On a weekly expiry day, Benchmark indices fell 2.5% in afternoon trade on the back of weak global cues as investors booked gains unable to set right. The puzzle around oil, war, currency, inflation & interest rates triggered blood bath on the Dalal Street. Expectations of high CPI for April coupled with margin pressures seen in fourth-quarter earnings of big companies are further increasing the selling pressure in equities which was visible in the number of stocks hitting yearly lows yesterday.
Investors are advised to remain cautious and average only quality stocks in the coming days and avoid weak fundamental stocks for fresh positions. Traders can play on the sell-side by using every rise as a selling opportunity.
Dalal Street Summary
Nifty (down 2.22%) – Open 16021.10, High 16041.95, Low 15735.75, Close 15808.00
Bank Nifty (down 3.35%) – Open 34289.10, High 34341.20, Low 33297.65, Close 33532.15
Sensex (down 2.14%) – Open 53608.35, High 53632.55, Low 52702.30, Close 52930.31
India Vix – up 6.41% to end at 24.2650 levels
FII’s: Net Sellers : ( – 5255.75 Crores )
DII’s: Net Buyers : ( + 4815.64 Crores )
Bullish Sectors – None of the sector ended in green.
Bearish Sectors – PSU BANK (-5.39%), METAL (-3.70%), FINANCE (-3.35%)
Top Gainers Stocks – Only WIPRO ended in green (+ 0.40%)
Top Losers Stocks – ADANI PORT (-6.13%), INDUSIND BANK (-5.79%)
Nifty Open Interest Put Call Ratio (PCR): 0.63
Maximum CE Open Interest Strike: 16000
Maximum PE Open Interest Strike: 15800
Bank Nifty Open Interest Put Call Ratio (PCR): 0. 61
Maximum CE Open Interest Strike: 34000
Maximum PE Open Interest Strike: 33500
(The maximum CE PE open interest strike rate indicates that the market is likely to move in that particular range in the coming days)
Technical View of Nifty and Bank Nifty
Nifty
The Nifty index finally lost the 16000 level and closed below it. As investors’ concerns were broadly shifted towards inflation risk, the lockdown in Shanghai has led to further negative sentiment in the markets.
Zooming into the 15-min time frame, we can see that the nifty index opened gap-down and corrected sharply after the opening itself.
For the past 6-7 days the index is closing on a negative note, and it is clearly suggesting that nifty is in a shorter-term downtrend, which we have also mentioned continuously.
There is no new technical development seen on the charts, as lower highs and lower lows are in play.
In the coming days, 15670 which is also the low of March 8th, will act as an important support level according to the Nifty spot chart.
Breaking of that support will lead to a further downwards move in the index.
Now, What to Expect?
Sustainable trading action below 15730 in the Nifty Futures may take it downwards towards 15640 and then to 15500, while on the upside a move above 15900 may take it higher towards 16000 and then to 16130.
Bank Nifty
Bank Nifty index has broken its support level of 34000 and from there it crashed during the day.
Yesterday we have clearly mentioned that if the 34000 level got broken on the charts then we can see further downside in bank nifty. Hope you have followed that level.
On the daily charts, we have seen a big red candle, after the four Doji candles.
Now the support levels have shifted to 33000, according to bank nifty spot charts, if that breaks then we can see levels of 32160 on the charts.
Now, What to Expect?
Bank Nifty Future has support at 33300 if breaks and sustain below that level then it will take it towards 33000–32750 levels.
Resistance at 33950 breaks and sustains above this will take it to 34150–35400 levels.
Top Stock Picks For Today (13th May 2022)
ICIL (CASH)
Stock is trading near its resistance zone and also formed a bullish engulfing on daily time frame. If break and sustain above given levels, we may expect a good up move in a shorter time frame
Strategy – Traders can grab ICIL above 152.5 for a target of 160 and then 165 in the coming days. Support and stop loss will be below 145 on a closing basis.
POLYCAB FUTURES
Stock is consolidating in a narrow range from past days and also formed a bullish candle on an intraday basis. If break and sustain above given levels, we may expect a good up move in today’s trading session.
Strategy – Traders can grab Polycab above 2452 for a target of 2500 and then 2540 in the coming days. Support and stop loss will be below 2400 on a closing basis.
Trade safely with levels. To get Dalal Street Live updates, levels, news and recommendations. Join our FREE WhatsApp broadcast list.
We are a SEBI registered investment advisor. The above free information is for education/knowledge purposes. Read the disclaimer on our website before investing.