Date: 28th Feb 2020
Indian equity indices ended in red for the fifth consecutive days but recovered from the day’s low in the final hour of trade on the monthly F&O expiry. The BSE Sensex fell 0.36 percent to close at 39,745.66 and the NSE Nifty fell 0.39 percent to close at 11,633.30. The broader markets index Nifty 500 Index fell 0.45 percent.
The market breadth was in favor of sellers from the previous five days. Around 842 shares have advanced, 1549 shares declined, and 157 shares are unchanged. Nine out of eleven sectors close lower including the Nifty realty index fell 2.4 percent. On the other side, Nifty pharma was the top sector gain by 0.59 percent on the Thursday trading session.
After a gap down opening, Bears easily tested 11536.7 levels in the first half of the trading session. Bull showed the strength which helps price to recover from the bottom of the day in the last hour of the session and helped to settled above 11600 levels on the chart.
Technically nifty looks weak on the chart. If it loses its immediate level of 11470-11520 then the current weak move is likely to continue. Any pullback move has a target of 11680-11780
According to Open Interest Data, the Maximum Call open interest stand at 11700 and put 11500 suggests us resistance and support for the index. Valuation wise maximum Call & Put stands at 11700 indicate major level for market, PCR stand at 11500 validate it as a strong support level. Writing in call and long buildup input option indicates a weak move ahead.
Nifty has major resistance of 11700 and a support of 11500.
Sell below 11600 will take it to 11540-11520. else it could test its resistance level of 11680-11720 on the upside.
About Bank nifty, Price succeeds to hold the level of 30000 on the chart on a closing basis. According to Open Interest Data, the Maximum Call open interest stands at 30500 (contract as well as valuation wise) and put option 30000 (contract as well as valuation wise ) suggests a trading range of 500 points. PCR stands at 30000 validate it as a strong immediate support level. Writing in call and long buildup input option indicates a weak move ahead.
Bank Nifty future has support at 30000 and resistance at 31300. Either side of the breakout will give 200-300 point trade in the respective direction
Dead cat bounce is expected in Nifty Pharma
Nifty Pharma has shown a sharp bounce from lower levels in yesterday’s trading session. It took support at 7740 and we will expect a bounce back from this level. Hurdle around 7930, break and sustain above 7930 will take it to 8000 and then to 8100 levels in days to come. Support around 7740, break and close below 7740 will see any sharp downside move in this sector.
Stock like Sunpharma and Cadila looks positive on the charts and expect an upside move in the coming days. Traders can go long on any dip in these stocks for the day.
Concentrate on our key stocks…
After a short correction on the daily chart, the stock is trying to take reversal on the daily chart. We will expect a sharp upside move in this stock in the coming days. Traders can do buying around 538-535 for the upside target of 570 and then to 590 levels in days to come. Support and stop loss remains at 510 levels on a closing basis.