Nifty continued their downward move backed by Pharma and IT. Now technically, immediate support is placed at the 15,077–14980 zone and resistance is coming near the 15,270–15,350 zone. Index price likely to trade in range.
Yesterday, IT & Pharma stocks have been under pressure, and the sector continued to perform on a lower note. Nifty IT index was among the top laggards dragging the benchmark Nifty 50. Heavyweights stocks like TCS, HCL Tech, Wipro, and Infosys played a spoilsport, also weak global cues swayed performance. Nifty Media was trading almost 2% higher on Wednesday’s trading session. Nifty Metal stocks were engaged in subdued trade. Privatizations’ hopes continue to sway investors’ sentiment on the upside in PSU Bank stocks for the second straight day on Wednesday, state-run banks were among the top picks.
On the contrary, private banks were among the laggards limiting the gains in the overall banking sector. Nifty FMCG was under pressure as heavyweights stocks drag the sector most. Nestle was the underperformer followed by HUL and Emami which also weighed in the performance. Also, a bearish market tone added to the woes. Auto stocks rallied a bit to turn flat after remaining bearish for most of the day. Motherson Sumi, Hero MotoCorp, and Ashok Leyland led the advances while Maruti dragged the most. Nifty Pharma dips 1.5% led by a huge selloff in heavyweights Lupin, Dr. Reddy’s Lab.
The 30-share BSE Sensex closed at 51703.83 down around 400.34 points, or -0.77%, over the previous day. The Nifty ended down around 104.60 points or 0.68% to close at 15208.90. Bank Nifty closed at 36910.90, closed with a loss of 187.50 points. Indian Volatility Index plunged 1.26 percent to close at 21.50. Market breadth ended in favor of bears. Around 922 stocks on the NSE closed with a loss, while 977 stocks ended with a loss, and 330 shares are unchanged.
Technical View on Nifty & Bank Nifty
Bears continued their move and forced to slip price 15165 levels. Nifty has ended 115.55 points lower at 15197.9 marks. Technically fresh breakout above 15350 will allow riding for 15510 levels, fresh selling would be seen close below 15150, Below 15150 price may test 15070-15020 on the downside.
Nifty Trend – As per technical, resistance laid down at 15340 and support around 15100. Every low is a buying opportunity around 15300 for the upside target of 15510.
According to Open Interest Data, the Maximum Call open interest stand at 15300 followed by 15400 and the maximum put at 15000 followed by 15200 indicates a narrow range of trading in the upcoming session.
Valuation wise maximum Call & Put stand at 15200 is a crucial range for the index. PCR maintained its support to 15100 levels.
Nifty futures strategy for the day
Resistance comes at 15270 and Support lays down at 15150
Either side of the breakout will give the next 70-100 points in the respective direction.
Bank Nifty kept pace with benchmark indices and ended 0.62 percent lower at 36864.55. Now, Technically, the Above 36700 price is likely to continue its rally for 37700-38600 levels on the upside, else may test 36400-35500 on the downside.
Trend – Technically, immediate support comes at 36700 marks. Above 36700 it may rally for 39100, else may test 35500-34500 on the downside.
Nifty Bank Futures strategy for the day
Resistance at 37400 and Support at 36700.
Either side of the breakout will give the next 400-700 points in the respective direction.
Traders can trade safely with levels only. More will update during market hours.
Top Stock Recommendations for today (18th Feb 2021)
After a long consolidation, now the stock is ready for the fresh breakout. Traders can do buying above 208 for the sharp upside rally till 220 and then to 228 levels in days to come.
Support and stop loss remains at 195 on a closing basis.
Hero Moto Corp (Futures)
Heromoto Crop, stock has given a tremendous breakout of the consolidation range on the daily chart with volume. We will expect a sharp upside move in the coming days. Traders can do buying around 3550 for the upside target of 3620 and then to 3640 levels in days to come.
Support and stop-loss remain below 3480 on a closing basis.
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