Bears continued their dominance on the Dalal Street and forced Nifty 50 to breach its psychological mark of 14000 on a closing basis. Technically below 14050 index is open for 13880-13650 levels.
Dalal Street Summary
Market witnessed blood bath. Nifty Bank was the worst performer among all indices. Yesterday was the red day for banking stocks dragged by private lenders. Realty stocks were in a bearish tone, tracking overall market downside. IT stocks have reversed their trend during the second half amid weak markets. Oil and gas stocks were on the hotbed tracking a weaker benchmark index. All listed stocks were trading on a lower note. It comes despite international crude oil prices rallying as US crude stockpiles drop unexpectedly last week and China recording its lower daily rise in Covid-19 cases, which makes investors optimistic for fuel demand pickup ahead. FMCG stocks traded flat and continued to resist the overall selloff of the market
The 30-share BSE Sensex was down 937.66 points, or -1.94%, to close at 44409.93. The Nifty ended down 275.20 points or -1.93% to close at 13963.70. Bank Nifty closed at 30295.40. closed with a loss of 903.00 points. Indian Volatility Index surged 4.94 percent to close at 24.39. Market breadth ended in favor of bears. Around 1233 stocks on the NSE closed with a loss, while 637 stocks ended with a gain, and 311 shares are unchanged.
Technical View on Nifty
Nifty50 price breached its psychological level of 14000 on a close basis. Price gave a follow-up to Black Crow formation. Technically below 14050, the next target is 13650 marks on the downside.
Nifty Trend – As per technical, resistance laid down at 14500 and support around 14050. Every high is a selling opportunity around 14400 for a downside target of 14050.
According to Open Interest Data, the Maximum Call open interest stand at 14500 followed by 14100 & 14200 and the maximum put at 13500 followed by 14200 indicates a broad range of trading in the upcoming session.
Valuation wise maximum Call & Put stand at 14000 indicates a crucial level for the index. PCR shifted its support to 13900 levels.
Nifty Futures strategy for the day
Resistance comes at 14250 and Support lays down at 13900.
Strategy – Sell around 14000 for the target of 13900-13850.
Fresh buying would be seen close above 14500.
Bank Nifty kept pace with benchmark indices and closed at 30284.55 after losing more than 900 points. Bears have dominated the session throughout the day. Technically, below 30000 Index may correct further for 29900 marks.
Bank Nifty Trend – Technically, below 30000, the price is likely to slip for 29900. Else may test its immediate resistance of 31300-31800.
Nifty Bank Futures strategy for the day
Resistance at 31300 and Support at 30000.
Strategy – Sell below 30500 with a stop loss of 31300 for the target of 30000–29700.
Fresh buying would be seen close above 31300.
Today’s Top Recommendation (28th Jan 2021)
KRBL, stock has formed a bullish candle on the daily chart on lower levels. Traders can do buying above 234 for the sharp upside move till 248 and then to 255 levels in days to come.
Support and stop-loss remain at 220 on a closing basis.
COLPAL formed a bullish pattern and ready for a fresh bull run on the daily chart. We will expect a sharp upside move from the current levels. Traders can go long around 1530 for the upside move till 1550 and then to 1560 levels in days to come.
Support and stop loss remains at 1500 on a closing basis.
Traders can trade safely with levels only. To get real time Dalal Street news and updates join us on WhatsApp.
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