Nifty ended on a flat note after erasing intra-day gains. Nifty Bank broke key support level 19000. Auto stocks rallied, Reliance witnessed a profit booking from Top after an announcement of the record date of the right issue.
Indian equity market ended lower after losing all intraday gains in the previous trading session. Following, weak global sentiments turn Nifty to close in red. The BSE Sensex fell 800 points from the day’s high of 32,301 to end at 31,561, down 0.2 percent while the NSE Nifty 50 fell over 220 points from its peak of 9,439 to end at 9,239. In Nifty 50, 30 out of the 50 index stocks ended the day with gains.
The market breadth was in favor of sellers. Around 1084 shares have advanced, 1280 shares declined, and 186 shares are unchanged. Among sectors, Nifty Auto was the top-performing sector ending with a gain of 4 percent followed by IT, infra, metal, while selling witnessed in the bank and pharma stocks on the Monday trading session.
Technical View on Nifty and Nifty Bank for today
Again benchmark indices fizzled out after witnessing selling pressure from the higher levels of the day. We are in favor of the “Sell on High” strategy.
Nifty has trend support at 8900 and interim support is seen at 9115.
On the higher side, we expect 9650/9850 to be tested in the next few weeks.
According to Open Interest data, Maximum Call open interest stands at 9500 followed by 9400, and Put at 9000 followed by 9200 suggests a broad trading range for the index. Valuation wise maximum Call Stand at 9300 and maximum Put stand 9200 indicates a crucial range for the index. PCR stands at 9000 validate it as a strong support level. Writing in Call & Put option indicates indecisive move ahead.
Nifty (future) strategy for the day
Nifty 50 has support at 9180 levels while upside resistance comes at 9400.
Trading below 9180 may extend its down move for the next 100—150 points, else may test 9400 on the upside. Trading above 9400 levels may fuel it for 9480—9530 on the upside
Sell below 9180 (Low-risk trader may sell around 9300)… for the target of 9100—9050.
On the other hand, Nifty Bank breached its psychological level of 19000. Technically Index looks weak for downside targets.
Nifty Bank (future) strategy for the day
Support at 18900 and Resistance at 19800
Trader may enter in a sell position below 18900 for the target of 18200—17800, else may test 19800 on the upside.
Fortunate trading above 19800 may lead price for 20500—20800 levels on the upside.
Nifty Financial Service Is In A Free Fall Mode
Today we have seen a sharp downfall in the Finance sector and broke its crucial support of 9380. Heavyweight stocks lead the downside rally in the last trading session. Sustain below 9380 will take it to 9100 and then to 8900 levels in days to come. Hurdle above 9800, break and close above 9800 will negate our negative view in this sector.
Stocks like ICICI Bank and SBI Life looks weak on the charts. Traders can do short on the rise in these stocks for intraday purpose.
Top Stock Recommendations For Today (12th May 2020)
Sell this stock below 128 levels as the stock looks weak and breaks its previous week low on the chart.
Traders can sell below 128 with a stop loss above 131 on a closing basis for a downside target of 125—123 levels in days to come.
After a consolidation now stock gives a downside breakdown on the chart and below 116 will see panic sell-off.
Traders can sell below 116 with a stop loss above 120 on a closing basis for a downside rally of 112—110 levels in the coming days.
Catch Hexaware around 345 for the upside target of 362 and then to 375 in days to come. Support and stop loss below 330 on a closing basis.
Traders can trade safely with levels only. More will update during market hours.