Yesterday, Benchmark Index Nifty started the day with a negative note and continued the same for the entire day. It made a low 11711.70 during the day and closed at 11767.75 with an overall loss of 1.36 percent on the daily basis. Although Nifty tried to recover in the last hour of the session but failed to catch the movement.
Like Nifty, Bank Nifty too started the day with a negative note and continued the bearish move for the entire day. It broke the major support level of 24000 during the session but was unable to sustain below the same on a closing basis. It closed at 24075.45 with an overall loss of 1.65% on a daily basis.
On the sectoral front, the worst performer of the day remained Nifty Metal with almost 3.50 percent loss followed by Nifty Auto and Nifty Media with 3.22 percent & 2.74 percent loss respectively.None of the indices managed to close in green and the India VIX closed at 22.8325 with an overall gain of 4.60 percent.
Market breadth remained completely in the favor of bears where total declines were1292 as compared to 620 advances, 96 stocks settled unchanged.
Technical View of Nifty and Bank Nifty
The index has given sharp bearish movement in the last trading session and closed around the major support level of 11767. For today’s session, we can expect further downside movement in it and any closing below the level of 11660 may generate a fresh downside rally in it.
According to open interest data, the maximum call open interest stand at 12000 and the maximum put at 11450 indicates no change in the trading range.
Nifty futures strategy for the day
Resistance comes at 11830 and Support lays down at 11663
Strategy – Traders can go for selling in Nifty Futures around 11750 by keeping stop loss above 11830 for the target of 11665 -11660 on the intraday basis.
Any consolidation below 11660 marks on a closing basis may generate fresh selling in it.
Bank Nifty formed a negative divergence on the daily chart and broke the major support level of 24000 during the last session but was unable to sustain below the same on a closing basis. For today’s session, we can expect further downside movement in it.
Nifty Bank futures strategy for the day
Resistance at 24310 and Support at 23600
Strategy – Traders can go for selling in Bank Nifty Futures below 24000 by keeping stop loss above 24310 for the target of 23650 – 23600 on the intraday basis.
Top Stocks Recommendations for Today (27th Oct 2020)
The Stock has given a trendline breakout on the daily chart. Traders can buy above 220 for an upside move till 230 and then to 235 levels for the day.
Support and stop loss below 220.
Lupin Futures has given a breakout of the upward channel and also formed a negative divergence on the daily chart. For the next couple of sessions, we can expect the downside movement in it.
Traders can go for selling in it around the level of 965 for the targets of 942 – 940 by keeping Stop Loss above 985.
M&M consolidating on the higher levels with the negative bias and in the last trading session, it formed an almost bearish Marubozu on the daily chart with the high volume & open interest. For today’s session, we can expect downside movement in it.
Traders can go for buying in M&M 600 Put Option around 11 keeping Stop Loss below 7 for the targets of 15 – 16.
Traders can trade safely in Nifty, Bank Nifty and Stocks recommendations with given levels. More will update during market hours.
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