Yesterday we have witnessed an extension of the bull run. Bank Nifty met our expectations as we already mentioned that Bank nifty might prove Gem for the current week in our Sunday weekly report. Financial Indices outperformed the market and claimed 24200 again. Technically above 24200, the price may extend its rally to 24600-25000. On the other hand, the Nifty’s move was capped by heavyweight Reliance and pharma stocks. Above 11900 marks, we may see a steady upside move in benchmark indices.
The Indian stock market opened on a strong note. The benchmark indices extended their gain of last week and pushed the price to its crucial resistance level. Yesterday’s gain was led by banking stocks.
Nifty 50 claimed 11800 levels on a closing basis backed by national and global cues. The BSE Sensex ended at 40431.6 marks with a gain of 448 points. The NSE Nifty 50 index followed the global trend and ended at 11873.05 after a rally of 110 points. India Volatility Index remained flat at 0.82%. Market breadth remained in favor of buyers. Around 991 stocks on the NSE ended with losses while 702 stocks managed to gain.
On the sectoral front, The Nifty Bank ended nearly 3.12% higher while the PSU Bank index gained more than 4 %. Small-cap and midcap stocks remained to underperform. The worst performer was pharma. The other major loser was Media, Auto, and IT stocks. Broader markets continued to underperform. The Nifty Midcap index gained 0.70% while the small-cap index ended with an addition of 0.72% on the first day of the week.
Technical View of Nifty and Bank Nifty
Nifty 50 opened the gap and consolidated into the range of 11800 to 11900 for the entire season. For the upcoming trading session, 11900 is a crucial resistance level. Above 11900, prices may extend its rally to 11980-12020, else may test 11800 on the downside.
According to Open Interest Data, the Maximum Call open interest stand at 12000 and the maximum put at 11800 & 11700 indicates an upside trading range for upcoming sessions.
Valuation-wise maximum Call & Put stand at 11900 indicates a crucial level for the index. PCR sustained its support to 11700 levels.
Nifty futures strategy for the day
Resistance comes at 11900 and Support lays down at 11800
Strategy – Buy above 11900, for the target of 11980-12020 with a stop loss of 11800.
Fresh sell would be seen either below 11760 or around of resistance level.
As per expectation Bank, Nifty outperformed the other benchmark indices. Bull dominated the Index price throughout the session and It showed a steady move to the upside. The price settled approx. its day high and above its immediate résistance of 24190. Technically, above 24200, the bulls are likely to dominate the battlefield for upside targets of 24600-25000. Else it may test 24000-23600 on the downside.
Bank Nifty futures strategy for the day
Resistance at 24500 and Support at 24200
Strategy – Buy above 24200, for the target of 24500. Else it may test 24000-23800.
Top Stocks Recommendations for Today (20th Oct 2020)
The stock has given a sharp reversal from lower levels on the daily chart. Traders can do buying around 2050 for a sharp upside move till 2150 and then to 2200 levels in days to come.
Support and stop-loss remain below 1950 on a closing basis.
The stock looks bullish on the daily chart and ready to break its hurdle. Traders can buy on dips around 554-550 for upside gain to 580 and then to 600 levels in days to come.
Support and stop-loss remain below 535 on a closing basis.
ITC Futures reversed from the lower levels after the formation of a good candlestick reversal pattern on the daily chart and also created positive divergence. For Today’s session, we can expect further buying in it.
Traders can go for buying in the ITC Futures around the levels of 168 for the target of 172 – 173 by keeping Stop Loss below 164.
Indusind Bank (Futures)
Indusind Bank Futures consolidating near to the major resistance level of 643 and traded with a positive bias in the last trading session. We can expect Indusind bank to test its major resistance level of 643 on the upside in the coming session.
Traders can go for buying in the Indusind Bank Futures around the levels of 623 by keeping Stop Loss below 606 for the target of 640 – 642.
In the last trading session, we saw good profit booking in HEROMOTOCO from the higher and it formed an engulfing pattern on the daily chart. For Today’s session, we can expect further selling in it.
Traders can go for buying in the HEROMOTOCO 3250 Put option around the levels of 80 for the target of 120/ 125 by keeping Stop Loss below 50.
Coal India (Option)
In the last trading session, we saw good buying in Colaindia from the lower levels after the formation of the Doji pattern on the daily chart that confirms the trend reversal. For Today’s session, we can expect further buying in it.
Traders can go for buying in the Coal India 115, call option around the levels of 3 for the target of 5/ 6 by keeping Stop Loss below 1.
Traders can trade safely in Nifty, Bank Nifty and given stocks with levels only. More will update during market hours on our FREE WhatsApp Broadcast and Telegram Channel.
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