Benchmark Index Nifty 50 opened on a higher note, but unable to break the resistance level of 15,100 and erased early gains. Market was trading sideways for whole day. In the upcoming sessions, Nifty is likely to trade in the range of 14,900 and 15,250 and it’s going to be crucial for the short-term scenario to sustain above the level of 14,900.
Market Summary
Nifty Bank traded on a lower note as heavyweights private banks dragged the sector offsetting the gains arising from PSU Banks. Oil and Gas stocks were the sectors in focus inching broader market. Metal stocks were in the fast lane on Monday’s s trading session as base metal prices rose higher at Shanghai and London front. Investors cheered a better-than-expected US jobs report which stirred hopes for faster economic recovery. Nifty Pharma stocks outperformed to a surge of 1%, Lupin leading the charge with over 2% gain. Other Pharma heavyweights Cadila, Cipla, Divis Lab, and Sun Pharma also advanced over 1% to lift the sector. Indian IT company stocks especially heavyweights were in the fast lane, tracking a positive global tech rally. HCL Tech was the top gainers soaring by nearly 3%.
The 30-share BSE Sensex closed at 50441.07 up around 35.75 points, or 0.07 %, over the previous day. Benchmark Index Nifty ended up around 18.10 points or +0.12% to close at 14,956.20. Bank Nifty closed at 35275.80, closed with a gain of 47.60 points. Indian Volatility Index plunged -3.46% percent to close at 24.68. Market breadth ended in favor of bulls. Around 1030 stocks on the NSE closed with gain, while 885 stocks ended with a loss, and 371 shares are unchanged.
Technical View on Benchmark Index
Nifty
Nifty 50 traded with high volatility in yesterday’s trading session. Prices opened higher and tested an Intraday high of 15,111.15, finally ended lower at 14,959.20. Price formed a red Doji candle on the daily chart. Technically above 15200, the index is likely to continue its winning streak. Any trading above 15200 would be buying opportunity for the upside target of 15300—15500.
Nifty Trend – As per technical levels, resistance laid down at 15186 and support at 14800. Above 15186, it may test start a new rally for 15300-15500 on the upside. Below 14800 marks, the price may correct further to 14685—14500 on the downside.
According to Open Interest data, the maximum CE open interest stand at 15100 followed by 15200 and the maximum PE at 14900 indicates a range of trading in the upcoming session. Valuation wise maximum CE & PE stand at 15100 & 15200 is a crucial level for the index. PCR shifted its support to 15000 levels.
Nifty Futures strategy for the day
Resistance comes at 15150 and support lays down at 14920.
Strategy – Fresh sell below 14920 for the target of 148250—14760 or else it could test its resistance level of 15088—15150 on the upside.
Bank Nifty
Bank Nifty gave a strong start and unable to hold higher. The index flat around 35375.80. Technically, the rally is likely to continue above 35800 for the upside target of 37000. The fresh sell would be seen below 34900 for the target of 34600—34000.
Nifty Bank Futures strategy for the day
Resistance at 35800 and Support at 34900.
Strategy – Either buy above 35800 for the target of 36400—37000 or sell below 34900 for the downside target of 34600—34000.
Top Stock Recommendations for Today (9th March 2021)
Cash Stocks Update
On 8th March 2021, we have recommended two stocks as ISEC and Kotak Bank.
Kotak bank, missed entry and marked a high of 1947.85 in the morning trade and finally closed in 1914 after retrenching for entry-level. We close the call.
ISEC marked a high of 423 and missed the first target by 1 point. We close the call.
Our fresh recommended positions are REC and PRAJIND.
Please follow the stock as per level carefully
PRAJIND (CASH)
The stock price has given a breakout to its immediate resistance of 183.5
Technically stock price looks good for 200. Keep stop loss at 170.
RECLTD (CASH)
The stock price has been following Shark and Gartley formation on the EOD chart. This suggests at the target of 155 on the upside.
Trader may initiate position with a stop loss of 140 for the target of 150–154.
BATA INDIA (FUTURES)
Bata India, stock looks extremely weak on the daily chart and ready to break its support level. Traders can go short below 1500 for the downside move till 1450 and then to 1430 mark in the days to come.
Hurdle and stop-loss above 1530.
Traders can trade safely in benchmark index and top picks with levels only. More will update during market hours.
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