Nifty and Bank Nifty both benchmark indices needs a fresh breakout to the prevailing range. Technically, Nifty 50 needs to close above 15266 and Bank Nifty above 36650 to extend its bull run.
Dalal Street Summary
Bank Nifty outperforms the benchmark index Nifty 50 and traded higher. Indian Markets inched higher during Friday’s session. Banking stocks were traded in the green. The upside was led by huge buying witnessed in heavyweight stocks especially in private banks. Nifty Private Bank surged by 0.79%. While Nifty PSU Bank was also marginally up. Stocks like Bandhan Bank, Bank of Baroda, Axis Bank, SBI, and HDFC Bank were also in the fast lane climbing around 1% each.
Metal stocks extended losses, Investors booked huge profits in metal stocks. FMCG stocks were under pressure as ITC dragging the sector most after December 2020 (Q3FY21) quarterly earnings. Major stocks listed on Nifty FMCG traded lower and the index was struggling to retain the 34,000 marks. Nifty Pharma stocks were bearish. Sun Pharma dragged the index most by shedding 2%. Divis Lab, Cipla, Lupin, and Dr. Reddys also struggled.
The 30-share BSE Sensex closed at 51544.30 up around 12.78 points, or 0.02%, over the previous day. Nifty ended down around 10.00 points or -0.07% to close at 15163.30. Bank Nifty closed at 36108.90, closed with a profit of 356.80 points. Indian Volatility Index plunged 4.35 percent to close at 22.04. Market breadth ended in favor of bears. Around 1029 stocks on the NSE closed with a loss, while 847 stocks ended with a loss, and 353 shares are unchanged.
Now, what ahead???
A fresh breakout awaited on Dalal Street.
Technical View on Nifty
On the weekly scale, Nifty 50 price formed a small bullish candle. On a daily scale, price formed a couple of indecisive candles and consolidated in a very narrow range of approx. 250-300 points. Technically, Bulls needs to close above 15266 to extend its rally to 15500-15700.
Below 15266 marks, the price is likely to continue its current consolidation mode. A fresh breakdown below 14980 may extend its weakness to 14800-14650 levels on the downside.
Price action and advance – decline ratio was in neutral. Nifty Implied Volatility index was cool off by 1.58 percent (Weekly Scale) to close at 23.05 marks. Cool down of VIX price gives a favor to Bulls. PCR shifted its support to 15000
Trend: Support lays down at 14980; Closing below 14980 may extend its down move to 14800-14650. Above 15300 it may give rally for 15500-15700.
F&O Analysis: According to Open Interest Data, Maximum Call open interest stand at 16000 followed by 15500 and Put at 15000 followed by 15100 suggests us a broad trading range for upcoming week. PCR stand at 15000 validate it as an immediate support level. Writing in Calls & Puts option left index indecisive for the next move.
Nifty Futures strategy for the week
Support 14980, Resistance 15266.
Either buy around support level(In panic) or above 15266 for next 250-500 points.
Nifty Futures strategy for the day
Support 15055, Resistance 15155.
Either buy around support level (in panic) or above 15155 for next 80-120 points.
Fresh sell would be seen only below 14980 level.
The financial index Bank Nifty trading range had been shrink to the narrow range for the last week. On a daily scale, price formed a “DOJI” kind of indecisive pattern through out the week. A Doji candle indicates there is some indecisiveness among the bulls and bears. Technically, index price needs to give a fresh breakout to the prevailing range of 35450 on the downside to 36650 on the upside to be decisive for the next move. Fresh buy would be seen only close above 36650. Below 35450, the price may witness a correction for 34500-34200 levels on the downside.
Trend: Key support lays down at 35000(Spot Level). Above 35000(Spot Level) marks, price rally for 36650-37700. Below 35000, it may correct for 34200-33800 marks on the downside.
Bank Nifty Futures strategy for the week
Support 35450, Resistance 36650
Either buy around support level (in panic) or above 36650 for next 800-1200 points.
Bank Nifty Futures strategy for the day
Support at 36000 and Resistance at 36400.
Either buy around support level (in panic) or above 36400 for next 300-500 points. Fresh sell would be seen only close below 35450 level.
Traders can trade safely with levels only. More will update during market hours.
Nifty Private Banks is still looking solid for the bulls
Nifty Private Banks has shown a positive strength and formed a bullish pattern on the daily chart. We will expect a sharp upside rally in upcoming trading sessions. Momentum indicator RSI too support our bullish view in this sector.
On the technical front, Nifty Private Banks has a hurdle at around 19400, break and close above 19400 will test 20000 and then to 20500 levels in days to come. Support at around 18800, break and close below 18800 will negate our positive view in this sector.
Bandhan Bank – Traders can go long above 342 for the upside to move till 360 and then to 370 levels in days to come. Support and stop loss below 320 on a closing basis.
Axis Bank – Stock formed a bullish pattern on the daily chart and ready for a fresh breakout. Hurdle around 755, break and close above 755 will touch 780 and then to 800 levels in days to come. Support around 725, our positive view will negate below 725 levels.
Top Stock Recommendations for Monday (15th Feb 2021)
Nan Denim Limited (NDL, Cash)
The stock is trading in a range and ready for a fresh breakout. Hurdle around 31, break and close above 31 will take it to 35 and then to 38 levels in days to come.
Support and stop loss below 27 levels on a closing basis.
Bank of Baroda (BOB, Futures)
BOB looks bullish on the daily chart and ready for another rally. Traders can buy the stock above 79.50 for the upside gain to 82 and then to 84 levels in days to come.
Support and stop loss remains at 76 on a closing basis.
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