Stock Markets witnessed a lack luster trade during the week, with the benchmark index closing on a flat note as the option writers took the center stage. Nifty outperformed the Bank Nifty index, as the index continued to trade with a positive bias. Banking Stocks saw marginal profit booking with stocks like Kotak Bank & Axis Bank saw an unwinding long positions.
Indian benchmark index ended on a flat note for the third consecutive session due to profit booking in large caps which has kept the market lackluster. Sensex and Nifty remained choppy throughout the session due to weak global cues ahead of the European Central Bank (ECB) meet outcome. With this, the index ended the week with a nominal gain of 0.30% each. Sensex closed with 55 points or 0.09% higher at 58,305.07. Nifty settled with a gain of 16 points, or 0.09 %, at 17,369.25.
The Nifty Mid cap and Small cap indices have been outperforming the benchmark index for the past couple of sessions. The index clocked decent gains as the Midcap ended 0.56% higher and the small-cap gain of 0.52% higher.
Nifty has been moved higher and testing fresh lifetime highs from the last six weeks, the bullish momentum can be continued, which can take the index higher towards 17812 levels with the support of 16750 levels.
Nifty Media jumped almost 3 percent while the metal gained 1.98% in week and FMCG sectors rose 0.70% . The realty index, on the other hand, fell nearly 0.74 % on Thursday.
Bharti Airtel gained 4.25 % emerged as the top weekly gainer, followed by HDFC up 2.58 % and HCL Tech up 2.08 % in the Sensex.
Increasing COVID-19 cases across the globe also added to the market worries. Though the much-awaited US job data fell below market estimate, it gave relief to the market on hopes of continued economic support by the Fed.
Technical View on Nifty and Bank Nifty
Nifty witnessed some sideways trading sessions during the week and closed the week almost on a flat note.
Some profit booking seen from the higher levels, but all the dips are being utilized by the traders to accumulate long positions.
Last week we have recommended taking some money off the table, that strategy has worked well.
Though we have seen some profit booking during the week, there is no sign of weakness on the chart is seeing.
The weekly timeframe chart is still forming higher highs and higher lows. Textile sector stocks has also joined the market rally.
Looking at the daily chart it is continue to trade above the rising trend line that has held the important lows of the last few months.
Index continued to trade above the key moving averages such as 20 and 50 day SMA, and also the daily stochastic is maintaining its bullish crossover, indicating the positive bias. The momentum indicators like RSI and MACD stay positive bias.
Now, Important support stands at 17200 followed by 17000 levels in the short-term perspective, for upside immediate target looks 17500 levels. If index managed to sustain above these levels then it may move towards 17700 levels.
Nifty Open Interest Put Call Ratio is around 1.45 levels, maximum call open interest is around 17400 followed by 17500 levels. Maximum put open interest is around 17200 levels indicates a range of trading in the upcoming session.
Nifty Futures strategy for the day
Resistance at 17500 and Support at 17300.
Strategy – Either buy above 17500 for the targets of 17600—17700 or Sell below 17300 levels for the downside target of 17100.
Bank Nifty index hovered around the 37000 levels during the week around 36765.95 levels.
It has formed a double top kind of pattern on the weekly chart, the first top was made in the second week of February and the second top made this week.
Now it has to give a close above the 37300 levels to move towards its previous highs, and also to touch new highs.
Like the previous week, this week also index continued to make bullish structure on the higher timeframe, with every dips towards the support levels can be used to accumulate long positions.
On the 30-min time, the frame chart index is trading above the 200-period EMA which is placed at 36000 levels and will provide support on the falls.
A mixed type of performance seen from both PSU’s and PRVATE Banks
Bank Nifty maximum Call Open Interest is around 0.93 levels, maximum Call OI is seen around 37000 levels whereas maximum Put OI is seen around 36000 levels indicates a range of trading in the upcoming session.
Nifty Bank Futures strategy for the day
Resistance at 37000 and Support at 36600
Strategy – Either Buy above 37000 for the targets of 37250—37400 or Sell below 36600 levels for the downside target of 36000.
Top Stocks Recommendation for this week
The stock is trading around an all-time high and looks good on the charts. We will expect a major breakout at this level in the stock.
Major resistance around 500, break and sustain above 500 will see fresh upside move till 530 and then to 550 levels in days to come.
Strategy – Traders can go for buying above 500 for the initial target of 530 and then to 550 levels in days to come. Support and stop loss below 470, break below 470 will negate our bullish view in the stock.
ABFRL (SEP) contract formed a bullish triangle pattern on two hourly charts. After breakout price consolidates near the previous support level. Buyers accumulate stock for upside moves. The pattern will be active after the price break the level of 217, then it can touch the upside level of 227 in the upcoming days.
Strategy : Buy ABFRL (SEP) contract above 217 level for the first target of 222 level & further target of 227 level, maintain stop loss of 212.
Traders can trade safely in Nifty, Bank Nifty and Top Stock Picks with levels only. More updates will provide during market hours on our Telegram Channel and to our WhatsApp followers. If you want to join our FREE WhatsApp broadcast list then click on the image given below.
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