Nifty and Bank nifty stuck in a narrow range. Yesterday’s weekly expiry settled marginally higher on Dalal Street. Bank Nifty remains underperformed. Both indices need to surpass its prevail last two days range for further momentum.
Dalal Street Market Summary
Benchmark Index Nifty traded on a volatile note. Indian indices reacted positively on WPI Dec(YoY) figures and closed marginally higher. Nifty PSU bank slightly traded in green while nifty private bank closed with little loss. Nifty Energy was the most outperformer sector on Thursday’s session. Oil and Gas stocks continue to extend their gaining momentum, as investors cheer drawdown in U.S crude stocks for the fifth straight week and robust data from China globally. Pharma stocks recovered the early losses and closed with an almost 1% gain. Auto stocks continued to perform on a higher note.
Tyre manufacturer MRF was the lead gainer on the index. Tata Motors has maintained a near-record high level throughout the week after the company’s sales improve amid the Covid -19 pandemic. The Nifty FMCG index extends gains for the second day. The investors are confident about financial recovery as U.S. President-elect Joe Biden is expected to unveil a significant Covid -19 relief package on Thursday. The nifty Metal index was the worst-hit sector, lost almost 1 percent
On Dalal Street, the 30-share BSE Sensex was up 91.84 points, or 0.19%, to close at 49584.16. Nifty ended up around 30.70 points or 0.21% to close at 14595.60. Bank Nifty closed at 32519 .80 closed with a loss of 54.85 points. Indian Volatility Index plunged 1.14 percent to close at 23.03. Market breadth ended in favor of bears. Around 894 stocks on the NSE closed with a gain, while 980 stocks ended with a loss, and 350 shares are unchanged.
Technical View of Dalal Street
Index price held 14500 marks successfully on a closing basis for the third straight day. As per our technical expectation, Nifty 50 traded in a range throughout the day and ended marginally higher at 14595.60. Now, fresh buying would be seen only above 14655(Spot), else may witness a profit booking for 14550-14450
Nifty Trend : As per technical, resistance laid down at 14766 and support around 13977. Every low is a buying opportunity around 14400 for the upside target of 14650-14760. Holding below 14400 may slide the price to 14200-13980 on the downside.
According to Open Interest Data, the Maximum Call open interest stand at 14600 followed by 15000 &14800 and the maximum put at 14500 followed by 14000 & 14400 indicates a broad range of trading in the upcoming session.
Valuation wise maximum Call & Put stand at 14500 indicates a crucial level for the index. PCR maintained its support to the 14400 levels. Writing in both call & put options indicates an indecisive move ahead.
Nifty futures strategy for the day
Resistance comes at 14766 and Support lays down at 14444.
Strategy – Buy in dip around 14540-14570 for the target of 14650-14750.
After a good start, Bank Nifty ended marginally lower at 32519.75. Technically above 32400 Index price likely to continue its upside rally for 33300 else may show a profit booking till 32000.
Trend: Technically, above 31800, the price is heading towards 33300.
Nifty Bank Futures strategy for the day
Resistance at 32800 and Support at 32400
Strategy – Buy around 32600, for the target of 32900-33300.
Today’s Top Recommendation (15th Jan 2021)
Deepak Nitrate (Cash)
The stock is trading in a range and ready for a fresh breakout. Hurdle around 1050, break and close above 1050 will take it to 1085 and then to 1100 levels in days to come.
Support and stop loss below 1015 levels on a closing basis.
Muthoot Finance (Futures)
Muthoot Finance, catch it above 1260 we will expect a sharp move towards the upside. Traders can do buying around 1260 levels for the upside target of 1275 levels and then to 1285 levels in days to come.
Support and stop-loss remain at 1240 levels.
Traders can trade safely in Nifty, Bank Nifty and recommended stocks with levels only. More will update during market hours. To stay updated about market join our ‘FREE WhatsApp Update Service’ (Click on banner given below).
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