Nifty 50 slipped into weakness in the afternoon on Friday’s trading session. The market seems to have started to show a lack of strength to witness an upside breakout of 14900. If Nifty fails to move/sustain above 14950 in next week, then one may expect the beginning of another round of downward correction from the highs. Immediate support is now placed at 14780 on the technical chart. On the options front (April 08, 2021 expiry), across the board writing was seen in the call option strikes as Bank Nifty trended lower.
Nifty IT stocks witnessed robust performance despite weak Global cues. The index was lifted by Mphasis being the top performer surging by almost 1.95%. IT major companies are all set to announce their fourth quarterly result ending March 2021 (Q4FY21) from next week. Heavyweight TCS and Infosys were trading marginally. Coverage and L&T Infotech zoomed by nearly 2% on the index. FMCG stocks traded broadly on a bullish note despite market volatility on Friday’s session. Heavyweight stocks such as HUL, Marico and Dabur drive the sectorial indices. Nifty FMCG index has outperformed the benchmark Nifty 50. Investors’ focus has now shifted to March 2021 quarterly result.
Bank Nifty extended its losses during the second half, as heavyweight private bank stocks witnessed sharp profit booking. However, this was not the case with PSU Bank stocks as they emerged among star performers. Metal company stocks were the top bear as heavyweights took a toll on the sector. Nifty Metal index underperformed benchmark Nifty 50. The performance comes despite the nonferrous metals price rise on the global front.
The 30-share BSE Sensex closed at 49591.32 down around -154.89 points, or -0.31%, over the previous day. Nifty 50 ended down around -38.90 points or -0.26% to close at 14834.90. Bank Nifty closed at 32448.05, closed with a loss of-334.75 points. Indian Volatility Index plunged -2.60% percent to close at 19.78. Market breadth ended in favor of advances. Around 1069 stocks on the NSE closed again, while 843 stocks ended with a loss, and 100 shares are unchanged.
Now, what ahead???
Nifty formed a long-legged DOJI Candle on the weekly chart. Technically traders should remain neutral on the long side, short term momentum appears to be slowly deteriorating and tilting in the favor of the bear. If the index closes below 14,800, then a sharp correction can be seen for the target of 14,450 to 14,250 levels whereas, for upside, bulls need a strong close above 14,900 levels for the upside target of 15,150—15,200 levels.
Events that may add volatility, Need to be watched
*12th April 2021, Monday –CPI (YoY) (Mar)
* 12th April 2021, Monday – Manufacturing Output (MoM) (Feb)
*12th April 2021, Monday-Cumulative Industrial Production(Feb)
* 12th April 2021-Monday- Industrial Production (YoY) (Feb)
*16th April 2021 Friday- FX Reserves, USD
*15th April 2021-Thursday Weekly Expiry
*FII and DII participation
Technical View on Nifty and Bank Nifty
Nifty rose during the day on April 09th but gave up a big part of their gains towards the end. As the result, it has formed a long-legged DOJI post a minor rise. This suggests mild caution on the part of participants. On up moves, 14984–15050 band could provide resistance to the Nifty while 14,716—14821 band could provide support.
On the options front, maximum put open interest was seen at 14,000 followed by 14,500 strike, while maximum call open interest was seen at 15,000 followed by 16,000 strike. Minor Call writing was seen at 15,000 then 15,200, while minor put writing was seen at 14,800 strike. Options data indicates a wider trading range 14,500 to 15,200 –for the Nifty in upcoming week.
Nifty Futures strategy for the day.
Support at 14700 and Resistance 14950.
Strategy – Either side of the breakout will give the next 100—200 points in the respective direction.
Bank Nifty opened negative and remained negative to rangebound for the most part of Friday’s trading session. Banking stocks witnessed weakness and dragged the index to the day’s low of 32,329.95 (Spot level). It closed with losses of 334.80 points, or 1 percent, at 32,448. It formed a bearish candle on weekly as well as daily scales. Technically, long upper shadows during the day indicated selling pressure at higher zones. Now till the index remains below 33,333 (Spot level) weakness could continue for the downside move towards 32,000 and 31,500, while on the upside, hurdles are seen at 33,000 and 33,500 levels.
Bank Nifty Trend – Key support levels lays down at 32,200 (Spot levels ). Above 33200 (Spot level), the price may bounce back for 34000 and then to 35000. Below 32200, it may correct for 31200—30500 marks on the downside.
Bank Nifty Futures strategy for the day.
Support at 32200 and Resistance at 33000.
Strategy – Either side breakout will give the next 500—80 points in the respective direction.
Nifty IT is ready to heading north for another rally
Nifty IT picked an upside momentum and ready to take a fresh rally. The price has given a successful breakout at its immediate resistance of 27180 and it has shown a positive strength with the formation of a “Marubozu Candle” pattern on the weekly chart. We will expect a sharp upside rally in upcoming trading sessions. Technical indicator RSI standard (14) showing divergence for the upside which is also supporting our bullish view in this sector.
From a technical perspective, we can see that after the consolidation phase, it formed a bullish candlestick pattern on the weekly chart. If Nifty IT is able to close above 27520 then we will see a sharp upside move till 28500 and then to 29200 levels in days to come. Hurdle around 26440, break below 26440 will negate our positive view in this sector.
Stocks like Mindtree and Coforge looks positive on the chart and we will expect an upside move in the coming days.
MINDTREE – Traders can go long above 2250 for the upside to move till 2300 and then to 2350 levels in days to come. Support and stop loss below 2200 on a closing basis.
COFORGE – Stock has formed a bullish pattern on the weekly chart and ready for a fresh breakout. Hurdle at 3185, break and close above 3185 will touch 3270, and then to 3310 levels in days to come. Support at 3090, our positive view will negate below 3090 levels.
Trade with the levels only.
Top Stocks Recommendations for Monday (12th April 2021)
INDRAPRASTHA GAS LIMITED (Cash)
Price has been trading and holding above all major averages. Technically, It looks good for 565 level on the upside.
Trader may initiate long position for abovementioned levels with a stop loss of 530.
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 548.
SUN TV (Futures)
Technical Analysis:- Stock has given a tremendous breakout of the consolidation range on the daily chart with volume. Stochastic oscillator showing positive buying in it. The stock has its support at 480 and resistance at 501 levels. If price break and sustain above 501 will take it to 525–535++ levels in days to come.
Trade idea:- Based on the daily chart study, traders and investors can go for buying above 501 for the upside target of 525–535++ levels with stop loss below 480 on a closing basis.
Trade with the levels only.
Traders can trade safely with levels only. Will update daily levels of Nifty and Bank Nifty every morning on our blog. So do visit regularly and mint money from market.
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