Indian stock market halted after seven days of continuous fall and ended higher on the previous trading session with a highly volatile session. The BSE Sensex advanced 1.26 percent to close at 38,623.70 and the NSE Nifty 50 gain 1.53 percent to close at 11,303.30. The broader markets index NSE Nifty 500 Index gain by 1.59 percent.
The market breadth was in favor of buyers. Around 1,015 stocks advanced and 757 shares declined on National Stock Exchange. All the 11 sectors compiled by the NSE ended higher, led by the NSE Nifty Metal Index gain by 5.6 percent on Tuesday trading session.
Nifty & Bank Nifty Technical view
Today we got a most awaited move, Bull took a breath today. Nifty snapped seven day’s downfall and added 170.55 points on a closing basis. The most performing sectors were Metal and pharma on the news of improving the supply situation in China and increasing cases of coronavirus respectively.
After giving a gap-up move in opening trade Index face a resistance above 11320(Spot). After testing a high of 11317.1 prices slipped from higher levels and marked a low of 11152.55. Bull took responsibility from the lower level and rallied for 190 points. Nifty snapped seven day’s downfall and added 170.55 points on a closing basis.
Today, Nifty followed a strategy of “Buy in Dip” and gave a close above the immediate resistance of 11300. Price formed a Bullish Harami pattern from the bottom.
Our down trend view is on pause for the upcoming one and two trading sessions. We are expecting a volatile session ahead, try to buy from any dip with a stop-loss of 11000 for a target of 11420-11550.
According to Nifty Open Interest Data, the Maximum Call open interest stand at 11600 followed by 11500 and put at 11000 followed by 11200 suggests us resistance and support for the index. Valuation wise maximum Call & Put stands at 11300 indicates a crucial level for index, PCR stand at 11100 validate it as a strong support level. Writing input options and buildup in call option indicates buy momentum ahead. scattered data between 11000 to 11600 suggest volatile session ahead.
Our bullish view would negate after trading below 11000
Unfortunate trading below 10970 will slip price for a target of 10650 on the downside
Strategy for the day
Support 11150, Resistance 11350
Trading above 11350 may give a pullback for 11450-11550, else it may test its support level
According to Bank Nifty Open Interest Data, Maximum Call open interest stand at 29500 (contract as well as valuation wise) and put option 29000(contract as well as valuation wise ) followed by 28500 suggests a trading range of 1000 points. PCR stands at 28800 validate it as a strong immediate support level. Writing input options and buildup in call option indicates buy momentum ahead.
Technically Banknifty has an immediate resistance at 29300-29700 and support at 28900-28500 zone.
Support 28800, Resistance 29300
Trading above 29300 may drag price for 29650-29850 on the upside, else it may test its support level
Concentrate on today’s stocks level…
After a long correction on the daily chart stock is trying to take reversal on the daily chart. We will expect a sharp upside move in this stock in the coming days. Traders can do buying above 74 for the upside target of 78 and then to 80 levels in days to come. Support and stop loss remains at 70 levels on a closing basis.
After the strong bullish rally on the daily chart, the stock is ready to fly. We will expect a sharp upside move-in days to come. Traders can do buying around 1490 for the sharp upside move till 1560 and then to 1600 levels in days to come. Support and stop loss remains at 1420 on a closing basis.
After a long correction, the stock has taken a sharp upside reversal on the chart. We will expect more upside movement in it.
Traders can buy around 390 levels with a stop loss below 370 levels on a closing basis for the target of 415—420 levels in days to come.
Stock has formed a bullish engulfing candle and looks positive on the chart. Technically we will expect an upside rally in this stock.
Traders can buy around 198 levels with a stop loss below 190 levels on a closing basis for the target of 215 levels in days to come.