As we have mentioned in our yesterday update that Nifty 50 is ready to burst and today it claimed 9300 whopping gain of 285 points. Nifty Bank was the best performer in yesterday session.
Indian benchmark indices ended in green with strong Cues from Europe are positive while Dow Jones’s future has extended gains to trade higher. The BSE Sensex ended 3.25 percent higher to close at 31,605 while the NSE Nifty 50 index managed to close above the 9,300 marks at 9,314 and up by 3.2 percent before the monthly F&O expiry.
The market breadth was in favor of buyers. Around 1363 shares have advanced, 939 shares declined, and 163 shares are unchanged. On the sectoral front, the Nifty Bank was the top performer ending with gains of over 7%. Other sectors to end in gains included Nifty I.T. (up 3%), Nifty Metal (up 2.6%), and the Nifty PSU Bank index (up 3.4%) while Pharma index ended marginally lower on the Wednesday trading session.
Technical View of Nifty 50 and Bank Nifty
As per expectation Nifty 50 burst and reclaimed 9300 on the chart.
According to Open Interest Data of Nifty 50, the Maximum Call open interest stands at 9500, and Put at 9000 suggests a broad trading range for the index.
Valuation wise maximum Call & Put stand at 9300 indicates a crucial level for the index. PCR stands at 9000 validate it as an immediate support level.
Nifty (future) strategy for the day
Support lays down at 9100, while upside resistance comes at 9350.
Trading Above 9350 may extend its rally to 9420—9480, else may test 9200-9100 on the downside.
On the other hand, Nifty Bank outperformed today and claimed 18800 with more than 7% intraday gain.
Trend- below 19000, we are in the bear grip. Still need to cautious.
Nifty Bank (future) strategy for the day
Support at 18500 and Resistance at 19200
Either side of the breakout will five 400-600 points in the respective direction
Sell It below 18500, Price may test 18000-17800 levels on the downside. Maintain Stop loss at 19000.
Holding above 18500, it may test a stretch for 19000-19200.
Nifty Metal looks bright for bull run.
In the last trading session, Nifty Metal performs well and looks bright for the bullish move in the upcoming session. All the stocks are in this sector perform well and look good for a bull run. Now hurdle around 1815, break and close above 1815 will take it to 1900 and then to 2000 levels in days to come. Support around 1700, break below 1700 will see fresh negative move in this sector.
Stocks like Hindalco and Coal India look positive on the charts. Traders can go long on dips in these stocks for the day.
Top Stock Recommendations for today (28th May 2020)
RBL BANK (Future)
Grab RBL Bank above 120 as stock gives a sharp upside reversal on the chart.
Traders can buy above 120 with a stop loss below 110 levels on a closing basis for an upside target of 130—135 levels in days to come.
TATA CHEM (Future)
The stock looks positive and ready for an upside rally on the chart. Catch it around 305 levels.
Traders can buy around 305 with a stop loss below 295 levels on a closing basis for an upside movement till 325—330 levels in the coming days.
Carborundam Universal (Cash)
Today we have seen a sharp reversal on the chart from lower levels.
Now we will expect a sharp upside move in this stock from current levels.
Traders can do buying around 214 for the fresh upside move till 230 and then to 240 levels in days to come. Support and stop-loss remain below 200.
Traders can trade safely with levels only. More will update during market hours.