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Home » Nifty 50 navigates towards the lower end of the weekly range. Further consolidation can be witnessed in near term.

Nifty 50 navigates towards the lower end of the weekly range. Further consolidation can be witnessed in near term.

Indian Stock Market closed lower on Tuesday’s trading session. Large-cap stocks were among the top laggards as the major heavyweight stocks like HDFC Twins and Reliance Industries closed with a 2% cut along with an addition of fresh short positions. Nifty 50 underperformed the Bank Nifty index by ~0.35%.

 

Stock Market Summary

 

Equity indices ended with steep losses on Tuesday as rising COVID-19 cases dented investors’ sentiment. Nifty50 closed below the 14,500 marks. Pharma and FMCG stocks tumbled while bank stocks gained.

As per the provisional closing data, the barometer index, S&P BSE Sensex, fell 465 points or 0.95% at 48,253.44.

Nifty 50 index declined 137.65 points or 0.94% at 14,496.65. Bank Nifty index declined by -195.40 points or -0.60%.

SBI Life, ONGC and BPCL were major gainers while Tata Consumer, Cipla and Dr. Reddy were major losers from Nifty 50.

In the broader market, the S&P BSE Mid-Cap index fell 0.39% while S&P BSE Small-Cap index declined 0.57%.

The market breadth was negative. On the BSE, 1,402 shares rose and 1,563 shares fell. and 176 shares were unchanged.

 

Technical View on Nifty 50 and Bank Nifty

 

Nifty 50 

 

After a bounce from the lows of 14400 on Monday, Nifty moved towards the 14700—14750 zone, but selling pressure was seen at the resistance zone which took Nifty back to its immediate support levels, this type of price action indicated a range bound action in the indices. Nifty 50 closed below 14500 (Spot level) forming a big red candle on the daily chart. Technical Indicators 20-EMA and 50- EMA overlapping each other showing indecision in the Nifty 50 Index. On the intraday charts weakness from the highs can be easily seen.

Nifty Open Interest Put-Call ratio slid below 1, indicating that one should remain cautious with their buying position in the near term. On the options front, the Maximum CE open interest stand at 14800 followed by 14700 and maximum PE at 14400 indicates a range of trading in the upcoming session.

Nifty Futures strategy for the day

Technical Chart of Nifty
Technical Chart of Nifty

 

Resistance comes at 14800 and support lays down at 14400.

Strategy – Fresh sell below 14400 for the target of 14300—14150 or else it could test its resistance level of 14700—14800 on the upside.

 

Bank Nifty

 

Bank Nifty made a strong resistance in the 33000—33200 vicinity. The downward move happened because there are a lot of sellers in this resistance zone. Additionally, there is a descending trend line at the top, confirms weakness from the highs. Short Buildup was seen in the Bank Nifty futures segment. Falling PCR with an increase in open interest and falling in price indicates, that one should be cautious at higher levels.

 

Nifty Bank Futures strategy for the day

Technical Chart of Bank Nifty
Technical Chart of Bank Nifty

 

Resistance at 33000 and Support at 31600

Strategy – Either buy above 33000 for the target of 33600—33800 or sell below 31600 for the downside target of 31000.

 

 

Top Stocks Recommendations (5th May 2021)

 

ALKEM LAB (Cash)

 

Alkem Lab Trading Levels

 

Trading Levels of Alkem Lab
Technical Chart of Alkem Lab
 

The stock has formed an NR 7 candlesticks pattern on the chart. Traders are advised to buy this stock above 2800 for the upside target of 2840 and then to 2870 in coming days.

Support and stop loss below 2712 on a closing basis.

 

 

CUMMINSIND (Futures)

 

CUMMINSIND Trading Levels

Trading Levels of CUMMINS INDIA
Technical Chart of CUMMINSIND


The stock looks positive and closed above its resistance on the daily chart. Traders can buy the stock around 852 for the upside move till 890 and then to 900 incoming days.

Support and stop loss below 815 on a closing basis

 

Traders can trade safely in Nifty 50, Bank Nifty and Stock recommendations with levels only. To get real time market updates and news on your WhatsApp, click on the banner given below.

 

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We are a SEBI registered investment advisor. The above free information is for education/knowledge purposes. Read disclaimer on our website before investing.

 

 

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