13th March 2020
Indian stock market ended with a biggest single-day fall with a spike in volatility on the weekly F&O expiry due to the pandemic situation of coronavirus in the world with a continuous sell-off in global as well as Indian markets. The BSE Sensex Index ended 8.18 percent lower to close at 32,778. The NSE Nifty 50 index fell 8.3 percent to close at 9,590. All 50 stocks ended in red while 27 of them ended at a 52-week low.
The market breadth was in favor of sellers. Around 217 shares have advanced, 2203 shares declined, and 102 shares are unchanged. All the sectoral indices ended in the red, with Nifty PSU Bank index slipped over 12 percent followed by Energy down by 9.4 percent while metal, IT and Pharma down over 8 percent each on the Thursday trading session.
Technical view of Nifty update
Today Nifty breached 10000 levels and tested a level of 9412 on the downside. Nifty has a vast range of trading is open now.
Technically, if nifty holds above 9400 levels then we may see a dead cat bounce till 9700—9850 as a relief rally on weekend. Any trading below 9400 may slide price further for 9200—9100 on the downside.
According to open interest data, the maximum CE open interest stand at 10000 and PE at 9000 suggests a broad trading range for the index. Valuation wise maximum CE & PE stands at 9500 indicates a crucial level for index, PCR stand at 9500 validate it as a strong support level. Writing in call and long buildup input option indicates weak move ahead
Strategy for the day
Sell Nifty future below 9400 with stop loss above 9650 for the downside target of 9200—9100.
Bank Nifty update
Bank Nifty has been trading near its immediate support of 23000. Any closing below 23000 on weekly basis may extend its downside targets to 19000. Any Dead Cat Bounce from current levels may give a pullback rally till 24800—25500 and then to 26300 levels.
Strategy for the day
Buy Bank Nifty future above 24200 with stop loss below 23800 for the upside target of 24800—25500—26400
Trade safely with levels only
Concentrate on today’s stocks…
Stock is trading in consolidation and looks weak below 188 levels on the chart. We will expect more downside movement in it.
Traders can sell below 188 levels with a stop loss above 200 levels on a closing basis for the target of 170—165 levels in days to come.
After a sharp upside rally stock takes a sharp reversal and if it gives breakout below 1580 levels on the chart. Technically we will expect a downside rally in this stock.
Traders can sell below 1580 levels with a stop loss above 1630 levels on a closing basis for the target of 1530—1520 levels in the coming days.