Nifty 50 witness some good price moves and finally settled in the red. Weak cues from across the globe forced the domestic market to close in red. US bond yield near its 14 month high levels. Benchmark Index ended near day’s low to close at 14690. Bank Nifty did not rise as expected, we feel 33000 would act as major support. On the options front( April 01, 2021 expiry), across the board writing was seen in the call option strikes as Nifty trended lower.
Benchmark Index and Market Summary
Bank Nifty was on a hotbed during Wednesday’s trading session, after heavyweights, HDFC Bank record massive profit booking. Major private lenders such as Kotak Bank and ICICI Bank also dragged the index substantially. Nifty FMCG stocks outperformed amidst the bearish markets, the index gained almost 1% with heavyweights ITC and Tata Consumer taking the bull ride.
Nifty IT index was under pressure tracing a broader market tone. Except for TCS, all stocks listed on the index were trading lower. TCS the second most valued company on exchanges, was the star performer of Nifty IT as investors cheered the IT –giant on rebranding. Nifty Pharma index drove the trade despite bearish markets. The index which touched peaks during the Covid-19 lockdown last year has come into the limelight again as a fresh wave of Covid-19 looms. Metal stocks held steady, Nifty metal index outperformed the benchmark Nifty 50 which was trading on a bearish note.
The 30-share BSE Sensex closed at 49509.15 down around -571.20 points, or -1.25%, over the previous day. The Nifty ended down around 154.40 points or -1.04% to close at 14690.70. Bank Nifty closed at 33303.90, closed with a loss of 571.20 points. Indian Volatility Index surged +0.78% percent to close at 20.64. Market breadth ended in favor of bears. Around 900 stocks on the NSE closed with gain, while 990 stocks ended with a loss, and 367 shares are unchanged.
Technical View on Index
Nifty formed an inside day candle on the daily chart. It was opened around the day’s high which implies the assessment for the day has been bearish. In the event that we move beyond 14950, we can extend till 15200—15300. And off the chance that we keep falling and break 14500 on a closing basis, then index could drift further to test the recent low of 14250. Momentum indicators like RSI and MACD support the upside move and indicate that a new breakout’s potential is exceptionally high with an upside projection till the 15300 levels. Trading above 14600 is positive from a short-term perspective.
As per technical levels, resistance laid down at 14,950 and support at 14600. Above 14,950, it may test start a rally for 15200-15300 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 15100 and the maximum PE at 14500 indicates a range of trading in the upcoming session. Valuation wise maximum CE & PE stand at 14600 & 15000 is a crucial level for the index.
Nifty Future strategy for the day
Resistance comes at 14950 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 14950—15100 on the upside.
Bank Nifty underperformed Nifty index by 0.75% with both the indices closed in red. Banking stocks were among the biggest underperformers. Financial index ended with a loss and closed around 33303.9 (Spot level). Technically selling pressure will come only below 33000 levels for the downside target of 32500. Fresh buy can be done only above 33800, for the upside target of 34200-34500.
Nifty Bank Futures strategy for the day
Resistance at 34000 and Support at 33000.
Strategy – Either buy above 33800 for the target of 34200—34500 or Sell below 33000 for the downside target of 32500—32300.
Top Stocks Recommendations for Today (1st April 2021)
Ambuja Cement, stock price has been trading on a lifetime high. Technically, It looks good for the fresh rally on the chart.
Trader may initiate long position for abovementioned levels with a stop loss of 299.
Essel Propack/ EPL (Cash)
Essel Propack, stock price has surpassed all major averages on the daily chart. Technically, It looks good for the fresh rally on the chart.
Trader may initiate long position for abovementioned levels with a stop loss of 227.
The stock has formed a bullish candle on the daily chart. Traders may look for buying opportunities above 1571 levels for the upside target of 1600 and then to1640 levels in the days to come.
Support and stop-loss will remain below 1540 levels 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 will update during the market hour. To get FREE market updates on your WhatsApp. Click on the banner given below.
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