Yesterday, Indian Stock Market bounced back from day’s low in the last hour of the trading session as major heavyweight stocks like SBI, Reliance witnessed buying sentiments. Strong buying was also seen in midcap and small-cap stocks. Nifty Pharma index advanced for the third session. 35000—36000 is the trading range for the Bank Nifty index. Gradual withdrawal of state-level lockdowns and improved earnings can attract some buying interest in the coming sessions on Dalal Street.
Dalal Street Overview
The key equity indices ended with minor cuts on Wednesday. After recording heavy losses in the afternoon trade, the benchmarks sharply pared losses in late trade. The barometer index, S&P BSE Sensex, declined 85.40 points or 0.16% to 51,849.48, Nifty 50 index gained 1.35 points or 0.01% at 15,576.20 while Bank Nifty rose with 36.55 points or 0.10% at 35,373.75.
Nifty regained 15,550 levels in the last hour trade after hitting the day’s low of 15,459.85 in afternoon trade.
PSU banks (up 3.03%) and Nifty Metal (up 2.18%) shares rallied while Nifty IT (down 0.75%) and Nifty FMCG (down 0.52%) shares declined.
Mothersonsumi and Muthootfin skyrocketed after quarterly results and hit upper circuits in the trading session. We have seen a multi-year breakout in both stocks.
Mothersumi has near support of around 240 and upside targets will be 285-295 levels in the next few trading sessions. Entry on dips around 260 will be a fruitful strategy for the next trading session.
Muthootfin too closed above its all-time high and looks highly bullish for the Bull Run in coming days. The near support is at around 1350–1340 and upside targets will be 1500+ in the next few trading sessions as per the current view.
On the other side, ITC will remain under pressure after flat numbers and we will not expect a major upside in this stock. Immediate support around 200. Break below 200 will test 190 levels in next trading session. Fresh upside move will only expect above 230 levels.
Technical View of Nifty and Bank Nifty Index
The Nifty index was trading under pressure, after the lifetime highs, a sort of muted price action was seen on the charts. Looking at the intraday charts, the index has broken its camarilla R3 level which is placed around 15550, and traded around that same zone throughout the session. A price hike in afternoon sessions showed some buying interest. Overall the buying and selling pressure is somewhat equal that shows the prevailing direction of the index is sideways. Nifty has found meaningful support around 15500—15400 levels. However, the essential resistance emerges around 15700—15800.
Looking at the options data, there is some unwinding in long position can be seen. Nifty Open Interest Put Call Ratio is around 1.09 levels. Maximum Call Open Interest is seen around 15600 levels whereas maximum put open interest is seen around 15400 levels indicates a range of trading in the upcoming session.
Nifty Futures strategy for the day
Resistance comes at 15650 and support lays down at 15400.
Strategy – Fresh buy above 15650 for the targets of 15750—15800 on the upside, or Else it could test its support level of 15400.
Bank Nifty price struggled in consolidation from last 4-5 sessions on the dalal street. Financial index is trading in a range between 35000—-36000. Any significant intraday move has not witnessed by the index from last few days. Banking stocks broadly traded on a flat note as the Reserve Bank of India’s monetary policy meets begins. Nifty PSU Bank is showing massive outperformance as the index was nearly up around 3%. While Heavyweight private bank stocks were top laggards of the day. On the technical front, any significant breakout/breakdown from the prevailing range will decide the further direction of the index.
Nifty Bank Futures strategy for the day
Resistance at 36000 and Support at 34500
Strategy – Either buy above 36000 for the target of 36500—37000 or sell below 35000 for the downside target of 33500.
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VESUVIUS INDIA (CASH)
The stock has given a major trendline breakout on the daily chart. Traders are advised to do buying around 1080 levels for the upside target of 1160 and then to 1200 levels in the days to come.
Support and stop-loss remain at 1020 levels on a closing basis.
The stock formed a bullish candle at the breakout level and looks bullish for the next trading session. Traders can buy above 45 for the upside move till 46.50 and then to 47 levels in days to come.
Support and stop loss below 43.50 on a closing basis.
Traders can trade safely with levels only. More will update during a market hours. To get real time news and updates of Dalal Street on your WhatsApp. Kindly click on the banner given below.
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