17th March 2020
Bloodbath continues in the Indian equity market. Today Nifty plunged by more than 800 points while Bank Nifty at one point of time was down by 2100 points. Read our today’s update on Nifty and Bank Nifty.
Nifty & Bank nifty plunged over 7%, S&P BSE Sensex fell by 2700 points. Indian stock market ended lower after a weak clue from Asia and European markets with a highly volatile session due to rising cases of coronavirus in India as well as globally. The BSE Sensex fell 7.96 percent to close at 31,390. The NSE Nifty 50 Index fell 7.6 percent to close at 9,197. All of the 30 shares in BSE Sensex ended with losses, with 24 of them ending at a 52-week low.
The market was in favor of sellers. Around 430 shares have advanced, 1987 shares declined, and 152 shares are unchanged. All sectoral indices ended with losses, led by the Metals index that closed with a loss of 8.9 percent. Nifty Bank, Nifty I.T. & Nifty Realty was the other indices that ended with a fall of 8 percent or more on the Monday trading session.
Technical View of Nifty & Banknifty:
Yesterday we have witnessed, another blood bath in the Indian stock market followed by global trends.
Technically, Nifty has been trading in the bear zone. Any high would be a selling opportunity for index below 9600. According to Open Interest Data, Maximum Call open interest stand at 10000 and Put at 8100 suggests us a broad trading range for the index. Valuation wise maximum Call & Put stands at 9500-9000 respectively indicates a crucial level for index, PCR stand at 9200 validate it as a strong support level. Writing in call and long buildup in put option indicates weak move ahead
So, traders can try to get an opportunity to sell Nifty future on the rise around 9300 with stop loss above 9600 for the downside band of the range.
Nifty future strategy for the day
Support 9000 and resistance at 9550
Trading below 9000 will take it to 8800-8500, else it may test it’s resistance level again. A sharp recovery is likely to happen on a sustained above 9600 only.
Bank Nifty too has support at 22900 and resistance at 23800. Break and close below 22900 will see more downside panic till 21000-19000 levels in days to come else it could test its resistance level of 24000 again.
Bank Nifty future strategy for the day
Support 22700 and resistance at 24000
Trading below 22700 may drag the price for 21000 on the downside, else it may test its resistance level again.
Concentrate on below stock levels …
Stock is trading in a negative trend and looks weaker on the chart. We will expect more downside movement in it.
Traders can sell around 900 levels with a stop loss above 960 levels on a closing basis for the target of 800 levels in days to come.
After a range-bound trading stock gives a sharp downside breakout and looks more panic below 368 levels on the chart. Technically we will expect a downside rally in this stock.
Traders can sell below 368 levels with a stop loss above 395 levels on a closing basis for the target of 330 levels in the coming days.