Despite a green candle formation on a weekly scale, we cannot rule out the selling pressure. Technically, Nifty’s trading range is open for 14500 on the downside to 15300 on the upside. Now fresh trend would be seen only a close beyond either of the edges respectively. For time being it’s likely to consolidate in the afore mentioned range.
Markets witnessed a continued sell off, as across the board short selling was seen in the major heavyweights as a spike in the US Bond yields spook investor sentiment. Bank Nifty underperformed the Nifty Index by -0.7% with both the indices closing in the red. Financial heavyweights like SBI, HDFC Twins, AXIS Bank and ICICI Bank trended lower along with an addition of fresh short positions.
Nifty Media stocks resisted the market bears to trade marginally higher on Friday. The Index after a flat start, surged 1% higher in early morning trade. But the progress halted after the first hour of trade. Nifty Pharma stocks were bearish amid sell-off in the equity markets the index after a bearish start due to weak global cues continued to be under selling pressure. The Index shed over 0.50% during intraday trade on Friday. Indian IT company stocks were on a hothead, tracking global cues techs fall amid a surge in bond yield after fear over rising inflation expectations.
The 30-share BSE Sensex closed at 50405.32 down around 440 points, or-0.87 %, over the previous day. Nifty ended down around 142.70 points or 0.95% to close at 14,938.10. Bank Nifty closed at 35228.20, closed with a loss of 574.30 points. Indian Volatility Index surged -5.84% percent to close at 25.56. Market breadth ended in favor of bears. Around 1357 stocks on the NSE closed with a loss, while 556 stocks ended with gain, and 320 shares are unchanged.
Now, what ahead???
14500 level is crucial, Below 14500 marks, fresh selling would be seen, else a pullback for 15300 may be possible. On the flip side, fresh buying would be seen above 15300.
Events that may add volatility, Need to be watched
*10th March 2021, Wednesday -Weekly Expiry
*11th March 2021, Thursday – Public Holiday
*12th March 2021, Friday- CII(Jan), India, IIP(Jan), India
*13th March 2021, Saturday- US Federal Budget
*FII and DII participation
*F&O Positions- Likely to continue the weak move
Technical View on Nifty and Bank Nifty
On a weekly scale, Nifty 50 price formed a small green candle. On a daily scale, the price closed in a red dozi candle. Technically, the price gave a close below its 13 EMA, which indicates that bears are likely to continue their dominance. Although, a spinning top on a weekly chart and DOJI formation on a daily chart suggests a neutral and indecisive view ahead. The Bulls need to close above 15300 to extend its rally to 15450–15800. Below 15300 marks, bears may continue their dominance to 14700-14400 levels on the downside.
Price action and the advance-decline ratio were in favor of bears. Nifty Implied Volatility Index (VIX) ended at 9.18 percent lower at 25.56. cooling off in VIX price gives strength to bears. PCR shifted its support to 14800.
Nifty Trend: Support lays down at 14500. Closing below 14890 may extend its down move to 14710-14500. Above 15350 it may give rally for 15450–15850.
F&O Analysis – According to Open Interest Data, Maximum Call open interest stand at 15500 followed by 15300 and Put at by 14500 followed by 15000 suggests us a broad trading range for the upcoming week. PCR stands at 14800 validates it as an immediate support level. Writing in Calls & Puts option left index indecisive.
Nifty Futures strategy for the week.
Support 14500, Resistance 15300.
Strategy – Sell below 14890 for the target of 14700-14500, Else may bounce for 15055-15300.
Nifty futures strategy for the day
Support 14860, Resistance 15055
Either side of the breakout will give the next 100-200 points in the respective direction.
The financial index Bank Nifty underperformed the benchmark indices. Price formed the straight third weak candle on a weekly scale. Technically, below 34600 its may continue its downfall to 33300-30300 on the downside.
On a daily scale, the price has immediate support of 34600. Technically, trading below 34600 marks will favor the bears. Bulls will get strength only close above 36000 on the weekly time frame and continuation in buying would be seen only close above 37750.
Bank Nifty Trend
Key support lays down at 34600(Spot Level). Above 34600(Spot Level) marks, the price may bounce back for 36000-37700. Below 34000, it may correct for 33300-30300 marks on the downside.
Bank Nifty futures strategy for the week
Support 34600, Resistance 36000
Either side of the breakout will give the next 800-1200 points in the respective direction.
Bank Nifty Futures strategy for the day
Support at 34600 and Resistance at 35600
Either side of the breakout will give the next 600-800 points in the respective direction.
Top Stocks Recommendations for Monday (8th March 2021)
Cash Stock Update
On 4th March 2020, we have recommended two stocks as ISEC and Trident.
Trident, initiated entry successfully and gave a sluggish move. The stock ended flat to entry price. We closed the position on an intraday basis.
ISEC initiated entry successfully and closed marginally higher. We continue on our recommendation as per suggested levels.
We closed one of the recommended positions on 4th march 2021(Trident Closed). Our running positions are ISEC and suggest one other position in Kotak bank.
Please follow the stock as per level carefully
We continue to our stock recommendation(Recommended on 4th march 2021) on ISEC. Position initiated successfully and closed one percent higher.
Trader may hold a long position above 400 marks for 424-430 levels.
KOTAK BANK (CASH)
Kotak Bank stock price has been trading above its 38.2 percent retracement.
Technically, Trader may initiate long position around 1915 marks for the target of 1955–2000 levels.
HIND UNILEVER (FUTURES)
Catch it above 2215. If it breaks above 2220 then it will test 2300 and then to 2350 levels in days to come.
Support and stop loss below 2150.
Traders can trade safely in Nifty, Bank Nifty, and given stock recommendations with levels only.
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