Benchmark indices Nifty continued its higher bottom formation and ended marginally higher. On the other side Bank nifty has taken a resistance of 200 DMA. Now, bank nifty needs to give a strong close above 24000 to back in battle.
The event which may add volatility in Thursday market.
*Hearing of petitions seeking interest waiver to continue on Sep 3 at 2 PM
The benchmark indices continued to gain for the second consecutive session, led by a swift recovery in the banking index towards the final minutes of trade. The BSE Sensex ended 0.5% higher to close at 39,086 while the NSE Nifty 50 index ended 0.56% higher to close at 11,535.
Both indices traded in a narrow range throughout the session. The India Volatility Index ended 3.5% lower at 21.03. Market breadth was in favor of buyers. Around 1,210 stocks on the NSE ended with gains while 616 declined.
Among sectoral indices, the Nifty bank recovered 400 points from the lowest point of the day to end 0.3% higher. The Media index was the outperformer and ending 3.5% higher while the Nifty I.T. and Nifty Metal indices ended with gains of over 1.5% each. The broader market index outperformed and the midcap and smallcap index ended with gains of over 1.5% each on the Wednesday trading session.
Technical View of Benchmark Indices
Nifty 50 ended marginally higher. Technically immediate support is laid down at 11320; Price needs to hold support levels to avoid bearish sentiments. Above 11500 marks we can see a rally for 11600-11660. Below 11450, the bear may continue downside move for 11380-11320 levels.
According to Open Interest Data, the Maximum Call open interest stand at 11700 followed by 11600 and the maximum put at 11400 followed by 11500 indicates a narrow trading range of upcoming sessions.
Valuation wise maximum Call & Put stand at 11500 indicate crucial levels for index. A PCR stand at 11400 indicates an immediate support level also.
Benchmark Indices Nifty future strategy for the day
Resistance comes at 11560 and Support lays down at 11360
Strategy – Buy at any dip above 11500, for the target of 11600-11680. Else below 11450 bears may continue for 11380-11320.
On the other hand, Bank nifty has been facing a resistance of 200 DMA on the daily chart which is laid down at 23913. The bull needs to give close above 24000 to get an upside momentum.
Nifty Bank Future strategy for the day
Resistance at 24000 and Support at 23300.
Strategy- Buy above 24000, for the target of 24700-25000, else may test 23500-23300 level on the downside.
Top Stocks Recommendations for today (3rd September 2020)
In our last Index update, we had recommended two stocks of the future segment.
Our Buy call of UBL missed entry by just a few points and skyrocketed.
Buy call of Lichsg Fin was not active. Kindly ignore and wait for a fresh call.
RAMCO CEMENT (Future)
The stock formed consecutive bullish candles on the daily chart. Traders can do buying on dip around 708 for the sharp upside move till 730 and then to 740 levels in days to come.
Support and stop loss below 690.
TATA STEEL (Future)
Catch Tata Steel above 443 for the upside target of 458 and then to 465 in days to come.
Support and stop loss below 429 on a closing basis.
TATA MOTORS (Cash)
Stock has given a positive breakout on the chart. Garb it around 148 levels.
Traders can buy around 148 with a stop loss below 142 on a closing basis for an upside target of 158 +++ levels in the coming days.
Catch it above 1000 as the stock looks more bullish above it on the chart.
Traders can buy this counter above 1000 with a stop loss below 960 levels for an upside movement till 1070 +++ levels in days to come.
Traders can trade safely with levels in benchmark indices. More news on Nifty, Bank Nifty and stocks specific will update during market hours.