Yesterday Nifty tested a record high on an intraday basis. Technically above 14666, Nifty may continue its rally for the target of 14766-14805. On the other side, major volatility would be seen in Banking and IT stocks due to Bajaj brothers Q3 2021 result impact and Biden’s Speech in the US respectively.
Market Summary
Indian Indices traded on a higher note ahead of Joe Biden’s oath ceremony. The benchmark continued the bullish trend on Wednesday’s trading session. The sectoral indices were also trading in the green on NSE. Nifty Financial Service and private Bank Stocks, Auto and PSU Bank added 2 percent each.
BSE Midcap and Small Cap indices rose 0.6-1 percent. Media stocks were trading higher tracking overall bullish indices. PVR led the gains, ZEEL also surged 1.27% higher. IT stocks have been at the lead of the bull –run yesterday. IT companies are rolling out with their quarterly results, the industry stocks have been pulling in good numbers on the market. Realty stocks were trading flat on Wednesday’s trading session.
The 30-share BSE Sensex was up 393.83 points, or 0.85%, to close at 49792.12. Nifty ended up around 123.50 points or 0.85% to close at 14644.70. Bank Nifty closed at 32543.70 .80 closed with a gain of 118.90 points. Indian Volatility Index plunged 5.88 percent to close at 21.55. Market breadth ended in favor of bulls. Around 1010 stocks on the NSE closed again, while 885 stocks ended with a loss, and 320 shares are unchanged.
Technical View on Nifty and Bank Nifty
Nifty
The index surpassed its immediate resistance of 14653.35 on the intraday basis and gave a 123.55 points higher close to close at 14644.70. The index price is likely to continue its rally above 14666 for the target of 14766-14804 marks. As per technical, Nifty 50 has an immediate resistance at 14666. Now, fresh buying would be seen either around 14588 (Spot) or above 14666 (Spot) marks.
Nifty Trend – As per technical, resistance laid down at 14666 and support around 13977. Every low is a buying opportunity around 14400 for the upside target of 14666-14766. Holding below 14400 may slide the price to 14200-13980 on the downside.
According to Open Interest Data, the maximum call open interest stand at 14700 followed by 14600 and the maximum put at 14500 followed by 14400 indicates a narrow range of trading in the upcoming session.
Valuation wise maximum Call & Put stand at 14600 indicates a crucial level for the index. PCR shifted its support to the 14500 levels. Writing in PUT & CALL both options left the next move indecisive.
Nifty Futures strategy for the day
Resistance comes at 14666 and Support lays down at 14500.
Strategy – Buy above 14666 with a stop loss of 14555 for the target of 14766.
Bank Nifty
Bank Nifty witnessed a short-covering yesterday. The index price added 118.53 points to close at 32543.70. The index price has taken a resistance of 32650 throughout the session. Technically, above 32300 Index price likely to continue to its rally for 32650-32850.
Bank Nifty Trend
Technically, above 31850, the price is heading towards 33300. Else may test 31800-31300 on the downside.
Nifty Bank Futures strategy for the day
Resistance at 32650 and Support at 32300.
Strategy – Buy above 32650 for intraday targets of 32850–33000.
Today’s Top Recommendation (21st Jan 2021)
Varun Beverages Ltd. (Cash)
Catch VBL stock above 930. Above 930 it will test 980 and then to 1000 in upcoming days.
Support and stop loss below 865.
PVR (Futures)
The stock has given a fresh breakout on the daily charts supported by volume. Traders are advised to buy above 1565-1570 for the upside target of 1580 and then to 1600 level’s in the days to come.
Support and stop-loss remain at 1530.
Traders can trade safely in Nifty, Bank Nifty and given Stock recommendations with levels only. More will update during market hours on our Telegram Channel, Blog and WhatsApp.
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