosys traded marginally higher. Larsen & Turbo Infotech, Tech Mahindra, Wipro and Mphasis traded flat. Pharma stocks were the top performers, as the Covid -19 vaccination drive continues in full swing offsetting concerns over the second wave of the virus in India. Nifty pharma outperformed the benchmark Nifty 50. All listed stocks on the pharma were traded in the green. Cadila, SunPharma Dr. Reddy were top bulls. Majority of the metals stocks were in the fast lane. Metal companies stocks are in focus amid the March production data announcement, under which the majority have witnessed improvement. Adani Ent. rose almost 8%. Nifty FMCG stocks witnessed buying activity, the sector gained almost 1%. Tata Consumer and Emami were the major gainers while United Breweries Limited dragged them most and Jubilant Food Works was also in the negative zone.
The 30-share BSE Sensex closed at 49201.39 up around 42.07 points, or +0.09 %, over the previous day. Nifty 50 ended up around 45.70 points or 0.31% to close at 14683.50. Bank Nifty closed at 32501.30, closed with a loss of -177.50 points. Indian Volatility Index plunged -1.77% percent to close at 20.84. Market breadth ended in favor of advances. Around 1157 stocks on the NSE closed with gain, while 1157 stocks ended with a loss, and 362 shares are unchanged
Technical View on Index
Nifty is trading in a range between 14450 and 14900 from past few sessions. The index failed to show resilience to stay above 14800 levels. The pattern of selling at resistance and buying at support continued. Present daily and intraday chart setup signal chances of bounce towards 14900 levels again in short term, before showing another round of weakness from the highs. Intraday resistance is now placed at 14800.
As per technical levels, resistance laid down at 14,800 and support at 14600. Sustain above 14,700, it may start a rally for 14800-14900 on the upside. Below 14600 marks, the price may correct further to 14500—14250 on the downside.
According to Open Interest data, the maximum CE open interest stand at 15000 followed by 14800 and the maximum PE at 14500 indicates a range of trading in the upcoming session. Valuation wise maximum CE & PE stand at 14600 & 14700 is a crucial level for the index.
Nifty Future strategy for the day
Resistance comes at 14800 and support lays down at 14600.
Strategy – Fresh sell below 14600 for the target of 14500—14250 or else it could test its resistance level of 14800—15000 on the upside.
Bank Nifty underperformed the Nifty 50 index by -0.8% with the former closed in the red while Nifty closed in green. Financial heavyweights stocks contributed to the majority of the index losses. Bank Nifty index ended with the loss and closed around 32501.30 (Spot level). Technically selling pressure may continue below 32330 levels for the downside target of 31500. Fresh buy can be done only above 33200 for the upside target of 33800—34000.
Nifty Bank Futures strategy for the day
Resistance at 33200 and Support at 32300.
Strategy – Either buy above 33200 for the target of 33800—34000 or sell below 32300 for the downside target of 31800—31500.
Top Stocks Recommendations for Today (7th April 2021)
Price has formed a Bullish engulfing pattern from the bottom. Technically, It looks good for 300 level on the upside
Trader may initiate long position for above mentioned levels with a stop loss of 260.
ASIAN PAINT (Cash)
Price has been following the Shark pattern. Technically, It looks good for 2750 levels on the upside.
Trader may initiate long position for abovementioned levels with a stop loss of 2500.
The stock has formed a bullish pattern and ready for a fresh bull run on the daily chart. We will expect a sharp upside move above 418 levels. Traders can go long above 418 for the upside move till 430 and then to 440 levels in days to come.
Support and stop loss will remain below 407 on a closing basis.
Traders can trade safely in Index and Stock recommendations with levels only.
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