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Home » Bloodbath on the Dalal Street. Sensex posted biggest fall in the last 7 months. Reliance industries falls around 4.50% after calling-off Aramco deal.
Morning Nifty Update

Bloodbath on the Dalal Street. Sensex posted biggest fall in the last 7 months. Reliance industries falls around 4.50% after calling-off Aramco deal.

Bloodbath on Dalal Street

Yesterday, we have seen one sided selling in the Indian Stock Market. There were several reasons behind yesterday’s fall. Withdrawal of all three agricultural laws by the central government showed its effect on the shares of government companies. Then Reliance Industries’ deal with Saudi Aramco was canceled due to which we have seen heavy downfall in Reliance Industries shares which has strong hold on Nifty. And then on global front many countries have imposed lockdown again due to increase in Corona virus case. This led to fear in the Dalal Street which resulted as profit booking in the market. 

 

 

Dalal Street Summary

 

Yesterday across the board bloodbath was seen in the market since the opening on of the trading session. The benchmark index Nifty 50 crashed almost 2% or 348 points in a day to close at 17416.55 levels while Bank Nifty fell by 2.5% to settle at 37128.80 levels. Bank Nifty underperformed the Nifty index by 0.25%.

Reliance Industries was among the top index loser, closed 4.5% down along with an addition of fresh short positions.

On the other hand, Bharti Airtel shares gained 3.88% during the day on the news of hike in tariffs which is going to applicable from 26th November 2021.

On the sectoral front,


All the sectors ended red in yesterday’s trading session.
Nifty PSU Bank (down 4.34%), Nifty Realty (down 4.04%) & Nifty Media (down 3.80%) were top losers of the day, Nifty Energy and Auto index was also down around 3%.

FII were net sellers sold 3439 crores worth shares today. While DII were net buyers, bought 2051 crores worth shares.

Major Gainer and Loser of Nifty 50


Bharti Airtel (up 3.78), JSWSTEEL (up 1.64%), and Asian Paints (up 1.13%) were among the Top gainers of yesterday.

Both Bajaj twins Bajfinance & Bajajfinsv, Tata motors, Zeel & Reliance were down around 4-5%. 

Now, what’s next on Dalal Street??


Subdued listing & continuation of weak trading of Paytm, India’s largest new generation fintech, is a big sentimental setback to the domestic market, which was thriving on the strong primary market. It will impact the inflow of money from the retail segment, which has been a key player during the year.

FIIs are also a seller due to fear of overvaluation of India compared to peers. Weak inflow from FIIs will possibly get higher due to the withdrawal of three agriculture farm acts which brings a stoppage to the government’s reformist agendas in context to coming state elections next year.

The short-term trend has definitely been disrupted. If we continue this momentum, we can slide further. But one can keep an eye on stocks which has good fundamental and technical value and can add / buy them on dips.

 


Technical View of Dalal Street

 

Nifty

 

On daily charts, the Nifty has formed a long bearish candle which is broadly negative. In the last five days, the Nifty corrected over 900 points

Technically, the Nifty index has confirmed the “Head & Shoulder Pattern” breakdown on the daily chart and moved down from the neckline as we discuss in the weekly report.

Moreover, the index has also sustained below Lower Bollinger Band formation, which indicates a bearish trend for the coming day. Furthermore, Stochastic & MACD has also witnessed a negative crossover on the daily timeframe, which suggests a bearish move in the index.

In case buyers manage to lift the Index back above 17600 and hold it there, we will see some pull back in the market. On the downside, support could be seen at 17350—–17250. (Spot Levels)

On the options front, the Nifty open interest put-call ratio is around 0.49 levels. Maximum call open interest addition was seen at 17600 strike. Whereas the maximum put open interest is around 17400 levels. This indicates a range of trading in upcoming sessions.

 

Nifty Futures strategy for the day

 

Technical Chart of Nifty
Technical Chart of Nifty

 

Strategy – Either buy above 17500 for the targets of 17600–17670 or Sell below 17400 levels for the downside targets of 17335–17260 (Futures Levels)

 

 

Bank Nifty

 

The Bank Nifty opened on a positive note only to face a fresh round of selling near 38180. Bank Nifty has witnessed a fall of more than 2.20% in a single day.

Technically Bank Nifty formed a falling parallel channel on an hourly time frame, which indicated a sideways to bearish move in the upcoming days.

Nifty Banking and Financial services were under heavy selling pressure. All the stock in Banking and Financial services were ended in the red.

In case buyers manage to lift the Index back above 37800 and hold it there, we will see some upside move. On the downside, support could be seen at 37000—36700. (Spot Levels)

On the options front, the Bank Nifty open interest put-call ratio is around 0.46 levels. Maximum call open interest addition was seen at 37500 strike. Whereas the maximum put open interest is around 37000 strike. This indicates a range of trading in the upcoming sessions.

 

Bank Nifty Futures strategy for the day

 

Technical Chart of Bank Nifty
Technical Chart of Bank Nifty

 

Strategy – Either buy above 37350 for the targets of 37500–37700 or Sell below 37200 levels for the downside targets of 37000—36700. (Futures Levels)

 

 


Top Stock Recommendations for today (23rd November 2021)

 

BALRAMPUR CHINI (CASH)

 

DALAL STREET STOCK BALRAMPUR CHINI

Technical Chart of BALRAMCHIN
Technical Chart of BALRAMCHIN

 

After a sharp correction, the stock recovered well from lower levels. We will expect a bullish reversal from current levels.

Strategy – Traders can buy around 312 for the upside move till 330 and then to 340 levels in the coming days. Support and stop loss will be below 296 levels.

 

 
 
HERO MOTOCORP (FUTURES)

 

DALAL STREET STOCK HERO MOTO CORP

Technical Chart of Heromoto Corp Futures
Technical Chart of Heromoto Corp Futures


We have seen lower high and lower low formation on charts on 4 hours time frame & stock has also given a trend line breakdown, we may see further downside in this stock

Strategy – Traders can go for selling around 2645 for the downside move till 2590 & then 2535 in the coming days. Support and stop-loss will be above 2700 on a closing basis.

 

 

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We are a SEBI registered investment advisor. The above free information is for education/knowledge purposes. Read disclaimer on our website before investing.

 

 

 

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