Bears domination continued in the Indian Stock Market. Sell-off is likely to continue below 14980 levels. Financial Services stocks and Bank Nifty hit worst in yesterday’s session. Technically below 36400, Bank Nifty may slid further for 35500 levels.
Indian Stock Market Summary
Nifty Bank was in a huge sell-off during Thursday’s trading session dragged by heavyweight private bank stocks. Nifty PSU Bank outperformed. Bank of Baroda climbed by nearly 11% after touching a new record high. Metal stocks were top picks despite the lackluster performance of benchmarks Sensex and Nifty. Nifty FMCG found the market bears, Colgate Palmolive shed 2.5%, Nestle India continued to dive on quarterly earnings. IT stocks escaped the wrath of bears on benchmarks. The Nifty IT index ended in the green, despite heavyweight Tata Consultancy Services (TCS) witnessing major profit- booking. Nifty Realty stocks were flat amid volatile trade. Auto stocks turned bearish after engaging in a subdued trade in the first three days of this week. The index is facing a pause after corrections last week on spurt in stock prices on quarterly earnings and monthly sales.
The 30-share BSE Sensex closed at 51324.69 down around 379.14 points, or -0.73%, over the previous day. The Nifty ended down around 89.90 points or 0.59% to close at 15119.00. Bank Nifty closed at 36587.00, closed with a loss of 323.90 points. Indian Volatility Index surged 0.14 percent to close at 21.54. Market breadth ended in favor of bulls. Around 1050 stocks on the NSE closed with a loss, while 856 stocks ended with a loss, and 326 shares are unchanged.
Technical View on Nifty and Bank Nifty
Nifty50 price ended lower for straight third trading sessions. Nifty has ended 89.90 points lower at 15119.95 marks. Technically selling pressure is likely to extend further if the index price decisively breaks the crucial support of 14980, else may test 15250-15420 on the upside.
Nifty Trend – As per technical, resistance laid down at 15250 and support around 14980. Below 14980 marks, the price may extend to 14850-14720 on the downside. Above 15250, it may test 15430-15510 on the upside.
According to Open Interest Data, the Maximum Call open interest stand at 16000 followed by 15500 and the maximum put at 14700 followed by 15000 indicates a broad range of trading in the upcoming session.
Valuation wise maximum Call & Put stand at 15000 is a crucial range for the index. PCR maintained its support to 15000 levels.
Nifty Futures strategy for the day
Resistance comes at 15155 and Support lays down at 14980.
Strategy – Fresh sell below 15080 for the target of 15030-14980 OR Fresh buy above 15155 for the target of 15200-15250.
Bank Nifty extended its loss and tested 36367.45 on the lower note. Price faced selling pressure throughout the session and closed with a loss of 323.90 points. Technically, below 36400 prices is likely to continue its weak move for 35500–34500 levels on the downside, else may test 36400–35500 on the downside.
Bank Nifty Trend – Technically, immediate support comes at 36400 marks. Above 36400 it may rally for 37700-39100, else may test 35500-34500 on the downside.
Nifty Bank Futures strategy for the day
Resistance at 36800 and Support at 36300.
Strategy – Buy above 36800 for the target of 37300-37500 OR Sell below 36300 for the target of 35800-35500.
Top Stock Recommendations for today (19th Feb 2021)
Stock is ready for the resistance breakout on the daily chart. Traders can buy above 2510 for an upside move till 2700 and then to 2800 levels for the day.
Support and stop loss below 2300.
India bulls housing finance, stock is trying to break its major hurdle on the daily chart. Traders can do buying around 228 for sharp upside move till 236 and then to 240 levels in days to come.
Support and stop loss remains at 224 on a closing basis.
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