Indian Stock Market witnessed a most awaited correction. Bears took charge in the second half and dragged Nifty 50 price to 12745 levels on the downside. Bulls missed their psychological level of 13000 and slid. Technically, Below 12770, the price may correct further till 12660-12520. A fresh wave of buying would be seen only close above 13000 marks.
Indian Stock Market Summary
Bears took charge of the weekly F&O expiry and forced the price to settle down by 166.55 points. Yesterday, financial scrips lost their winning streak and performed worst for the day. Benchmark indices ended at 12771.7 after a 1.29 percent fall. Bank Nifty lost 846 points and closed below 29000. BSE Sensex was down by 580.06 points and closed at 43599.96 marks.
On the sectoral front, FMCG, MEDIA, and ENERGY ended in the green, and REALTY AUTO, METAL, FINANCIAL witnessed selling pressure. India Volatility Index gained 2.35 % to end at 19.57. Market breadth was in favor of sellers. Around 958 stocks on the NSE ended with losses while 740 stocks managed to gain.
Technical View on Nifty and Bank Nifty
Nifty 50 has seen it’s most awaited correction and fell below 12800. Price has given respect to negative divergence with RSI and paused its upside rally. Price was facing resistance above 12930-12950 and finally in the second half-bears took charge, and slid the price for the day’s low of 12745. Technically, below 12745 prices may extend its downfall to 12550-12520 levels.
According to Open Interest Data, the maximum call open interest stand at 12800 and the maximum put at 12000 indicates a broad range of trading in the upcoming session.
Valuation wise maximum Call & Put stand at 12800 & 12700 indicates a crucial range for the index. PCR shifted its support to 12800 levels. The buildup in Put option & writing Calls options gives a negative bias.
Nifty futures strategy for the day
Resistance comes at 12850 and Support lays down at 12745.
Strategy – Sell Below 12745, for the target of 12680-12650.
Bank Nifty ended lower by 2.85% at 28903.05. Banking and financial stocks had been facing selling pressure since morning. Now, Technically, Bank nifty has a range of 600 points from 28600 on the downside to 29200 on the upside. The index is likely to trade in a range.
Nifty Bank futures strategy for the day
Resistance at 29200 and Support at 28600
Either side of the breakout will give the next 400-600 points in the respective direction.
Top Stocks Recommendations for today (20th Nov 2020)
IRB stock, formed a bullish pattern and ready for a fresh breakout on the daily chart. We will expect a sharp upside move from the current levels. Traders can do go long above 120 for the upside move till 124 and then to 128 levels in days to come.
Support and stop loss remains at 116 on a closing basis.
Asian Paint (Futures)
Asian Paints, stock price has given a breakdown to the H&S neckline. Technically, It’s likely to be weak in upcoming trading sessions.
Trader may initiate short position around 2175 with a stop-loss of 2210.
Traders can trade safely with levels only. More will update during market hours.
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