On the weekly and monthly expiry day, we have seen bullish movement on the Dalal Street. Nifty heavyweight Reliance Industries shown it’s strength on technical charts and closed 6.3% higher. We have seen one sided up move in Reliance shares. Banking and Auto stocks felt some pressure while Energy and Realty stocks performed well. Nifty 50’s 25 shares ended the day in green while others 50 ended the day in red.
Stock Market Summary
Yesterday’s Indian stock market witnessed a rebound and settled with gains of over half a percent on the monthly expiry day. This up move came because of a strong spurt in the index heavyweight Reliance Industries. It prompted a gradual up move which further strengthened with support from select majors stock like Infosys, ITC, and Kotak Bank. Finally, Nifty settled around the day’s high to close at 17,536.20 levels i.e. up 0.70% while Bank Nifty closed in red at 37364.75 levels with a marginal loss of 0.2%.
On the sectoral front,
Nifty Energy up 2.66% & Nifty Realty up 1.94% were among the Top gainers in yesterday trading session. In Nifty Energy, Reliance industries skyrockets 6.03% after the company’s board resolved to adopt a scheme of arrangement to turn Gasification Undertaking into a wholly-owned subsidiary.
Nifty Auto (down 0.45%) & Nifty PSU Bank (down 0.3%) were the Top draggers of the market.
FII again were net sellers of the day, sold 2301 cores worth stock. While DII were net buyers of the day bought 1368 crore worth stock in yesterday session.
Major Gainer and Loser of Nifty 50
Reliance Industries (up 6.36%), ITC, Infosys, TechM & GAIL up from 1.32% to 1.78% were among the Top gainers yesterday.
Infratel, Maruti, Britannia & Indusind Bank was among the Top losers in yesterday’s trading session as fallen around 1.14 % to 1.39%.
Now, what’s next??
Markets lack decisiveness at current levels and it may continue for time being. In case of any rebound, Nifty may face some resistance from upper levels. Meanwhile, participants should continue with a stock-specific approach and maintain positions on both sides.
Technical View of Nifty and Bank Nifty
Major benchmark index Nifty 50 ended on a positive note on the monthly expiry, finished the F&O series above 17500.
Basically PHARMA, MEDIA, INFRA, and ENERGY sector supported the Index to sustain above 17500 levels.
Technically, Nifty takes the good support from the lower level and gives a breakout of the Falling Trend Line on hourly charts which indicated upside movement from the same level.
On the intraday chart, 20EMA crossed the 50EMA which indicated further upside momentum.
Technically, the Nifty has pulled up with the support of the Lower Bollinger Band formation and closed above 17500 levels. The indicator Stochastic has also reversed from the oversold territory with positive crossover, which indicated bullish strength in the index.
On the technical front, immediate support and resistance in Nifty 50 are 17,450 and 17,600 respectively (Spot levels).
On the options front, the Nifty open interest put-call ratio is around 1.02 levels. Maximum call open interest addition was seen at 17600 strike. Whereas maximum put open interest is around 17500 strike. This indicates a range of trading in the upcoming sessions.
Nifty Futures Strategy for the day
Strategy – Either buy above 17600 for the targets of 17670–17720 or Sell below 17500 levels for the downside targets of 17440—-17360.
Bank Nifty started the day on a positive note and went on to climb higher levels for the most of the time but was unable to do that and continued to trade in a tight range above 37100 on the monthly expiry. Finally the index ended in red.
Technically, financial index continued to trade in the Falling Parallel channel for the last one month which indicated that high are sold and the bottom is bought is a good opportunity in upcoming days.
All the Private Bank ended in red except KOTAK BANK.
Nevertheless, the bearish trend remains firmly in place, as mostly all the moving average maintains their bearish slope. Also, the Relative Strength Index (RSI) indicator has lost its bullish strength and stabilized below 50 on the hourly chart.
On the technical front, immediate support and resistance in Bank Nifty are 37200 and 37500, respectively.
On the options front, the Bank Nifty open interest put-call ratio is around 0.83 levels. Maximum call open interest addition was seen at 37500 strike. Whereas the maximum put open interest is around 37300 strike. This indicates a range of trading in the upcoming sessions.
Bank Nifty Futures strategy for the day
Strategy – Either buy above 37450 for the targets of 37600—37700 or Sell below 37300 levels for the downside targets of 37200–37000.
Top Stock Recommendations for today (26th November 2021)
After a short correction, the stock has given a sharp upside move and formed a strong candle. We will expect another upside rally in days to come.
Strategy – Traders can buy the stock on dips around 505 for the upside move till 525 and then to 540 levels in days to come. Support and stop loss below 480.
Godrej Consumer Products Futures, stock has given a trendline breakout on 30 minutes time frame and also taking support from 200 days moving average. If it breaks above yesterday’s high then we will expect more upside move-in the coming days.
Strategy – Traders can grab it around 925 for targets of 940 and then 950 in upcoming sessions. Support and stop loss will be below 910 on a closing basis.
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