Yesterday, Nifty 50 has successfully closed past its resistance zone of 14700—14800. Indian Stock Market started the week on a strong note. The benchmark indices opened gap-up and continued to trade higher as the day progressed. We anticipate that 14900 should act as a resistance. Yet off the chance if the market breaks the levels of 14900, then it may move further till the level of 15300. On the options front (April 01, 2021 expiry), across the board writing was seen in the put option strikes as Nifty trended higher.
Indian Stock Market Summary
Nifty IT index advances over 2%, heavyweights HCL Tech, Infosys, TCS and Wipro were in the fast lance as the sectoral index on Nifty surged 1% on Tuesday. Nifty IT joined the market’s bulls to ride further. Realty Index got trapped in bears amidst bullish market. Pharma stocks were in the fast lane, all stocks listed on the index closed in green. On the index, Torrent Pharma led the rally surging by 3.1% followed by Cipla, Divi’s Lab, and Cadila Healthcare advancing nearly 3% each.
Nifty FMCG was trading in the green amid bullish markets. Heavyweights Britannia leads the charge. Jubliant Food and Nestle stocks were also upbeat to drive the sectorial gains. The Metal index was the top bulls, outperforming both benchmarks Sensex and Nifty ahead of monthly production data. Also, the metal company stocks were in the fast lane amid higher base metal prices.
The 30-share BSE Sensex closed at 50136.58 up around +1128.08 points, or +2.30%, over the previous day. The Nifty ended up around 337.80 points or +2.33% to close at 14845.10. Bank Nifty closed at 33875.10, closed with a loss of 556.90 points. Indian Volatility Index plunged -0.80% percent to close at 20.48. Market breadth ended in favor of bears. Around 1015 stocks on the NSE closed with gain, while 900 stocks ended with a loss, and 378 shares are unchanged.
Technical View on Nifty and Bank Nifty
Nifty
Nifty formed a big green candle on the daily chart, after a few days of the lackluster movement. 14,900 levels are expected to act as resistance. Breakout of these level’s then the market may witness a sharp upside rally till 15,300 levels. The market observed that the momentum indicators like RSI and MACD support the upside move and indicate that a fresh breakout potential is exceptionally high.
As per technical levels, resistance laid down at 14,900 and support at 14700. Above 14,900, it may test start a rally for 15100–15300 on the upside. Below 14700 marks, the price may correct further to 14600–14500 on the downside.
According to Open Interest data, the maximum CE open interest stand at 15000 followed by 15100 and the maximum PE at 14700 indicates a range of trading in the upcoming session. Valuation wise maximum CE & PE stand at 14700 & 15000 is a crucial level for the index.
Nifty Future strategy for the day
Resistance comes at 14900 and support lays down at 14700.
Strategy – Fresh sell below 14700 for the target of 14600—14500 or else it could test its resistance level of 14900—15000 on the upside.
Bank Nifty
Bank Nifty underperformed the Nifty Index. The index ended with a gain of 1.67%. The index ended with a gain and closed around 33875.10 (Spot level). Technically selling pressure will only come below 33500 levels for the downside target of 33000. Fresh buying can be done only above 34000, for the upside target of 34500-34700.
Nifty Bank Futures strategy for the day
Resistance at 34000 and Support at 33500.
Strategy – Either buy above 34000 for the target of 34500—34700 or sell below 33500 for the downside target of 33200—32700.
Top Stocks Recommendations for Today (31st March 2021)
DBL (Cash)
Price reversed from 50 EMA on the daily chart. Technically, It looks good for 605 levels
Trader may initiate long position for abovementioned levels with a stop loss of 564.
BIOCON (Cash)
Price has been following the Gartley pattern. Technically, It looks good for the fresh rally on the chart.
Trader may initiate long position in Biocon for above mentioned levels with a stop loss of 395.
Traders can trade safely in Index and above mentioned stocks with levels only. To get real time Indian Stock Market news and updates on your WhatsApp. Click on the banner given below.
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