Nifty after making a low of 14151, has made a bullish piercing pattern. However, crossing 14526 will be crucial for any further up move. Advanced decline ratio is positive on Dalal Street and suggesting that investors are comfortable holding on to and buying small and midcaps ahead of result season. The market could move higher in the coming week as the intermediate uptrend is intact. The index has also support from sectoral indices that have bounced back from support. We can expect stock-specific bullishness in the coming weeks.
Dalal Street Summary
Amid positive global cues, Nifty Pharma traded on a bearish note on Friday’s trading session. As the number of cases in the country continues to rise, various states are announcing newer measures to control the spread. Lupin was the underperformer of the index tumbling by 1.5%. On the trading index window, Divi’s Lab and Alkem Laboratories were the only performers trading in the green.
Nifty Metal has pared its early gains of Friday however, continued to stay steady led by major stocks like Coal India, Vedanta, and Adani Enterprises which kept bears at bay as broader markets turn volatile. Nifty Auto stocks were trading flat amid volatile trade. Mahindra & Mahindra was the top laggard along with Ashok Leyland. Motherson Sumi led the gains. Nifty FMCG index emerged as the top markets bears. Britannia, Hindustan Uniliver, Godrej Consumer, Varun Beverages, and Dabur were under pressure.
The 30-share BSE Sensex closed at 47878.45 down around -202.22 points, or -0.19%, over the previous day on Dalal Street. Nifty ended down around -64.80 points or -0.45% to close at 14341.40. Bank Nifty closed at 31722.30, closed with a loss of -60.30 points. Indian Volatility Index plunged -1.45% percent to close at 22.69. Market breadth ended in favor of advances. Around 1028 stocks on the NSE closed with gain, while 862 stocks ended with a loss, and 110 shares are unchanged.
Now, what’s ahead???
The index shut’s the week on a negative note at 14,333 with a loss of almost 2% week after week and formed a DOJI Candle for the third continuous week hinting at uncertainty in the markets. The index has major support around 14,250—14200 levels. The structure will be positive and any close below these levels can drag the index to muck lower levels. For upside, major resistance is placed at 14,450—14,500 zone. Fresh strength above 14,500 zones will take it 14,750—14,900 level.
Events that may add volatility, Need to be watched in upcoming week
*29th April 2021-Thursday Weekly Expiry
* 30th April 2021, Friday- Federal Fiscal Deficit(Mar)
*30th April 2021, Friday – Infrastructure Output(YoY)
* 30th April 2021, Friday-FX Reserves, USD
*30th April 2021 – Friday- Infrastructure Output(YoY) (Mar)
*FII and DII participation
Technical View of Dalal Street
Nifty again formed a Doji candle for the third consecutive week. The index bounced off from the major support level of 14200, and is also holding above the 50 Days Simple Moving Average on the four-hourly chart. Holding above the support levels, the structure will be positive but any close below these levels will drag the index to the lower levels. On the higher side, stiff resistance is placed at 14500, fresh strength will come on close above these levels. All in all, bulls are in the lead but not in full control.
According to Open Interest data, the maximum CE open interest stand at 14500 followed by 14600 and the maximum PE at 14200 indicates a range of trading in the upcoming session. Valuation wise maximum CE & PE stand at 14400 & 14300 is a crucial level for the index.
Nifty Future strategy for the day
Resistance comes at 14500 and support lays down at 14200.
Strategy – Fresh sell below 14200 for the target of 14000—13900 or else it could test its resistance level of 14500—14650 on the upside.
Nifty marginally underperformed the Bank Nifty index with both the indices closing lower on Friday’s trading session (April 23, 2021). The index ended with a loss and closed around 31722.80 (Spot level). Technically Buying can be seen above 32200 marks. Technical indicators have extended their advances, with RSI at around 56. Bank Nifty is well above the 20 and 200 SMAs. Buyers are defending the downside at around 30500 levels. Below it the retracement could reach 29000 levels.
Bank Nifty Weekly Trend
Key resistance levels lays down at 32,200 (Spot levels ). Above 32200 (Spot level), the price may bounce back for 34000 and then to 35000. Below 31000, it may correct for 30000—29500 marks on the downside.
Bank Nifty Futures strategy for the day.
Support at 31200 and Resistance at 32500.
Strategy – Either side breakout will give the next 500—800 points in the respective direction.
Nifty Financial Service has bottomed out and headed towards north direction.
Nifty financial services has formed a bullish candle on the weekly charts and ready to fly in a blue sky zone. We have seen a strong recovery from the lower levels in last week on Dalal Street. All the major stocks of this sector formed a bullish pattern and ready for the fresh bull run.
On the technical front, Bulls continued their dominance and likely to continue also for the target of 17300 levels. If Nifty financial services is able to close above 15600 then we will see a sharp upside move till 16700 and then to 17300++ levels in days to come. It has its support at 13900, a break below 13900 will negate our positive view in this sector.
Stocks like M&M fin and Axis bank looks bullish on the technical chart and we will expect an upside move in the coming days.
M&M Fin – Traders can go long around 180 for the upside to move till 215 and then to 240 levels in days to come. Support and stop loss below 150 on a closing basis.
Axis Bank- Stock has formed a bullish pattern on the weekly chart and ready for a fresh breakout. Hurdle at 680, break and close above 680 will touch 760, and then to 780 levels in days to come. Support at 600, our positive view will negate below 600 levels.
Trade with the levels only.
Top Stocks Recommendations for Monday (26th April 2021)
The stocks has formed a bullish candlesticks pattern on the daily chart. Traders are advised to go for buying in it around 2140 for the upside target of 2200 and then to 2240 levels in the days to come.
Support and stop-loss remain at 2080 levels on a closing basis.
Hindustan Unilever Ltd. (Futures)
Technical Analysis: – The stock has given an evening star pattern on higher levels on the weekly chart. RSI oscillator showing divergence for the downside movement. The stock has its support at 2300 and resistance at 2470 levels. If price Break and sustain below 2300 then it will take it to 2170–2100+++levels.
Trade Idea:- Based on the weekly chart study, investors can go short below 2300 for the downside target of 2170—2100++ support and stop-loss remains above 2470 on a closing basis.
Traders can trade safely in Nifty, Bank Nifty and given Stock recommendations with levels only. To get Dalal Street real time updates, news and recommendations, click on the banner given below.
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