Indian stock market gave up early gains on Wednesday to extend losses to a fourth straight session. The market sentiments were hurt following a rout in Asian and Wall Street indices over worries of global economic slowdown. Selling pressure was broad-based. The S&P BSE Mid-Cap index lost 0.46% while the S&P BSE Small-Cap index declined 2.23%.
So, Why is the stock market falling??
Continuous FII’s selling, rise in inflations, and not up to mark quarterly results hampered investor sentiments and force them to prune their holding in IT, telecom & automobile stocks and switch to safer havens like gold, etc.
Now, what next??
As the Mid and Small caps were also seen under pressure today. Investors are advised to maintain liquid cash in hand to take advantage of any falls in quality stocks due to poor performance in quarterly results.
Indian Stock Market Snapshot
Nifty (down 0.45%) – Open 16270.05, High 16318.75, Low 15992.60, Close 16167.10
Bank Nifty (up 0.61%) – Open 34686.30, High 34793.20, Low 34143.20, Close 34693.15
Sensex (down 0.51%) – Open 54544.99, High 54598.55, Low 53519.30, Close 54088.39
India Vix – up 2.24% to end at 22.8025 levels
Bullish Sectors – REALTY (+0.73%), BANKNIFTY (+0.61%)
Bearish Sectors – IT (-1.24%), AUTO (-0.91%)
Top Gainers Stocks – ONGC (+2.69%), AXIS BANK (+1.91%)
Top Losers Stocks – SHREE CEMENTS (-3.78%), LT (-2.31%)
FII’s: Net Sellers : ( – 3609.35 Crores )
DII’s: Net Buyers : ( + 4181.20 Crores )
Nifty Open Interest Put Call Ratio (PCR): 0.5
Maximum CE Open Interest Strike: 16500
Maximum PE Open Interest Strike: 15500
Bank Nifty Open Interest Put Call Ratio (PCR): 0. 85
Maximum CE Open Interest Strike: 35000
Maximum PE Open Interest Strike: 34000
(The maximum CE PE open interest strike rate indicates that the market is likely to move in that particular range in the coming days)
Technical View of Nifty and Bank Nifty
The Nifty index opened higher, but the selling pressure in the opening bell itself has led to the free fall in the benchmark index.
It has broken our mentioned support, which we have written in our yesterday’s blog, and told clearly that if that support is broken then we will see major selling towards the downside.
Our given levels worked beautifully, and those who have followed must be in handsome profits.
During the day index tried to break the 16000 levels but did not able to sustain below that.
Now we have a clear view of market participants, that they do not want the markets to trade below 16000 levels.
So for the near term this will to act as an important support zone, any sustainable trading action below that may take it downward towards 15700,( considering the spot level of Nifty).
From the strategy point of view, as we have already written previously that we may see some intraday pullbacks in the Indian stock market, but selling on rising will be a fruitful strategy to work on, in the current market scenario.
Now, What to Expect?
Sustainable trading action below 16080 on the Nifty Futures may take it downwards towards 16000 and then to 15900 levels, while on the upside a move above 16250 may take it higher towards 16330 and then to 16450.
Bank Nifty index has maintained to hold above its important support levels, during the morning selling pressure.
We have seen a zig-zag movement during the day, with the 34000 level on the Bank Nifty spot chart, which has not been broken.
On the technical front, overall the index has been traded within the trendless mode yesterday, with most of the price action contained within a range.
Last hour’s buying interest has taken the index to close near its Daily R1- pivot point.
Shifting attention to our short-term oscillators, we have seen that RSI has taken a turnaround from the lower levels, while the MACD lies below both its zero and trigger lines, both indicators detect some sort of downside exhaustion.
Index Price on the daily chart has successfully managed to close above the 200-period Simple Moving Average.
Now the downside move can only be seen on the sustainable close below 34000 (Spot levels).
Now, What to Expect?
Bank Nifty Future has support at 34400 if breaks and sustains below that level then it will take it towards 34200–34000.
Resistance at 34850 breaks and sustains above this will take it to 35050–35300.
Top Stock Picks For Today 12th May 2022
IFB INDUSTRIES (CASH)
Stock is trading near its resistance zone. If break and sustain above given levels, then we may expect a good up move in a shorter time frame
Strategy – Traders can grab IFBIND above 910 for a target of 953 and then 970 in the coming days. Support and stop loss below 883 on a closing basis.
Stock is trading near its resistance zone. If break and sustain above given levels, we may expect a good up move in a shorter time frame
Strategy -Traders can grab ICICIGI Futures above 1298 for the target of 1314 and then 1328 in the coming days. Support and stop loss below 1282 on a closing basis.
Trade safely. Volatility is expected in the market due to weekly F&O Expiry.
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