Post announcement of a fiscal stimulus package by Prime Minister Narendra Modi, Indian indices gave a strong opening but failed to hold it and fizzled out from the days high. Price consolidated for most of the session and closed with bearish Belt Hold Pattern.
FM Minister tabled the outline of the most-awaited and historical fiscal package of 20 Lacs crore. The government is trying to ease the economic pain caused by the coronavirus crisis. Today it seems that the government follows a concept of “Everything of Something and Something of Everything.” MSME, NBFC, MFI, Discom was in the limelight.
NBFC and DISCOM would be benefited most. We can see a rally in NBFC and Power Distribution companies as NTPC, Powergrid, Tata Power, and NHPC ETC.
India Meteorological Department also gave an average rainfall prediction in Monsoon survey 2020.
Indian indices ended in green after two days of continuous fall in the wake of the twenty lakh crore package. The BSE Sensex ended 2 percent higher to close at 32,008 while the NSE Nifty 50 gained 2 percent but failed to hold the 9,400 marks, ending at 9,383. Both benchmark indices ended substantially off their day’s high.
The market breadth was in favor of buyers. Around 1,324 stocks on the NSE ended with gains while 452 posted losses at the end of the day.
Among sectors, the Nifty PSU Bank ended as the top gainer, up 6.1 percent while the FMCG index and the Nifty Pharma to be the only sector to ended lower on the Wednesday trading session.
Technical View on Indian Indices
Post announcement of the Fiscal package, the market gave a strong opening but failed to hold it and off the day’s high. Nifty formed a Bearish Belt- Hold pattern on the chart indicates selling pressure will continue. We need a follow up to extend our selling view.
In a broader term, Nifty has trend support at 8900 and interim support is seen at 9030. On the higher side, if the market hold above 9200 then the Nifty price may test 9550/9750 in the next few weeks.
According to Open Interest Data, the Maximum Call open interest stand at 9500 followed by 10000, and Put at 9000 suggests a broad trading range for the index.
Valuation wise maximum Call & Put stand at 9400 indicates a crucial range for the index. PCR stands at 9200 validate it as an immediate support level.
Nifty (future) strategy for the day
Support lays down at 9200, while upside resistance comes at 9450.
Trading above 9450 may extend its upside move 9550—9650, else may test 9300—9200.
On the other hand, following global sentiments, Nifty Bank tested its immediate resistance of 20000 but failed to sustain it and was consolidating in a range of 600 points.
Below 19000, we are in the bear zone and every high would be considered as a selling opportunity in it.
Bank Nifty (Future) strategy for the day
Support at 19400 and Resistance at 20000
If Bank Nifty holds above 20000 then we may see an extension of move for 20500—20700
Below 19400, Price may test 19000—18700 levels on the downside.
Traders can trade safely with levels only. More will update during market hours
Nifty Pharma Looks Attractive For Bears
From the past few trading sessions, Nifty Pharma formed weak candles on the daily charts. Nifty Pharma is just close above its support of 9100. Now we will expect a sharp downfall below the support. Break and sustain below 9100 will see sharp panic till 8800 and then to 8700 in days to come. Hurdle around 9450, break and close above 9450 will see upside fresh upside momentum in this sector.
Stocks like Sunpharma and Biocon looks weak on the charts. Traders can do short on the rise in these stocks for intraday purpose.
Top Stock Recommendations For Today (14th May 2020)
Grab this stock around 550 as the stock has given an upside breakout after consolidation on the chart.
Traders can buy around 550 with a stop loss below 530 levels on a closing basis for an upside target of 580 +++ levels in days to come.
Stock looks positive with a bullish green candle formation. Catch this stock around 173 levels.
Traders can buy around 173 with a stop loss below 165 levels on a closing basis for an upside target of 182 +++ levels in the coming days.
Catch Chamblfert above 140. Resistance around 140, break and close above 140 will see sharp upside till 155 and then to 160 levels in days to come. Support and stop loss below 125 on a closing basis.
Traders can trade safely with levels only. More will update during market hours.