NSE Nifty 50 ends above 9250; snapped a two-day losing streak on Dalal street. Bajaj Finance, M&M, GAIL, HDFC Bank and Bharti Airtel were among major gainers on the Nifty 50. While losers were Bharti Infratel, ITC, Coal India, IOC, and UPL.
Indian equity market ended green in a volatile session after witnessing selling in the initial trade and nifty regained the momentum to close above 9250 levels. The BSE Sensex gained over 0.75 percent to close at 31,685 while NSE Nifty 50 gained 0.7 percent to close at 9,270.
The Market breadth was in favor of sellers. Around 1074 shares have advanced, 1223 shares declined, and 141 shares are unchanged. Among the sectoral indices except for FCMG and IT, other indices ended on a positive note in the previous trading session.
Technical View of NSE Nifty 50 and Bank Nifty
Nifty price closed in the green on the EOD chart. Yesterday’s levels would have mattered most to be decisive for the next trend. It may be a confirmation candle for downtrend or a start of the “Buy in Dip” strategy.
Nifty has trend support at 8900 and interim support is seen at 9120.
On the higher side, we expect 9650—9850 to be tested in the next few weeks.
According to Open Interest Data, Maximum Call open interest stand at 10000 followed by 9500 & 9800, and Put at 9000 followed by 8500 suggests a broad trading range for the index.
Valuation wise maximum Call Stand at 9300 and maximum Put stand 9200 indicates a crucial range for the index. PCR stands at 9000 validate it as a strong support level. Writing in Call & Put option indicates indecisive move ahead.
Nifty future strategy for the day
Nifty 50 has strong support at 9100 levels while upside resistance comes at 9400.
The index is likely to trade in a range of 300 points from 9100 on the downside to 9400 on the upside. Trading above 9400 may extend its up move for the next 150—250 points, else it may test 9100 on the downside. Unfortunate trading below 9100 levels may drop it for the further downside of 8940—8780.
Catch it, above 9400… for the target of 9550-9650.
On the other hand, Nifty Bank outperforms the benchmark indices yesterday. HDFC Bank & ICICI BANK contributes the most to yesterday’s move.
Bank Nifty Future strategy for the day
Support at 19000 and Resistance at 20200
Traders can trade within a range and wait for confirmation.
Top Stock Recommendations for today (07th May 2020)
NAUKRI (Future) [Infoedge India Ltd.]
Stock is trading in a positive trend and looks attractive on the chart. Catch this stock above 2678 levels.
Traders can buy above 2678 with a stop loss below 2600 on a closing basis for an upside target of 2760 +++ levels in days to come.
RBL BANK (Future)
Grab it above 137 levels, as the stock has formed a bottom and ready for a sharp upside breakout on the chart.
Traders can buy this counter above 137 with a stop loss below 125 on a closing basis for an upside rally of 150 +++ levels in the coming days.
The stock has given a sharp breakout on its resistance level and closed above that levels. Now the stock is ready to make new highs in the upcoming session.
Traders can buy on dips around 81-80 for the sharp upside move till 90 and then to 95 levels in days to come. Support and stop loss will be below 73 on a closing basis.
The stock formed a bullish pattern with good volume on the daily chart. We will expect a sharp upside move-in days to come.
Traders can buy this stock above 377 for the sharp upside move till 405 and then to 425 levels in days to come. Support and stop loss below 350 on a closing basis.