Today nifty has given a breakdown to its last 2-3 days consolidation and gave a new breath to bears in the market. Nifty & Bank weekly update the index ended lower for the third straight week and nifty closes below 11000 levels on the previous week closing due to fear of coronavirus 7 financial crunch with Yes bank. The BSE Sensex Index fell 2.32 percent to close at 37,576, its lowest level since September 19, 2019. The NSE Nifty 50 Index fell 2.57 percent to close at 10,979. The index was down 1.92 percent this week. For the week, the Nifty 50 index was down 1.92 percent and the Sensex was down by 1.88 percent.
The market breadth was in favor of the seller. Around 538 shares have advanced, 1875 shares declined, and 125 shares are unchanged. All the sectors ended on the lower note with a major fall in Nifty PSU Bank fell by 5 percent and Nifty Metal fell by 4 percent on the last trading session of the previous week.
According to Open Interest Data,Maximum Call open interest stand at 11500 followed by 11300 and put 10500 followed by 10900 suggests us a broad trading range for the index. Valuation wise maximum Call & Put stands at 11000 indicates a crucial level for index, PCR stand at 10800 validate it as a strong support level.Scattered data between 11500 to 10500 suggest volatile session ahead.
Nifty future breached it’s crucial as well as long term trend line support of 11000 which is not a good indication for time being.
Nifty future has support at 10900. Break and close below 10900 will take it to 10700—10600 levels. More and more downside panic will see on a weekly close below 10600 levels.
Else, we will see a dead cat bounce in Nifty future again till 11250—11400.
In the short term, chances are unlikely to breach the major sentimental hurdle of 12000.
Nifty & Bank Nifty weekly update we suggest traders can try to get an opportunity to sell Nifty future on the rise around 11250—11400 with stop loss above 11700 for the downside target of 10600.
Fundamentally, we are not strong but if we find positive news from global economies then we may see a healthy dead cat bounce till 11700—12000 levels too.
Take a cautious approach as India’s volatility Index is trading around 25. Huge volatility likely to remain continues because of global panic situations.
Nifty future strategy for the day
Support 11900 and resistance at 11000
Trading below 11900 will take it to 11820—11750, else it may test it’s resistance level again. A sharp recovery is likely to happen on a sustained above 11000 only.
Bank Nifty Future
According to Open Interest Data, Maximum Call open interest stand at 29000 followed by 28500 and put 27000 followed by 27500 suggests us a broad trading range for the day. Valuation wise maximum Call & Put stands at 28000 & 27500 respectively indicates a crucial immediate trading range, PCR stand at 27500 validate it as a strong support level.Scattered data between 27000-29000 suggest a volatile session ahead.
Bank Nifty too has support at 27500. Break and close below 27500 will see more downside panic till 26000—25000 levels in days to come else it could test its resistance level of 28500—29200 again.
Bank Nifty’s crucial sentimental resistance is at 30000.
Trade safely with levels only. If reversal seems then surely we will update during market hours.
Bank Nifty future strategy for the day
Support 27800 and resistance at 28200
Trading below 27800 may drag the price for 27500 on the downside, else it may test its resistance level again.
A sharp recovery likely to happen above 28200 in Bank Nifty future too.
Top picks for the week (9th March – 13th March 2020)
After a small correction stock has shown a continuous upside rally in this stock. We will expect more upside movement in it.
Traders can buy around 1630 levels with a stop loss below 1600 levels on a closing basis for the target of 1680 +++ levels in days to come.
Stock is trading in a negative trend and looks weaker below 198 levels on the chart.
Technically we will expect a downside rally in this stock.
Traders can sell below 198 levels with a stop loss above 208 levels on a closing basis for the
target of 185 levels in the coming days.
ITC LIMITED FUTURE
The stock is looking weak on the weekly chart. If it breaks and closes below the 178 level. We can see a major downside in this stock.
Traders can sell this stock below 178 with stop loss above 185 for the target of 148.
The stock is looking positive on the daily chart. If it breaks and closes above 1280 level. We can a good upside in this stock.
Traders can buy this stock above the 1280 level with stop loss below 1235 level for the target of 1345 level.