Index closed above 11000 with a 7.90% gain on monthly expiry. Consecutive second expiry held in a large green candle. Now the next month is waiting for the make and break move on Dalal Street.
The selling continues on the second day on the Dalal Street with Nifty ending July F&O series above 11,100 level. The S&P BSE Sensex ended 0.88% lower to close at 37,736 while the NSE Nifty 50 index ended 0.9% lower to close at 11,102. Both benchmark indices ended the July F&O series with gains. The India Volatility Index ended 3.2% higher at 24.9. Market breadth ended in favor of the sellers. Around 1033 shares have advanced, 1570 shares declined, and 167 shares are unchanged.
Among the sectors, except pharma and IT, other sectoral indices ended in the red. The Nifty Pharma was the outperformer for the second straight day, ending 3.1% higher. The I.T. index was the other sectoral gainer, ending 0.7% higher while the underperformers in the previous trading session included the Nifty Bank and the PSU bank index, both ending lower by 2%. and the media index was the top loser, ending with losses of 2.3% on the Thursday trading session.
Technical View on Index
Nifty 50 faced a resistance above 11300 and witnessed a weak session on monthly expiry. Despite weak session, bull succeed to closed monthly expiry 7.90% higher ( EOE basis). Now, 11050-11350 is a crucial range. Either side of the move will decide the next trend.
Nifty, according to Open Interest Data, the Maximum Call open interest stand at 11500 followed by 11300 indicates an immediate hurdle for the market, on the other side max put at 11000 followed by 11100 & 10800 indicates multiple supports for the market.
Valuation wise maximum Call & Put stand at 11200 & 11000 indicate crucial levels for index. PCR at 11100 indicates an immediate support level.
Nifty future strategy for the day
Support lays down at 11040, while upside resistance comes at 11150.
Either side of the move will give the next 70-100 points in the respective direction.
On the other hand, the financial benchmark Bank Nifty underperformed yesterday, ended 1.9% lower.
Nifty Bank future strategy for the day
Support at 21500 and Resistance at 21900
Trend: Holding above 22000 for 30 minutes, It may witness short cover for 22300-22500.
Buy above 21900, Stoploss 21500, Target 22300-22500
Sell Below 21500, Stoploss 21900, Target 21200-21000
Top Stocks Recommendations for today (31st July 2020)
The stock looks weak on the daily chart. Traders can sell it around 92.5 for the downside target of 88 and then to 86 levels.
Hurdle and stop-loss above 96 for the day.
Catch it above 178 for the sharp upside move till 188 and then to 195 levels in days to come.
Support and stop loss below 168 on a closing basis.
Traders can trade safely with levels only. More will update during market hours.