Yesterday’s financial index Bank Nifty performed well and surpassed immediate resistance of 32300 on a close basis. Yesterday, the rally was mainly led by PSU Banks. Now, technically Banks Nifty looks for 33300 and Nifty has a target of 14700.
Benchmark Indices Nifty 50 closed above 14550. Nifty Auto was on the fast track and kept its series of wins for two successive days in the current week. On Tuesday, auto stocks were the top bulls of the day as investors are hopeful for better income during Q3FY21 drove by progress sought after and deals. Tata Motors announced the sales figures of its luxury car brand for the quarter ending 2020, sales were at 13.1% higher than the preceding quarter.
Nifty Realty zoomed almost 4%, after a stifled beginning. DLF drove the convection and hit a 52-week high. Pharma stocks were under pressure, investors opted for huge profit booking. Heavyweights Sun Pharma, Divis Lab, Cipla, Lupin, DR Reddy’s led the losses. IT stocks were trading flat, regardless of bullish benchmark indices. Nifty PSU Index added almost 6% with Nifty Bank rose 1%.BSE Midcap and Smallcap Indices added 04 percent and 0.12 percent respectively.
The 30-share BSE Sensex was up 247.79 points, or 0.50%, to close at 49517.11. The Nifty ended up around 78.70 points or 0.54% to close at 14563.50. Bank Nifty closed at 32339.00 closed with a gain of 340.10 points. Indian Volatility Index Surged 2.08 percent to close at 2285. Market breadth ended in favor of bulls. Around 1017 stocks on the NSE closed with again, while 873 stocks ended with a loss, and 336 shares are unchanged.
Technical View on Nifty and Bank Nifty
Nifty 50 gave a record closed at 14573.95 with an addition of 89.20 points. Price formed a strong green candle on the daily chart which suggests a continuation of the bull trend. Trader may initiate a fresh long position at any dip around 14520 or may hold already existed position for target of 14650-14760.
As per technical, resistance laid down at 14700 and support around 13980. Every low is a buying opportunity around 14200 for the upside target of 14540-14700. Holding below 13980 may slide the price to 13800-13650 on the downside.
According to Open Interest Data, the Maximum Call open interest stand at 15000 followed by 14800 and the maximum put at 14000 followed by 14200 & 14400 indicates a broad range of trading in the upcoming session.
Valuation wise maximum Call & Put stand at 14500 indicates a crucial level for the index. PCR shifted its support to 14400 levels. Long Buildup incall & writing input options suggests a continuation of upward move ahead.
Nifty Futures strategy for the day
Resistance comes at 14760 and Support lays down at 14450.
Strategy – Buy in dip around 14520 for the target of 14650-14750.
After four consecutive red candles, Bank Nifty gave a bounce back with the strong bull move. Index Price gave a close above its immediate resistance of 32300. Now, Technically, the Index price has a target of 33300 on the upside.
Technically, above 31300, the price is heading towards 33300.
Bank Nifty Futures strategy for the day
Resistance at 32500 and Support at 31800.
Strategy – Buy around 32300, for the target of 32900-33300.
Top Stock Recommendation For Today (13th Jan 2021)
Cholamandalam Financial Holdings (Cash)
The stock looks bullish on the daily chart and ready for another rally. Traders can buy above for the upside gain to 630 and then to 660 levels in days to come.
Support and stop loss remains at 570 on a closing basis.
The stock has rebounded from major support levels and formed a strong bullish candle, indicating a move towards the upside. Traders are advised to buy above 207.50 for the upside target of 211 and then to 215 levels in the days to come.
Support and stop-loss remain at 202.50.
Traders can trade safely in Nifty, Bank Nifty and Recommended stocks with levels only. More will update during market hours.
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