On Thursday after showing weakness from past few trading sessions, Nifty 50 took support from it’s day’s low of 14151.40 and zoomed up to close above 14,400. Bank Nifty out performed and gained 669 points. Sectoral, buying was seen in banks, finance, metals, realty and oil & gas stocks. While profit booking was seen in consumer durables, FMCG, IT, and consumer discretionary space. On the options front (April 22, 2021 expiry), across the board writing was seen in the put option strikes as Bank Nifty trended higher.
Stock Market Summary
Bank Nifty Index gained momentum and emerged as an outperformer. Heavyweights stocks lifted financial benchmark index. Corporate earnings season and ongoing Covid-19 spread continued to play a vital role in market sentiments. Heavyweights like ICICI Bank and Kotak Bank shined by strengthening nearly 4% and 2.3% respectively. SBI and HDFC Bank also contributed towards Bank Nifty’s rally. Indian metal company stocks outperformed the benchmarks. JSW Steel and Tata Steel drive the sector. Nifty IT index traded flat, Wipro hit a new high on the NSE to lead the fight amid subdued trade in the sector.
Nifty FMCG index was under pressure throughout trading session. The index shed nearly 300 points to drag the sector amid a rally seen in the markets after a bearish start. Heavyweights HUL, Tata Consumer, and Nestle dragged. Pharma stocks showed some strength in the morning session. The performance in pharma stocks comes after the Government has waived off customs duty on Remdesivir injections, raw material among others.
The 30-share BSE Sensex closed at 48080.67 up around 374.87 points, or +0.79%, over the previous day. The Nifty ended up around 109.80 points or +0.77% to close at 14406.20. Bank Nifty closed at 31782.60, closed with a gain of 669.90 points. Indian Volatility Index surged +2.68% percent to close at 23.02. Market breadth ended in favor of advances. Around 1126 stocks closed with gain, 745 stocks ended with a loss, and 379 shares were unchanged on NSE.
Technical View on Index
Nifty formed a bullish piercing pattern on the daily chart. Index opened gap down and went on to close above the midpoint of the preceding session, shows that the dips are being bought. Nifty has taken support at 100 EMA. Hence, there can be some strength from the pullback level that could expand towards 14,526 levels and then to 14,650 levels.
As per technical levels, resistance laid down at 14,550 and support at 14200. Sustain above 14,550, it may test start a rally for 14750–14850 on the upside. Below 14200 marks, the price may correct further to 14000—13900 on the downside.
On the options front, maximum put open interest was seen at 14,000 followed by 13,500 strikes while maximum call open interest was seen at 15,000 followed by 14.500 strikes. Call writing was seen at 14,800 then 15,000 strike while Put writing was seen at 14,000 and 14,200 strikes.
Nifty Futures strategy for the day
Resistance comes at 14550 and support lays down at 14200.
Strategy – Fresh sell below 14200 for the target of 14000—13900 or else it could test its resistance level of 14550—14650 on the upside.
Bank Nifty opened gap down at 30,763.50 but managed to hold multiple support of 30,500 levels and escalated above the previous highs to hit an intraday high if 31,834.50. Banking stocks outperformed the broader markets and the index closed with gains of 669.90 points of 2.15 percent at 31782.560 (Spot level). Technically if it continues to trade above 31,750 for an up move towards 32,250 and 32,500 while on the downside support can be seen at 31,250 and 31,000 levels.
Nifty Bank Futures strategy for the day
Resistance at 31750 and Support at 31250.
Strategy – Either buy above 31750 for the target of 32250—33500 or sell below 31250 for the downside target of 30800.
Top Stocks Recommendations for Today (23rd April 2021)
Dish TV (Cash)
Price seems to take support with the positive diversion with RSI on Daily Chart. Technically, It looks good for 10.40 level on the upside.
Trader may initiate long position for abovementioned levels with a stop loss of 8.70.
Price gave a bounce back from 200 DMA on the EOD chart. Technically, Pullback is expected for 260 level on the chart.
Trader may initiate long position for abovementioned levels with a stop loss of 230.
JSW STEEL (Futures)
The stock has given a tremendous breakout of the consolidation range on the daily chart with volume. Traders can go for buying around 633 for the upside target of 660–670++ levels with stop loss below 600 on a closing basis.
Trade with the levels only.
Traders can trade safely in Nifty, Bank Nifty and given stock recommendations with levels only. More news and updates will provide during market hours to our WhatsApp and Telegram followers.
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