Nifty 50 fell from the intraday high and finally ended with minor gains. Metal stocks led the sectorial rally on a strong outlook supported by rising steel prices and production. Midcap stocks outperforming the benchmark indices. If Nifty able to get past the 14950 levels on a closing basis, we could move higher to 15300—15400, any drift downward and break 14500, we could fall further to 14200. On the options front (April 08, 2021 expiry), across the board writing was seen in the put option strikes as Nifty trended higher.
Nifty Metal stocks skyrocketed in an aftermath of monthly production data, outperforming the benchmark index Nifty on Thursday’s trading session. All stocks listed on the index were trading in the green JSPL, SAIL, JSW STEEL were the top gainers. IT stocks were in the fast lane, with investors now focusing on March 2021 (Q2FY21) quarterly result with major technology giants set to announce their financial performance from the next week. TCS, Wipro, and Mindtree drive the index. Amid rising covid cases, markets are trading on a bullish note.
Nifty auto stocks lift the benchmark Nifty. Ashok Leyland was the top bull soaring by almost 5.00%. Tata Motors lifts the index climbing by almost 3%. Nifty Bank gave up on 33,000-mark and was trading on a lower note. Heavyweight stocks such as HDFC Bank, SBI, IndusInd Bank, and Axis Bank witnessed selloff, dragging the index down. The Index also underperformed benchmark Nifty 50.
The 30-share BSE Sensex closed at 49746.21 up around 84.45 points, or +0.17 %, over the previous day. The Nifty ended up around 54.80 points or 0.37% to close at 14873.80. Bank Nifty closed at 32782.80, closed with a loss of -208.40 points. Indian Volatility Index surged +0.32% percent to close at 20.31. Market breadth ended in favor of advances. Around 1233 stocks on the NSE closed with gain, while 668 stocks ended with a loss, and 353 shares are unchanged.
Technical View on Nifty 50 and Bank Nifty
After showing strength in the morning session on Thursday, Nifty witnessed some profit booking from higher levels and closed around 14873 positive around 50 points. A DOJI candle was formed on the daily chart with upper and lower shadows. Technically the short-term trend of the Nifty is positive with range-bound action. The market is now placed near the make or break-crucial area of 14900 (Spot level) levels. The short-term chart pattern indicates minor intraday weakness or consolidation movement around 14900 levels before showing a sustainable upside breakout in the short term. 14800is now immediate support in it.
As per technical levels, resistance laid down at 15,000 and support at 14800. Sustain above 15,000, it may test start a rally for 15100-15200 on the upside. Below 14800 marks, the price may correct further to 14730—14600 on the downside.
According to Open Interest data, the maximum CE open interest stand at 15000 followed by 15100 and the maximum PE at 14800 indicates a range of trading in the upcoming session. Valuation wise maximum CE & PE stand at 14900 & 14800 is a crucial level for the index.
Nifty Future strategy for the day
Resistance comes at 15000 and support lays down at 14800.
Strategy – Fresh sell below 14800 for the target of 14730—14600 or else it could test its resistance level of 15000—15100 on the upside.
Bank Nifty underperformed the Nifty 50 index by ~1% with major financial heavyweights contributed to the majority of the index losses. It ended with the loss and closed around 32782.80(Spot level). Technically selling pressure may continue below the 32600 marks for the downside target of 32000. Fresh buy can be done for upside targets of 34000–34300, only above 33500.
Nifty Bank Futures strategy for the day
Resistance at 33500 and Support at 32600.
Strategy – Either buy above 33500 for the target of 34000—34300 or sell below 32600 for the downside target of 32000—31800.
Top Stocks Recommendations for Today (9th April 2021)
PRISM JOHNSON (Cash)
Catch it around 138. Break above 140 will test 145 and then to 147 levels in days to come.
Support and stop loss below 127.
The stock looks bullish on the daily chart and ready for another rally. Traders can buy above 342 for upside move till 350 and then to 370 levels in days to come.
Support and stop loss below 320.
Trade with the levels only.
Traders can trade safely in Nifty 50 and Bank Nifty with levels only. More will update during the market hour. To get real time stock market updates and news on your WhatsApp, click on the banner given below.
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