Indian benchmark indices rebound smartly and formed a green bar. Technically above 14450, Nifty may continue its rally for the targets of 14650–14760, and above 31800 marks, bank nifty may test 32800-33300 soon.
Market Summary
After three days of bear dominance, bulls back again and gave a strong close to Indian indices. Benchmark indices gave a strong opening in a morning session and held the gain successfully. Nifty Realty & Metal indices were the top performers on Tuesday’s session. All sectors ended in the green.
The 30-share BSE Sensex added 834.02 points, or 1.72%, to close at 49398.29. The Nifty reclaimed 14500 again and ended with a gain of 239.85 points or 1.68% at 14521.15. Bank Nifty closed at 32424.85 with the addition of more than 600 points. Indian Volatility Index plunged by 6.16 percent to close at 22.89. Market breadth ended in favor of bulls. Around 1454 stocks on the NSE closed again, while 391 stocks ended with a loss.
Technical View On Benchmark Indices
Nifty
After a strong opening, the Index price continued its upward move and ended with a gain of 1.68 percent. The index price is likely to continue its rally above 14400 for the target of 14650 marks. As per our technical, Nifty 50 has an immediate resistance at 14588. Now, fresh buying would be seen either around 14450(Spot) or above 14588(Spot) marks.
Nifty Trend – As per technical, resistance laid down at 14650 and support around 13977. Every low is a buying opportunity around 14400 for an 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 15000 and the maximum put at 14400 followed by 14300 indicates a broad range of trading in the upcoming session.
Valuation wise maximum Call & Put stand at 14500 indicates a crucial level for the index. PCR shifted its support to the 14400 levels. Writing in PUT & build up in CALL options does a bull favors.
Nifty futures strategy for the day
Resistance comes at 14580 and Support lays down at 14450.
Strategy – Buy around 14450 with a stop loss of 14380 for the target of 14520-14580.
Bank Nifty
Bank Nifty recovered from the bottom and turned sharply. The index price added 613.10 points and ended at 32424.85. Technically, above 32300 Index price likely to continue to its rally for 32700-32800.
Trend
Technically, above 31800, the price is heading towards 33500. Fresh selling will do on a close below 31700 on a closing basis.
Nifty Bank futures strategy for the day
Resistance at 32800 and Support at 32300.
Strategy – Buy around 32300 with a stop loss of 31800 for the target of 32800.
Today’s Top Recommendation (20th Jan 2021)
ORIENT REFRACTORIES LTD. (Cash)
The stock has formed a bullish candle on the daily chart. Traders can do buying around 226-225 for the sharp upside move till 236 and then to 244 levels in days to come.
Support and stop-loss remain at 215 on a closing basis.
ASHOK LEYLAND (Futures)
The stock looks bullish on the daily chart and ready for another rally. Traders and investors can buy at 119.60 targets is 140,150 level in days to come.
Resistance and stop loss below 109 levels on a closing basis
Traders can trade safely in benchmark indices and stocks recommendation with given levels only. More will update during market hours.
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