Yesterday, Nifty surpassed its weekly crucial level of 15235. Major heavy weight stocks closed in green. Technically, 15235 is a crucial resistance level. Above 15235 price may rally for 15310–15430. Else it may test 15150–15050 on the downside.
Bulls continued their rally for the straight third day. Nifty 50 reclaimed 15,000 mark on Wednesday’s Opening Bell. Sensex also climbed nearly 1000 points. Market performance was lifted due to broad-based buying witnessed across sectoral indices on exchanges with banking and metal stocks outperforming. Also, positive global cues added to the bullish sentiments.
Metal stocks recorded stellar buying, as investors focus shifts on monthly production data. Heavyweights stocks performed near fresh-highs which led Nifty Metal over 4,000 marks. Nifty Realty was also on the bull ride during mid-day. DLF led the charge by hitting 52 – week high. Nifty FMCG stocks remained steady amid bullish market sentiments. Beverage company United Spirits lifted the sector with 2.5% gains while heavyweights Godrej CP and Tata Consumer surged over 1%.
A stellar buying was witnessed in banking stocks, with public sector banks logging a sharp rally. All stocks listed on Nifty Bank were traded in the green. Indian IT index was in the fast lane, defying global technology stocks sell off which dragged Wall Street overnight. Heavyweight stocks like Infosys, TCS, Wipro, L&T Infotech and HCL Tech were major lifters of the sectoral indices.
The 30-share BSE Sensex closed at 51444.65 up around 1147.76 points, or 2.28%, over the previous day. The Nifty ended up around 341.85 points or 2.19% to close at 15,245.6. Bank Nifty closed at 36485.00, closed with a gain of 1030.15 points. Indian Volatility Index plunged -6.52% percent to close at 22.07. Market breadth ended in favor of bulls. Around 685 stocks on the NSE closed with a loss, while 1195 stocks ended with gain, and 358 shares are unchanged.
Technical View on Nifty and Bank Nifty
Nifty 50 price surpassed its immediate resistance of 15235 and ended higher by 2.19 % at 15245.6 marks. Price formed a strong green candle and continued its rally. Now, technically above 15235, the index is likely to continue its winning streak. Any trading above 15235 would be buying opportunity for upside targets of 15320-15430–15480 in coming days.
Nifty Trend – As per technical, resistance laid down at 15320 and support around 15000. Above 15320, it may test start a new rally for 15800-16300 on the upside. Below 15000 marks, the price may correct further to 14760–14640 on the downside.
According to Open Interest Data, the Maximum Call open interest stand at 15500 followed by 15300 and the maximum put at 15000 and 14500 indicates a range of trading in the upcoming session.
Valuation wise maximum Call & Put stand at 15300 & 15200 is a crucial level for the index. PCR shifted its support to 15000 levels.
Nifty Futures strategy for the day
Resistance comes at 15320 and Support lays down at 15050.
Strategy – Fresh buy Above 15320 for the target of 15430-15480, Else may test 15150-15050 marks on the downside.
Bank Nifty gave a strong start and hold the momentum throughout the day. The index ended 2.61 percent higher at 36485. Technically, the rally is likely to continue above 35800 for the target of 37000. The fresh sell would be seen below 35800 for the targets of 35000-34500 in coming days.
Bank Nifty Trend – Technically, immediate support comes at 34500 marks. Above 35000 it may rally for 36600–37700, else it may test 34000-33000 on the downside.
Nifty Bank Futures strategy for the day
Resistance at 36700 and Support at 35500.
Strategy – Fresh buy above 36400 for the target of 36700-37000.
Top Stock Recommendations for Today (4th March 2021)
The stock price has given a close above its immediate resistance of 918. Technically its looks good for the target of 936-946
Trader may initiate a long position for the upside target of 936–946 with a stop loss of 900.
The stock price seems to reverse with a double bottom pattern. Technically it’s likely to continue its rally for the target of 127-130.
Trader may initiate long position with a stop loss of 121 for an abovementioned target.
Infosys has given a fresh breakout on the daily chart, we can see a further upside move in the days to come. Traders are advised to do buying around 1350 levels for the upside target of 1400 and then to 1420 levels, in the days to come.
Support and stop-loss remain at 1330 levels.
Traders are advised to trade safely with levels only. To get real time market updates, news and recommendations on your WhatsApp. Click on the banner given below.
We are a SEBI registered investment advisor. The above free information is for education/knowledge purposes. Read disclaimer on our website before investing.