Indian Stock Market witnessed a sharp sell-off as an across-the-board selling frenzy weighed in. The sharp rise in Covid -19 cases has dented investor sentiments and increase fear of harsh restrictions which would impact economic activity. Nifty if sustain below 14700 then we may see a further downside till 14300 levels on technical charts. On the options front (April 08, 2021 expiry ), across the board writing was seen in the call option strikes as Nifty trended lower.
Bank Nifty Index was the top bear of Monday’s trading session. In both private and state-owned banks we have witnessed a broad-based sell-off. The rapid rise in Covid -19 cases has taken a toll on market sentiments as major states announce partial lockdown. Nifty Pharma index traded lower heavyweights stocks Dr. Reddy and Biocon drag. Sun Pharma, Lupin, and Divis Lab also traded in the red.
Auto stocks were under pressure. Auto companies are on a speedy recovery from the impact of major lockdown imposed in 2020 as sales are improving for the past few months, However, states opting for partial lockdown and rising Covid-19 cases has damped investor sentiment. All stocks listed on the Nifty Auto index were trading in the red. Technology company stocks were in the fast lane despite overall market sentiments turned bearish. Investors focus now shifted to fourth quarterly and yearly performance for fiscal year FY21. Metal stocks rallied. Adani Enterprises, SAIL keep bears at bay, NMDC hit new highs to lift the sector.
The 30-share BSE Sensex closed at 49159.32 down around 870.51 points, or-1.74 %, over the previous day. The Nifty ended down around 229.60 points or -1.54% to close at 14637.80. Bank Nifty closed at 32678.80., closed with a loss of 1179.20 points. Indian Volatility Index surged 6.14% percent to close at 21.22. Market breadth ended in favor of decline. Around 1308 stocks on the NSE closed with a loss, while 647 stocks ended with a loss, and 343 shares are unchanged.
Technical View on Nifty and Bank Nifty
Nifty formed a bearish candle on the daily charts. We have witnessed a huge sell-off in it post opening. Nifty closed the day at 14638 (Spot levels) with a loss of 1.50%. The overall structure looks narrow consolidation as the index rejected the 14900 levels. If the index managed to sustain above the 14700 zones then we may see a relief rally. Sustained weakness below the 14500 area will be seen as a fresh trigger for bearish trades.
As per technical levels, resistance laid down at 14,700 and support at 14600. Above 14,700, it may test start a rally for 14800–14900 on the upside. Below 14600 marks, the price may correct further to 14500—14250 on the downside.
According to Open Interest data, the maximum CE open interest stand at 14800 followed by 14900 and the maximum PE at 14500 indicates a range of trading in the upcoming session. Valuation wise maximum CE & PE stand at 14600 & 14700 is a crucial level for the index.
Nifty Future strategy for the day
Resistance comes at 14700 and support lays down at 14600.
Fresh sell below 14600 for the target of 14500—14250 OR else it could test its resistance level of 14700—14900 on the upside.
Bank Nifty underperformed the Nifty index by -2% with both the indices closing in the red. Both private banks and state-owned banks were under pressure. The index ended with a loss and closed around 32678.80 (Spot levels). Technically more selling pressure may come below 32200 levels for the downside target of 31800. Fresh buy can be done only above 33050, for the upside target of 33500-33800.
Nifty Bank Futures strategy for the day
Resistance at 33050 and Support at 32200
Either buy above 33050 for the target of 33500—33800 or sell below 32200 for the downside target of 31800—31500.
Top Stocks Recommendations for Today (6th April 2021)
Price has been following the Gartley pattern. Technically, It looks good for 139-145 levels on the upside.
Trader may initiate long position for abovementioned levels with a stop loss of 126.
Price has given a lifetime high on a closing basis
Technically, It looks good for the next 5% to 35 % move on the upside
Trader may initiate long position for abovementioned levels with a stop loss of 1385.
DEEPAK NITRITE (Futures)
The stock looks weak on the daily chart and ready to break its support level. Traders can go short below 1600 for the downside target of 1550 and then to1520 levels.
Hurdle and stop-loss above 1640. Trade with the levels only.
Traders can trade safely in Nifty, Bank Nifty and given stock recommendations with levels only. More will update during the market hours. To get real time FREE updates and news on your WhatsApp just click on the banner given below.
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