Nifty 50 traded two-way in yesterday’s session and ended the day with losses, forming a daily candle with a large red body. That’s the sign of weakness in the market. Feeble worldwide signs combined with expiry kept markets in the red. On the options front (March 25, 2021 expiry), across the board writing was seen in the call option strikes as Nifty trended lower.
Nifty IT index slid again after the technology stocks rally took a pause. The index found the markets bear in India to shed over 1.5% after a marginally higher opening. The Nifty Auto index was bearish, shedding almost 3% amid broad-based sell-off in the domestic markets. The sector was under pressure for the second consecutive day. Banking stocks were under extreme pressure. The Nifty Bank index slumped over 2%. PSU Banks stocks dragged the most by declining nearly 5%. Financial Services and Private Bank stocks also struggled. FMCG stocks, Auto, Infra, Energy indices slipped 2-3 percent. BSE Mid cap and Small cap indices fell 1.8—2.2 percent.
The 30-share BSE Sensex closed at 48440.12 down around -740.19 points, or -1.51%, over the previous day. The Nifty ended down around -224.50 points or -1.54% to close at 14324.90. Bank Nifty closed at 33006.40, closed with a loss of 286.90 points. Indian Volatility Index surged +1.08% percent to close at 22.70. Market breadth ended in favor of bears. Around 1544 stocks on the NSE closed with a loss, while 367 stocks ended with a loss, and 337 shares are unchanged.
Technical View on Nifty and Bank Nifty
Nifty traded lower forming a big red candle on the daily charts, a selling pressure can be seen from higher levels. Technically more weakness may come below 14,250 levels. 14,000—14,600 is the broad range for the Nifty in the upcoming session, and it’s going to be crucial for the short-term market scenario to stay at 14,000 levels. More panic may come below the support level.
As per technical levels, resistance laid down at 14,500 and support at 14,250. Above 14,500, it may test start a rally for 14,700-14,900 on the upside. Below 14,250 marks, the price may correct further to 14,100—14,000 on the downside.
According to Open Interest data, the maximum CE open interest stand at 14500 followed by 14,550 and the maximum PE at 14300 indicates a range of trading in the upcoming session. Valuation wise maximum CE & PE stand at 14,100 & 14,550 is a crucial level for the index.
Nifty Futures strategy for the day
Resistance comes at 14500 and support lays down at 14250.
Strategy – Fresh sell below 14,250 for the target of 14,100—14,000 or else it could test its resistance level of 14,550—14,700 on the upside.
Bank Nifty outperformed the Nifty index by -1%, both the indices closed in the red. The index ended with a loss and closed around 33006.40 (spot level). Technically, more selling pressure may come on sustain below 32,700 level, for the downside target of 32,300. Fresh buy can be done only above 33,600 levels for the upside target of 34,000-34,300.
Nifty Bank Futures strategy for the day
Resistance at 33,600 and Support at 32,700
Strategy – Either buy above 33,600 for the target of 34,000—34300 or Sell below 32,700 for the downside target of 32,300—32,000.
Top Stocks Recommendations for Today (26th March 2021)
Price has given an upside breakout to ascending triangle. Technically, It looks good for 135 levels
Trader may initiate long position for abovementioned levels with a stop loss of 117.
Future Stocks recommendation will update today during market hours as due to expiry day yesterday, technical charts have changed rates will be adjusted.
Traders can trade safely in Nifty, Bank Nifty and given stock recommendations with levels only. More will update during market hour.
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