Indian Stock Market witnessed a positive day of trade. Nifty 50 has recovered sharply on Friday but it failed to close above an important previous bottom level of 14529. Nifty 50 outperformed the Bank Nifty index by 0.5%, with both the indices closing in the green. On the options front (April 01, 2021 expiry), across the board writing was seen in the put option strikes as Nifty trended higher.
Stock Market Summary
Nifty IT rallied on Friday’s trading session tracking positive cues. Tech Mahindra led the rally and Larsen & Turbo Infotech followed closely. Mphasis was only laggard in the sector. Auto stocks witnessed sharp buying sentiments amid broader bullish markets tone. However, in the sector, investors now focus has now shifted to monthly sales data and price hikes which will commence for the next month. Amid positive market as cues.
Nifty realty was trading in the green. Investors were upbeat on stock markets despite rising in Covid -19 cases in India. FMCG stocks were bullish with heavyweights took the charge. The index joined the market bull on Friday to surge nearly 2%.
The 30-share BSE Sensex closed at 49008.50 up around 568.38 points, or+1.17 %, over the previous day. Nifty ended up around 182.40 points or 1.17% to close at 14507.30. Bank Nifty closed at 33318.20, closed with a gain of 311.80 points. Indian Volatility Index plunged 9.02% percent to close at 20.65. Market breadth ended in favor of advances. Around 1153 stocks on the NSE closed again, while766 stocks ended with a loss, and 96 shares are unchanged.
Now, what’s ahead???
Nifty is facing stiff resistance around the 14800-14700 zone and a convincing move beyond this resistance would open further upside. On the dips,14250 levels could offer support to the market. Traders will watch these levels closely next week. If nifty fails to trade convincingly above the 14550 marks that will confirm a lower bottom on weekly charts and portend further weakness in times to come.
Events that may add volatility, Need to be watched
* 31st March 2021, Wednesday –Federal Fiscal Deficit (Feb)
*31st March 2021, Wednesday – Infrastructure Output (YoY) (Feb)
* 31st March 2021, Wednesday-Current Account (USD)
*31st March 2021, Wednesday-Foreign Debt(USD)
*31st March 2021 Wednesday- Foreign Debt (USD) (Q4)
*1st April 2021 Weekly Expiry
*2nd April 2021 FX Reserves USD
*FII and DII participation
Technical View on Nifty and Bank Nifty
On the weekly scale, Nifty formed a red candle, Considering a sell signal on the weekly charts, it has bounced from the low of 14,350. If Nifty able to trades above 14,550 levels then the probability of upside shall remain higher from these support levels. The Bulls need to close above 14550 levels to extend its rally to 14700—14800.
According to Open Interest data, the maximum CE open interest stand at 14700 followed by 14800 and the maximum PE at 14400 indicates a range of trading in the upcoming session. Valuation wise maximum CE &PE stand at 14500 and 14400 is a crucial level for the index.
Nifty Futures strategy for the day
Support at 14400 and Resistance at 14700.
Either side of the breakout will give the next 100—200 points in the respective direction.
Bank Nifty underperformed the Nifty index during the week and formed the bearish candle on the weekly charts. Technically, the bank nifty index needs to hold above 33,000 to witness a bounce towards 34,500 levels. While on the downside support is seen at 32,500 and 32200 levels.
Bank Nifty Trend : Key support levels lays down at 33,000(Spot levels ). Above 33800 (Spot level), the price may bounce back for 34500 and then to 35000. Below 33000, it may correct for 32500—32200 marks on the downside.
Bank Nifty futures strategy for the day.
Support at 33000 and Resistance at 33,800.
Either side breakout will give the next 500—800 points in the respective direction.
Bulls likely to engage in Pharma sector
After a correction from higher levels, Nifty Pharma is again moving its force towards the bull side. Due to the rise in demand for pharma products, we will expect a strong bull move-in days to come in this sector.
On the technical front, Nifty Pharma formed a bullish pattern on the weekly chart and given a weekly close above its major resistance. Momentum indicator RSI too supports our bullish view in this sector. Now Nifty Pharma has support around 11300 levels and upside move we will expect till 13000 and then to 13500 in days to come.
Break and close below 11300 will negate our positive view in this sector.
Stock like Sun Pharma and Dr. Reddy looks attractive for a fresh bull run in days to come. Traders can buy on dips in this stock for an upside move.
Sun Pharma-Stock is taking support from lower levels. Traders are advised to do buying above 600 levels for the upside target of 630 and then to 660 levels in the days to come. Support and stop loss below 560 on a closing basis
Top Stocks Recommendations for Tuesday ( 30th March 2021)
LALPATH LAB (Cash)
Price has been trading around a lifetime high, supported by RSI. Technically, It looks good for 2700 levels.
Trader may initiate long position for abovementioned levels with a stop loss of 2440.
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.
GODREJ CONSUMER (Futures)
Technical Analysis:– The stock has formed a bullish “Marubozu Candle” on the weekly chart. Stochastic RSI oscillator showing positive buying in it. The stock has its support at 670 and resistance at 720 levels. If price break and sustain above 720 will take it to 770++ levels in days to come. More and more power will generate above 770 levels and could test 800++ levels in days to come.
Trade idea:- Based on the weekly chart and study, traders and investors can go for buy above 720 for target looks 770–800++. Stop loss below 670 on a closing basis. Trade with the levels only.
Traders can trade safely in Nifty, Bank Nifty and given Stock recommendation with levels only. More will update during market hours. To get real time FREE market updates, news and recommendations. Click on the banner given below.
We are a SEBI registered investment advisor. The above free information is for education/knowledge purposes. Read disclaimer on our website before investing.