Despite a strong opening, Nifty 50 failed to surpass 11340 mark again. Now all eyes on 11340. If nifty manage to trade above 11340 then we will see an upside move of 80-150 points else it may test 11240-11140 on the downside.
Let’s see how market can react today?
Market Summary
Benchmark indices erased some intraday gains but ended higher for the third consecutive day. The BSE Sensex ended 0.37% higher to close at 38,182 while the NSE Nifty 50 index ended 0.54% higher to close at 11,274. The India Volatility Index ended 0.5% lower at 22.45. Market breadth remained in favor of the gainers. Around 1723 shares have advanced, 996 shares declined, and 166 shares are unchanged.
All the sectoral indices ended in the green led by the pharma, bank, auto, FMCG, and IT. Pharma continued to remain the out performer through the session and the Nifty Pharma ended with gains of 5.5%. Nifty Realty was the other major sectoral performer, ending with gains of 2.8%. Nifty I.T. (up 1%) and Nifty Metal (Up 0.8%) were the other major sectoral performers on the Monday trading session.
Technical View Nifty and Bank Nifty
Nifty 50
The index price again has taken a resistance of 11340 marks again. Now the price needs to hold above 11340 levels for fresh buying. PCR shifted to 11200 gives an indication of “Buy in Dip”. Any unfortunate trading below 11220 may slide it further for 11140 marks on the downside.
Nifty According to Open Interest Data, the Maximum Call open interest stand at 11500 followed by 11300 and max put at 11000 followed by 11200 indicates the range for the markets.
Valuation wise maximum Call & Put stand at 11300 and 11200 respectively indicate crucial levels for index. PCR shifted at 11200 indicates an immediate support level.
Nifty future strategy for the day
Resistance comes at 11340 and Support lays down at 11240
Strategy – Catch it, above 11340, Target 11420-11500 OR Sell it, Below 11240, Target 11160-11120
Bank Nifty
On the other hand, the financial benchmark Bank Nifty ended 0.62% higher. The financial index needs a close above 22000 to fresh rally.
Nifty Bank future strategy for the day
Resistance at 22100 and Support at 21800
Strategy : Buy above 22100 for the targets 22400-22700.
Sector Update
Nifty Realty took U-turn for fresh highs
After a short consolidation phase, Nifty Realty has given a super trend breakout and looks good for the bull run. Now we will expect a fresh uptrend will start in this sector. Hurdle around 210.50, break and close above 210.50 will see a sharp upside move till 220 and the to 225 levels in days to come. Support around 200, break and close below 200 will see fresh downside momentum in this sector.
Stocks like Brigade and DLF looks positive on the charts. Traders can go long on dip in these stocks for the day.
Top Stocks Recommendations for today (11th August 2020)
GICRE (Cash)
Stock is trying to bottom out and formed a large bullish candle on the daily chart. Traders can do buying around 147 for the sharp upside move till 155 and then to 160 levels in days to come.
Support and stop loss below 140.
CHOLA HOLDINGS (Cash)
Catch it above 351 for the upside target of 370 and then to 380 in days to come.
Support and stop loss below 335 on a closing basis.
ICICIBANK (Future)
Catch ICICI Bank around 363 levels as the stock has formed a rounding bottom pattern on the chart.
Traders can buy around 363 with a stop loss below 355 on a closing basis for an upside target of 372—375 levels in days to come.
MCDOWELL (Future)
McDowells looks positive from the lower level on the chart. Grab it around 595 levels.
Traders can buy around 595 with a stop loss below 585 on a closing basis for an upside rally of 610 +++ levels in the coming days.
Traders can trade safely with levels only. More will update during market hours.
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