Yesterday, Indian Stock Market witnessed selling pressure since morning. All major benchmark indices ended lower. Technically, Sell-off is likely to continue below 14610 levels for a downside target of 14500-14450 in Nifty 50.
Indian Stock Market Summary
A huge sell-off has been seen in the Market. Banking stocks additionally confronted the burnt of bears. Nifty PSU Bank underperformed the Nifty 50. IT index was trading on a massive bearish note. Heavyweights TCS, Wipro, Infosys, HCL Tech weighed down the most. Media stocks were bearish tracking overall market performance. PVR Leisure dragged the sector most as rising Covid-19 cases are a key risk for multiplex companies as they pose a direct threat to occupancies.
Bears trap realty stocks on the broad-based selloff in markets, Godrej Properties was the major laggards. Auto stocks were among the top bears pushing benchmarks. Investor’s focus now shifts towards their monthly sales data amid renewed lockdown and restrictions in the last week of February in major cities. Nifty FMCG stocks were bearish, despite top performance by Jubliant Food works. The stocks hit a fresh 52-week high of ₹3099.25, Marico and Dabur dragged the sector most.
The 30-share BSE Sensex closed at 49744.32 down around 1145.44 points, or -2.25%, over the previous day. The Nifty 50 ended down around 306.05 points or -2.04% to close at 14675.70. Bank Nifty closed at 35257.20, closed with a loss of 584.40 points. Indian Volatility Index surged 15.55 percent to close at 25.71. Market breadth ended in favor of bears. Around 1379 stocks on the NSE closed with a loss, while 566 stocks ended with a loss, and 321 shares are unchanged.
Technical View on Nifty and Bank Nifty
Nifty
Benchmark Index price ended lower for straight fifth trading sessions. Nifty 50 has ended 306.05 points lower at 14675.70 marks. Technically selling pressure is likely to extend further if the index price decisively breaks its next supports of 14610 then may slide for 14450-14380, else may test 14850-15420 on the upside.
Nifty Trend – As per technical, resistance laid down at 14980 and support around 14450. Below 14980 marks, the price may extend to 14720-14450 on the downside. Above 14980, it may test 15250-1450 on the upside.
According to Open Interest Data, the Maximum Call open interest stand at 15000 followed by 15200 and the maximum put at 14000 followed by 14500 indicates a broad range of trading in the upcoming session.
Valuation wise maximum Call & Put stand at 14700 & 14600 is a crucial range for the index. PCR maintained its support to 14500 levels.
Nifty Futures strategy for the day
Resistance comes at 14777 and Support lays down at 14600.
Strategy – Fresh Sell below 1460 target 14500 – 14450 Fresh Buy above 14777 target 14850 and 14930
Bank Nifty
Bank Nifty futures gave a weak opening and ended after losing 1.90 percent. Bears dominated the index since morning and slipped it for 35075. Technically, below 35000 prices is likely to continue its weak move for 35000-34500 levels on the downside, else may test 36000-36200 on the upside side. Fresh buying would be seen only close above 36200 marks.
Bank Nifty Trend – Technically, immediate support comes at 35500 marks. Above 35500 it may rally for 36600-37700, else may test 34500-33000 on the downside.
Nifty Bank Futures strategy for the day
Resistance at 36200 and Support at 35000.
Strategy – Sell around 35500 for the target of 35000-34500.
Top Stock Recommendations for Today (23rd Feb 2021)
FIRST SOURCE SOLUTIONS LTD. (FSL, Cash)
The stock looks bullish on the daily chart and ready for another rally. Traders can buy above 104 for the upside gain target till 115 and then to 120 levels in days to come.
Support and stop loss remains at 94 on a closing basis.
RELIANCE (Futures)
Reliance formed a bearish candle on the daily chart. Traders can go for selling around 2000 levels for the downside target of 1950 and then to 1900 levels in intraday session.
Hurdle and stop-loss above 2050.
Click here to read our 'New Chart Idea on Axis Bank'
Traders can trade safely with levels only. More will update during market hours. To get regular updates and news on Indian Stock Market. Join our FREE WhatsApp broadcast list. To join just click on the banner given below.
We are a SEBI registered investment advisor. The above free information is for education/knowledge purposes. Read disclaimer on our website before investing.
