Nifty 50 ended on a weak note after a sluggish day for the Indian benchmark indices. Nifty slipped below 9,200; BHARTI INFRATEL and INDUSIND BANK climbed by more than 6%.
Indian equity market ended in red after trading in consolidation with a volatile day on the weekly F&O expiry. Indian benchmark indices BSE Sensex traded in a 400 point range throughout the session to end 0.76 percent lower to close at 31,443 while the NSE Nifty 50 was trading in a range of 100 points to close at 9,199 and down by 0.77 percent. On Nifty 40 out of the 50 stocks ended with losses.
The market breadth was in favor of sellers. Around 1038 shares have advanced, 1255 shares declined, and 160 shares are unchanged. On the sector front, all the sectoral indices ended lower while the Nifty FMCG index and the Nifty Bank index ending with losses of over 1 percent on the Thursday trading session.
Technical View on Nifty 50 and Bank Nifty
After a choppy day, Nifty closed in red on the EOD chart. Yesterday’s levels would be crucial for the next trend.
Nifty 50 has support at 9100 & 8900. On the higher side, we expect 9650/9850 to be tested in the next few weeks.
According to Open Interest data, Maximum Call open interest stand at 9500 followed by 10000, and Put at 9000 followed by 8500 suggests a broad trading range for the index.
Valuation wise maximum Call Stand at 9200 and maximum Put stand 9000 indicates a crucial range for the index. PCR stands at 9000 validate it as a strong support level.
Writing in Call & Put option indicates indecisive move ahead.
Nifty future strategy for the day
Nifty 50 has strong support at 9100 levels while upside resistance comes at 9300. We are expecting a breakout of the above-mentioned range today.
Trading below 9100 may extend its down move for the next 100—150 points, else it may test its resistance level of 9300 again. Trading above 9300 levels may fuel it for 9380—9450 on the upside
Catch Nifty 50 (future) above 9300… for the target of 9380—9450.
Sell below 9100… for the target of 9080—8950.
On the other hand, Nifty Bank traded in a very narrow range of approx 400 points throughout the last session. Index price has been waiting for a major move in either direction.
Nifty Bank (Future) strategy for the day
Support at 18900 and Resistance at 19800
Trader may enter in a Sell position below 18900 for the target of 18200—17800.
Fortunate trading above 19800 may lead price for 20500—20800 levels on the upside.
Downfall continues in Nifty Pharma
As per our previous update, Nifty Pharma looks a good bet on the short side. After closed below its support level of 9300, it will further drag till 8800 and then to 8600 levels in days to come. Hurdle still remains around 9750, break and close above 9750 will negate our negative view in this sector.
Stocks like Dr. Reddy and Cipla looks weak on the charts. Traders can do short on the rise in these stocks for intraday purpose.
Top Stock Recommendations for today (08th May 2020)
Stock looks highly bullish on the daily chart and closed above its 52-week high. We will expect a sharp upside move from these levels in this stock. Traders can do buying around 545 levels for the sharp upside move till 585 levels and then to 600 levels in days to come. Support and stop loss remains at 510.
(Tata Consumer Products Ltd.)
Stock is trading in a positive trend and looks attractive on the chart. Catch this stock around 338 levels.
Traders can buy around 338 with a stop loss below 335 on a closing basis for an upside target of 355 +++ levels in days to come.
Sell this counter below 355 as stock is consolidating and looks weak on the chart. We will expect a breakdown below 355 levels.
Traders can sell below 355 with a stop loss above 375 on a closing basis for a downside rally of 335—330 levels in the coming days.
Traders can trade safely with levels only. More will update on Nifty 50 and Bank Nifty levels during market hours.