Nifty stuck in range again and ended with a bearish candle. We get a mixed view. Index tried to manage. Auto, FMCG gained and PSU Bank, PHARMA & Energy ended lower.
Ahead of PM speech, Indian stock market witnessed a volatile throughout the day and closed lower on the second consecutive days. Both the S&P BSE Sensex and the NSE Nifty 50 index ended little changed after trading in a narrow range throughout the session. The Sensex ended at 34,915 while the Nifty managed to hold on to the 10,300 marks, ending at 10,302. The India Volatility Index ended 0.4% higher at 29.03.
Market breadth was in favor of sellers. Around 1259 shares have advanced, 1452 shares declined, and 137 shares are unchanged. On the sectoral front, the Nifty Auto index outperformed in the previous session and ending with gains of 1.1% while the Nifty PSU Bank and the Nifty Media indices fell 1.7% each while the Nifty Pharma index fell 1.5% on the Tuesday trading session.
Technical View of Nifty
An Indian Benchmark index has stuck in a range since the last three sessions. Again price fizzled out the day’s high. The next move is directional less we need to wait for either side of the breakout. It would be wise to trade with levels only.
Trend:-Index unable to hold above 10500 and witnessed a profit booking from higher levels. Now 10550 levels are a trend settle level. We are expecting a range-bound session between 10050 to 10550 levels.
NiftyAccording to Open Interest Data, the Maximum Call open interest stands at 10400 followed by 10500, and Put at 10000 suggests a broad trading range for the index.
Valuation wise maximum Call & Put stand at 10300 indicates crucial levels for index. PCR stands at 10200 validate it as an immediate support level.
Nifty future strategy for the day
Support lays down at 10150, while upside resistance comes at 10360.
Either side of the breakout will give the next 150-200 points in the respective direction.
Risky trader may follow a strategy of sell near resistance and buy near support with the strict stop loss of the above-mentioned resistance and support levels.
On the other hand, Financial benchmark Bank Nifty has given respect to a benchmark index and ended l% lower.
Nifty Bank Future strategy for the day
Support at 20900 and Resistance at 21400
Buy above 21400, for the target of 21650-21800 OR Sell below 20900 for the target of 20500-20300.
Top stocks recommendations for today (1st July 2020)
Catch Nam India above 322 for the sharp upside move till 345 and then to 360 levels in days to come.
Support and stop loss below 300 on a closing basis.
AURO PHARMA (Future)
The stock looks weak on the daily chart and ready to fall from the upper levels. Traders can sell it around 780 for the downside target of 760 and then to 750 levels.
Hurdle and stop-loss above 800.
BHARAT FORG (Future)
Bharat Forge formed a small bullish candle on the daily chart. Traders can buy above 320 for the upside move till 335 and then to 345 levels in days to come.
Support and stop loss below 304.
Traders can trade safely with levels only. More will update during market hours.