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Home » Nifty & Bank Nifty Weekly Update – Last week Bears took control on Dalal Street. This week monthly expiry will add volatility in the market.
Equity Weekly Update Morning Nifty Update

Nifty & Bank Nifty Weekly Update – Last week Bears took control on Dalal Street. This week monthly expiry will add volatility in the market.

Nifty & Bank Nifty weekly Update 22-26 Feb 2021

 

Monthly expiry may add volatility to the upcoming week. Last week bears held control on the Dalal Street and forced the benchmark index Nifty price to close below 15000 levels. Technically below 14890 downfalls may continue for 14710 — 14500, else a pullback for 15150 — 15320 can be seen on chart.

 

Last Week’s Market Summary

 

 

Benchmark indices ended lower for the fourth consecutive day on February 19. Indian Markets briefly dipped to their lowest level in 2 weeks. Banking stocks were among the top laggards. Heavyweight private banks dragged the sector most. PSU Bank stocks which had consecutive record-high sessions recently, pulled away as the biggest state-run lender, SBI went into a negative area which further prompted hosing assessments in the overall sector. Nifty FMCG stocks opposed the market bears and traded higher. Auto stocks were under pressure tracking the overall market sentiments. The majority of stocks listed on the Nifty IT index were trading lower except heavyweights TCS and HCL Tech.

The 30-share BSE Sensex closed at 50889.76 down around 34.93 points, or -0.85%, over the previous day. The Nifty ended down around 137.20 points or 0.91% to close at 14981.80.

Bank Nifty closed at 35841.60, closed with a loss of 745.40 points. Indian Volatility Index surged 3.28 percent to close at 22.25. Market breadth ended in favor of bears. Around 1176 stocks on the NSE closed with a loss, while 716 stocks ended with a loss, and 342 shares are unchanged.

Now, what’s ahead???

14900 –14890 levels are crucial. Below 14890 bears may continue their downside journey, else a pullback for 15320 may be possible.

Events that may add volatility, Need to be watched in the upcoming week.



*25th February- Federal Fiscal deficit

*27th February – US Federal Budget

*FII and DII participation

*F&O Positions- Likely to continue the weak move

*Technical Levels

*Monthly Expiry

 

Weekly & Intraday view on Nifty and Bank Nifty

 

Nifty

 

On a weekly scale,  Nifty 50 price formed a bearish candle. On a daily scale, the price has been continuously on  a losing streak from the last four trading sessions. Technically, the price gave a close below 13 EMA on daily charts, bears are likely to continue their downside move till 14850–14710. Bulls need to close above 15155 to extend their rally towards 15320–15450. A fresh breakdown below 14890 may extend its weakness to 14710–14500 levels on the downside.

Price action and the advance-decline ratio was neutral. Nifty Implied Volatility Index (VIX) ended 0.95 percent higher at 22.25. Heat up in VIX price gives strength to bears. PCR shifted its support to 14900

Trend: Support lays down at 14890; Closing below 14890 may extend its down move to 14710-14500. Above 15150 it may give rally for 15320-15450.

 

F&O Analysis

 

According to Open Interest Data, Maximum Call open interest stand at 15200 followed by 15300 and Put at 15000 followed by 15400 suggests us a broad trading range for the upcoming week. PCR stands at 14900 validates it as an immediate support level. Writing in Calls & buildup Puts option gives a bear favors.

Nifty futures strategy for the week

Support at 14890, Resistance at 15155.

Strategy – Sell below 14890 for the target of 14710 OR Buy above 15155 for the target of 15320.

Nifty Futures strategy for the day

 

Technical Level of Nifty
Technical Chart of Nifty



Support at 14890, Resistance at 15000.

Either side of the breakout will give next 70-100 points move in the respective direction.

 

 

Bank Nifty



Financial benchmark index Bank Nifty resisted to continue its rally and showed a profit booking from the week’s high level of 37700. Now technically, 35400 is a crucial level for index, any trading and holding below 35400 will slid it further for 34500–34200 levels on the downside. On a daily scale, the price has been trading near its 13 EMA which laid down at 35726. Any closing below 35700 will favor bears. Technically, bulls will get strength only above 36600, and continuation in buying would be seen only close above 37750.

Bank Nifty Trend – Key support lays down at 35400(Spot Level). Above 35400(Spot Level) marks, price rally for 36650-37700. Below 35400, it may correct for 34200-33800 marks on the downside.

Bank Nifty futures strategy for the week

Support at 35400, Resistance at 36650.

Either side of the breakout will give the next 800-1200 points in the respective direction.

 

Bank Nifty Futures strategy for the day

 

Technical Chart of Bank Nifty
Technical Chart of Bank Nifty



Support at 35400 and Resistance at 36400.

Either side of the breakout will give the next 800-1200 points in the respective direction.

 

 

 

Open Interest Data Level
Open Interest Data

 

 

 

Sector Update

 

Nifty Realty is ready to enter in red zone
Technical Chart of Nifty Realty
Technical Chart of Nifty Realty

 

Nifty Realty looks slightly weak on the daily as well as on the weekly chart. It is taking correction at upper levels and ready to enter in a red zone. We will expect a sharp fall in this sector in days to come.

On the technical front, we have seen a weekly close near its major support of 343. If it’s able to close below 343 then we will see a sharp downside fall till 325 and then to 315 levels in days to come. Hurdle around 363, break above 363 will negate our negative view in this sector.

Stock like DLF and Sunteck looks weak on the technical charts and expects a downside move in the coming days.

DLF – The stock formed a weak pattern on the daily chart. Support at around 294, break and close below 294 will drag it to 282 and then to 270 levels in days to come. Hurdle and stop-loss above 321 levels.

SUNTECK – The stock has given a bearish engulfing on higher levels on the technical charts. Sell on rise around 360-365 will be the good strategy for the targets of 330 and then to 315 levels in days to come. Major hurdle around 380-385, close above 385 will see fresh upside move.

 

 

 

Top Stock Recommendations for Monday (22nd Feb 2021)

 

 

HERITGE FOODS (Cash)

 

HERITGFOOD Recommendation Level

 

Technical Chart of HERITGFOOD
Technical Chart of HERITGFOOD
 

The stock has formed a highly bullish candle on the weekly chart. Traders can go for buying at around 300 for the sharp upside move till 330 and then to 345 levels in days to come.

Support and stop-loss remain at 273 on a closing basis.

 

DR. REDDY (Futures)

 

DR REDDY Recommendation Level

 

Technical Chart of DR REDDY
Technical Chart of DR REDDY
 

DRREDDY stock has rebounded from major support levels. We can see a sharp upside move in the days to come. Traders are advised to go for buying in it around 4650 levels, for the upside targets of 4730 and then to 4760 levels in the days to come.

Support and stop-loss remain at 4570.



Traders can trade safely with levels only. More will update during market hours.

 

 

 

 

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

 

 

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Stock Portfolio For 2021

Stock Portfolio for 2021

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