After a long time bears took charge on the Dalal Street. Nifty plunged for 1 percent and Bank Nifty around 1.35 percent. Both indices ended in bear’s grip. Technically, Nifty has a resistance of 14450 and Bank nifty has at 32500. Every high is a selling opportunity below the above-mentioned levels.
Dalal Street Market Summary
Dalal Street witnessed selling pressure. Benchmark index Nifty 50 closed on a negative note followed by Bank Nifty index which also ended in the red. Nifty metal indices were the top underperformers on Monday’s session. Metal sector stocks were in a bloodbath as investors carried profit booking result of the same all stocks traded on a lower note. Media stocks began the week on a bearish note, tracking overall market performance. ZEEL was also under pressure, down by almost 4%. Auto stocks were among the top laggards. Tata Motors has halted its winning streak of last week and emerged as the top underperformer of the sector today.
Bears grasped firm hold of Realty stocks following in general feeble benchmark indices. India bulls real estate also shed almost 3% ahead of financial results announcement for the quarter ended December 2020. Pharma stocks were under huge selling pressure, despite the rollout of the Pan India COVID-19 vaccination drive. The downside in pharma stocks tracked weak global cues. Banking stocks extended the losses during the trading session with the majority of stocks witnessing huge selloff except for heavyweight HDFC Bank. BSE Midcap and Small cap Indices shed 2 percent each.
The 30-share BSE Sensex was down 470.40 points, or -0.96%, to close at 48564.27. Nifty ended down around 152.40 points or -1.06% to close at 14281.30. Bank Nifty closed at 31811 .80 closed with a loss of 435.00 points. Indian Volatility Index surged 1.60 percent to close at 234.40. Market breadth ended in favor of bears. Around 420 stocks on the NSE closed again, while 1512 stocks ended with a loss, and 311 shares are unchanged.
Technical View on Nifty and Bank Nifty
Nifty
Index price plunged by 1 percent and continued its red formation. As per technical levels , Nifty 50 has been sliding for 14050-13977 marks on the downside. Now, fresh buying would be seen only above 14450(Spot), till then every high is a selling opportunity for the above-mentioned target.
Nifty Trend – As per technical, resistance laid down at 14650 and support around 13977. Every low is a buying opportunity around 14400 for the upside target of 14650-14760. Holding below 14400 may slide the price to 14200-13980 on the downside.
According to Open Interest Data, the Maximum Call open interest stand at 14600 followed by 14500 and the maximum put at 14000 followed by 13500 indicates a broad range of trading in the upcoming session.
Valuation wise maximum Call & Put stand at 14300 indicates a crucial level for the index. PCR shifted its support to the 14200 levels. Writing incall & build up in put options do a bears favors.
Nifty futures strategy for the day
Resistance comes at 14450 and Support lays down at 14222.
Strategy – Sell below 14200 with a stop loss of 14400 for the target of 14050-13977.
Fresh buying only if it holds above 14450.
Bank Nifty
Bank Nifty continued its corrective move and closed below 32000. The index price lost 435 points and ended at 31811. Technically, below 31800 Index price likely to continue its corrective move for 31300-3100. Fresh buying would be seen only above 32500 marks only.
Bank Nifty Trend
Technically, above 31800, the price is heading towards 33300. Else may test 31300-30750 on the downside
Nifty Bank futures strategy for the day
Resistance at 32500 and Support at 31800.
Strategy – Sell below 31800 with the stop loss of 32300 for the target of 31500-31500.
Fresh buying only holds above 32500.
Today’s Top Recommendation (19th Jan 2021)
ABB (Cash)
The stock has given a tremendous breakout of the consolidation range on the daily chart with volume. We will expect a sharp upside move in the coming days. Traders can do buying around 1320 for the upside target of 1380 and then to 1400 levels in days to come.
Support and stop-loss remain below 1260 on a closing basis.
REC LTD. (Futures)
The stock has facing resistance at higher levels. Traders can do selling around 142-140 for the downside target of 138 and then to 136 levels in days to come.
Resistance and stop-loss remain at 145 levels on a closing basis.
Traders can trade safely in Nifty, Bank Nifty and given Stock recommendations with levels only. More news of Dalal Street will update during market hours on WhatsApp and Telegram Channel.
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